Regular Saver - after 12 months

book12

Most banks regular savers will convert to an instant access savings account after 12 months. The sort code account number will remain the same.

My situation is as follows regarding regular savers accounts:

I have one regular saver that ran from 2013-2014. On the anniversary, the account changed into an instant access savings account. The sort code and account number remains the same after the anniversary.

Then I open another regular saver (2014-2015) with the same bank (different sort code and acount number). The regular saver will then run for another 12 month. Then after that it will convert into an instant access account. The sort code and account number remain the same again after the conversion.

Later on I will end up with multiple instant access savings account.

Do you think I should consolidate it into one instant access savings account, and close the remaining instant access accounts, thereby leaving just one?

Hope you get what I mean.

colsten

book12 wrote: »

Do you think I should consolidate it into one instant access savings account, and close the remaining instant access accounts, thereby leaving just one?

Given the abysmal interest rate they pay, why would you want to keep any of the instant access accounts for any length of time? I move my money into one or more interest paying current accounts the minute it shows in the instant access account, and then feed another RS from there. The IA then sits there empty until I get round to closing it.

book12

I guess I will follow your advice where once the regular saver turns into an instant access one after a year, I will put it into a high interest current account, and then transfer the money frim the CA to the new regular saver.

It will be a hassle to close the instant access account each year though but I guess it has to be done.

colsten

It doesn't have to be done - the account could sit there indefinitely with a zero balance. But you might want to tidy up by closing it.

Note that not all providers do what you describe. I seem to remember Lloyds, TSB, BOS and some Building Societies do. First Direct, HSBC and KRBS empty the RS into the same instant access account each year. M&S have just notified me that they will move the money into my M&S current account on maturity.

Eco_Miser

book12 wrote: »

It will be a hassle to close the instant access account each year though but I guess it has to be done.

As colsten said, it doesn't have to be done, but it needn't a hassle either (may depend on account). I've closed several online just by emptying the account and clicking the "Close this account" button (or link or whatever it was).

Superscrooge

colsten wrote: »

It doesn't have to be done - the account could sit there indefinitely with a zero balance. But you might want to tidy up by closing it.

Note that not all providers do what you describe. I seem to remember Lloyds, TSB, BOS and some Building Societies do. First Direct, HSBC and KRBS empty the RS into the same instant access account each year. M&S have just notified me that they will move the money into my M&S current account on maturity.

One useful point...........You are correct on maturity First Direct will transfer the proceeds to an instant access account, But I told them I would prefer the proceeds to be paid into my FD current account and they were quite happy to do that.

colsten

Superscrooge wrote: »

I told them I would prefer the proceeds to be paid into my FD current account and they were quite happy to do that.

Good to know they can do that. I am quite happy myself letting them do what they do by default as it's faster for me to transfer the money from the savings into my current account than calling them. It's no big sweat either way.

Dan83

I've done the same in the past, I just left the accounts empty for years, I only shut them down about 2 weeks ago.

book12

Thanks for the replies so far.

I've been reading all high street banks regular saver products. I think Halifax's regular saver feature is good and hopefully other banks will adopt the method (see below extract from the Halifax website):

After 12 months, any money you have saved into your Regular Saver along with interest accrued will be transferred into the Everyday Saver account (instant access account) and your Regular Saver will continue for another period of 12 months at the interest rate applicable at the time.

This means the regular saver stays open, and won't get converted to an instant access account. Also there is no need to open a new regular saver each year when it gets converted into an instant access account.


I only have 2 so far and what it open another one in the near future.

ceredigion

book12 wrote: »

Thanks for the replies so far.

I've been reading all high street banks regular saver products. I think Halifax's regular saver feature is good and hopefully other banks will adopt the method (see below extract from the Halifax website):

After 12 months, any money you have saved into your Regular Saver along with interest accrued will be transferred into the Everyday Saver account (instant access account) and your Regular Saver will continue for another period of 12 months at the interest rate applicable at the time.

This means the regular saver stays open, and won't get converted to an instant access account. Also there is no need to open a new regular saver each year when it gets converted into an instant access account.


I only have 2 so far and what it open another one in the near future.

the Halifax one is only 2%

Eco_Miser

The method of maturing the account is good, but 2% AER is poor compered with the 6%, 5%, 4% AER available with other banks.
I'll take a little inconvenience once a year, and double or triple my RS income.