Regular Savers - open new after 12 months?

WineDarkSea

After seeing a comment about maxing out regular savers I've been trying to find out whether I can have another once the current one ends - eg I have a HSBC one ending in March, will I be able to open a new HSBC regular saver once the deal ends, so starting over from £0 and drip feeding the money back in? I've seen comments suggesting this is correct but nothing definite from searching the banks' websites.

I was holding back from opening more with other banks so I could do it consecutively rather than simultaneously. I have £20k in 3% accounts I could use to maximise the returns by drip feeding - initially opening regular savers with Nationwide and Santander. Then I'd need to switch for the M&S and First Direct, possibly waiting a while so the timings are staggered rather than locking in lots of cash all at the same time. Plus my three flex direct accounts start ending in February so need somewhere to put that £7k.

With five regular savers I should make £244 more than keeping it in Santander etc, plus any switching bonuses!

Ballard

Yes you can.

midge406

The bank will close the regular saver after the year is up and transfer the full balance plus interest into a our current account. You can then open a new saver.

badger09

Ballard wrote: »

Yes you can.

midge406 wrote: »

The bank will close the regular saver after the year is up and transfer the full balance plus interest into a our current account. You can then open a new saver.

Assuming the bank in question still offers a regular saver, with interest rate and T&Cs you are prepared to meet, when the time comes to renew;)

WineDarkSea

Great news. I was holding back so I could use another once this was over but also did wonder if the deals would be pulled or improved by that point anyway. I'll go ahead with the NW and Santander now and prep for a couple of switches for the M&S and First Direct in the coming months.

WineDarkSea

Just looking at the first direct switch which seems the easiest - no direct debits needed, just a £1000 payment and monthly transfer to avoid the £10 fee.

I have a basic account with BoS which I've never used, has no balance and no DDs or SOs. It was opened in February or March this year. Would this account be suitable for the switch? And would it be bad to have a £0 balance as long as I make the transfer monthly? I'd also use the £500 monthly regular saver.

Are there other accounts that are recommended to set up for getting switching bonuses in future? The current offers require at least 2DDs. Perhaps adding DDs to my flex directs would be enough to switch once the 5% rate ends. Are the switching bonuses treated as taxable income?

bsms1147

WineDarkSea wrote: »

Just looking at the first direct switch which seems the easiest - no direct debits needed, just a £1000 payment and monthly transfer to avoid the £10 fee.

£1 kept in one of their specific savings accounts will meet the requirements to avoid the fee.

I have a basic account with BoS which I've never used, has no balance and no DDs or SOs. It was opened in February or March this year. Would this account be suitable for the switch? And would it be bad to have a £0 balance as long as I make the transfer monthly?

That would be fine to switch.

I'd also use the £500 monthly regular saver.

FD's saver is £300 a month.

FOREVER21

midge406 wrote: »

The bank will close the regular saver after the year is up and transfer the full balance plus interest into a our current account. You can then open a new saver.

I think the OP will be annoyed if the bank close the regular saver and pay the money into your current account.

Futuristic

midge406 wrote: »

The bank will close the regular saver after the year is up and transfer the full balance plus interest into a our current account. You can then open a new saver.

Not true for every savings account, I am pretty some of them convert the account into another saving account (usually "instant" account with crappy rate) which you can then withdraw from. But yes you can just close this and then re-open another one and go again for another 12 months.

xylophone

Just looking at the first direct switch which seems the easiest - no direct debits needed, just a £1000 payment and monthly transfer to avoid the £10 fee.

You can open a standard savings account once you have switched to FD and deposit a small amount.

You would not then need to transfer in £1000 a month.

The regular monthly saver takes a maximum £300 a month - you set this up from the current account.

When the Regular Saver matures, FD will transfer the proceeds to the standard saver and you will be able to start a new regular saver.

C_J

My HSBC Advance regular saver matured last month. A few days after they closed the account and transferred the money + interest into my existing flexible saver, I opened a new regular saver online. It appeared immediately, new account number etc, showing the first £250 I had transferred into it.

The following week I received a letter from HSBC thanking me for applying for a Regular Saver account, but saying that they couldn't open one for me as I already had one. I guess they were just a bit slow in catching up