Regular saving account

colsten

Rich2808 wrote: »

The 6 per cent regular savers are good - but you have to restart from zero, rinse and repeat every year. The funds I have built up in my Leeds RS earn 3.05 per cent year on year on year on the entire balance built up. That beats 3 per cent.

You can make 4.6% on £3,000 over 12 months, by combining a 3% current account with a 6% Regular Saver. That beats 3.05%.

Even if you are barred from Club Lloyds, you can stick £1,550 a month into 5% and 6% Regular Savers. That beats £250 into a 3.05% one. It's easy enough to find "proper" 3% feeder accounts - although you might have to shuffle your money about a bit during the year.

I maintain you can make 4%+ on some £55,000.

grumbler

Rich2808 wrote: »

Sorry. I beg to differ.

...no other one pays more than 3 per cent.

And all this recycling doesn't work if you are already at the maximum balance for earning interest.

OK, it's ~4.5% on £3.6K if fed from 3% to 6%, i.e. extra ~1.5% on £3.6K.

Both 4.5% and 1.5% figures differ from the 3% that you quoted.

The 6 per cent regular savers are good - but you have to restart from zero, rinse and repeat every year. The funds I have built up in my Leeds RS earn 3.05 per cent year on year on year on the entire balance built up. That beats 3 per cent.

Yes, it beats, but only if you feed 6% from 0%, that is never the case.
As you have money in 2-5% accounts it makes no sense to ignore 4-6% RS.

It's a different question whether it makes sense to feed your 3.05% RS from 4-6% accounts, but if all accounts are full, it does make sense to put extra money to this RS.

colsten

grumbler wrote: »

Yes, it beats, but only if you feed 6% from 0%, that is never the case.

Some people do. E.g. I know people who feed the FD RS exclusively from their FD current account, on the grounds that they only want to bank with FD. Incredible but true.

darkidoe

colsten wrote: »

Some people do. E.g. I know people who feed the FD RS exclusively from their FD current account, on the grounds that they only want to bank with FD. Incredible but true.

Oh i didn't know you could fund the regular saver from an external account, I have been sending in the £300 into the current account every month by SO before it gets transferred to the regular saver by SO. It would be so much easier if I have a single account with large balance to fund all the regular accounts.

YorkshireBoy

darkidoe wrote: »

Oh i didn't know you could fund the regular saver from an external account...

You can't.

I think you may have misunderstood colsten's post, which highlighted a case where the account holder only had one current account.

SuperAllyB

One current account? What a quaint concept. Life was certainly simpler in those days though.

Rich2808

colsten wrote: »

You can make 4.6% on £3,000 over 12 months, by combining a 3% current account with a 6% Regular Saver. That beats 3.05%.

Even if you are barred from Club Lloyds, you can stick £1,550 a month into 5% and 6% Regular Savers. That beats £250 into a 3.05% one. It's easy enough to find "proper" 3% feeder accounts - although you might have to shuffle your money about a bit during the year.

I maintain you can make 4%+ on some £55,000.

I have the NW, TSB, FD, HSBC and M&S one year regular savers already maxed up. I have all bases covered thank you. The proceeds at year end go into other investments - my pension, stock and shares isas or other RS accounts etc. Your advice may be right for other savers starting off - but not me. I am maxed up and Leeds is the next best as it pays a little more than 3 per cent which beats my Tesco rate. And I like them in my local branch too.

The advice here is right for most - but not always. And many people can't always open lots of current accounts - their credit rating means they won't be taken on. Anyone can open the Leeds account if they have proof of ID.

alanq

Yorkshire (including Chelsea) BS has a 2-year Regular Saver but it only pays 2% AER.

Rich2808

Vortigern wrote: »

No perpetuity with Leeds BS. They have history of closing earlier issues of their regular saver and dropping the interest to minimal.

See:


I have been a member for over 10 years - and had regular savers for much of that time. They did that once - some members had saved up to £20k plus.

Any provider can close an account or cut the rate at any time - its the risk you take. But Leeds have generally served me better than most over time.

colsten

darkidoe wrote: »

Oh i didn't know you could fund the regular saver from an external account, I have been sending in the £300 into the current account every month by SO before it gets transferred to the regular saver by SO. It would be so much easier if I have a single account with large balance to fund all the regular accounts.

You can't but you can do what you and I do: SO £300 into the FD current account from an interest-earning account, on the day the SO from the FD current account to the FD RS is due. Apologies if I caused any confusion.

AFAIK, it's only the "HSBC" RSs that must be funded from their own current account: FD, M&S and HSBC themselves.