Where to put savings?

Cotta

Eco_Miser wrote: »

So far, the regular saver has been renewable every year, with whatever conditions were current at the time. It's apparent short duration is no reason not to take advantage of 5% while it's around.
Other Regular Savers are available at 5% and lower, and other current accounts also pay worthwhile interest, although not as much as last year.

What do you mean it's renewable? Surely If I have £1000 in at the end of it's term - I can't just renew then for another 12 months @ 5% with the original £1000 there?

Eco_Miser

I mean you can start another one. The question of where to put the accumulated money is to be considered in 12 months time, or so, when the offers then available are known.
Some people arrange things so that a Regular Saver matures each month, and the proceeds are immediately fed into its replacement and the other 11 RSs. The instant access and wide variability of monthly payments available on many of the RSs help to make this viable.

Other people take the accumulated Saver proceeds and invest them as a lump sum in an S&S ISA.

Either way, they keep renewing the regular savers as they mature.

Cotta

Eco_Miser wrote: »

I mean you can start another one. The question of where to put the accumulated money is to be considered in 12 months time, or so, when the offers then available are known.
Some people arrange things so that a Regular Saver matures each month, and the proceeds are immediately fed into its replacement and the other 11 RSs. The instant access and wide variability of monthly payments available on many of the RSs help to make this viable.

Other people take the accumulated Saver proceeds and invest them as a lump sum in an S&S ISA.

Either way, they keep renewing the regular savers as they mature.

That's an interesting point. I will have this conundrum early next year when my Nationwide RS matures. As least now I know I have the option of setting up a new one, however as you said, where does the surplus go?