Regular Saver Thread **New and Restarted**

schiff

This could be useful with its innovative terms for deposits and especially withdrawals. Beats Santander and Bank of Scotland's 1.5%, though obviously for smaller amounts initially.

I've a mortgage with them but don't live in their catchment area; they may let me in. I'll enquire.

etienneg

Would you really bother with this for an extra 0.25% on small amounts?

A monthly saver for £250 per month at 1.75% will produce around £28 interest in the year. The same amount added monthly to an ordinary instant access saver at 1.5% will give £24.

Is it worth the extra bother for £4, especially if you value the "innovative terms for deposits and especially withdrawals", which implies you're likely either to not fund consistently or to withdraw during the year?

There are regular savers available at 5%, 3%, 2.5% and 2%, which obviously all produce more interest than this one. I appreciate that they may need you to open a current account at the same bank/building society. But if you're going to bother, surely you look at the best of these?

schiff

etienneg wrote: »

Would you really bother with this for an extra 0.25% on small amounts?

There are regular savers available at 5%, 3%, 2.5% and 2%, which obviously all produce more interest than this one. I appreciate that they may need you to open a current account at the same bank/building society. But if you're going to bother, surely you look at the best of these?

I've got all those. My 'loose' money earns 1.5% interest. I've stopped doing RSs that offer 2% or less though I kept the Bank of Scotland 2% RS going because of its conditions, thinking along the same lines as for Darlington. I decided not to commit to RSs that required minimum conditions and limited or no access during the saving period for 2% or less. In case better places to invest cropped up.

schiff

The eSaver created for last month's maturity is now showing a minus figure equal to the excess interest paid out. Unless approached directly before then, I propose to clear it out of the April maturity.

gwapenut

colsten wrote: »

Only if you make at least £5/mth in cashback.

Not even then, if you consider that the cashback can be earned for just £1 per month rather than £5.

With a cost of at least £4 per month extra and a maximum interest earning balance of £20k, the S123 account can only ever pay an effective interest of 1.26% at best.

As the monthly fee does not affect tax relief, the net performance versus other savings accounts worsens for a basic or higher rate tax payer who has used all of his or her tax free savings allowance. The effective rate drops to 1.2% and 1.1% respectively in those cases.

Nasqueron

colsten wrote: »

Only if you make at least £5/mth in cashback.

I have a decent sum in there to earn interest to cover the fee, however I am planning on switching it when the current saver plan ends and reduce the cash I hold in there as it's not ideal since the rate dropped

adindas

Nasqueron wrote: »

I have a decent sum in there to earn interest to cover the fee, however I am planning on switching it when the current saver plan ends and reduce the cash I hold in there as it's not ideal since the rate dropped

Colsten is referring to cashback not interest.

Keep in mind there is a fee of £5 a month in order to get 1.5% with up to £20,000.

You will only get a clean 1.5% interest if you have at least £5 cashback generated by your DDs from santander 123 ac.

Nasqueron

adindas wrote: »

Colsten is referring to cashback not interest.

Keep in mind there is a fee of £5 a month in order to get 1.5% with up to £20,000.

You will only get a clean 1.5% interest if you have at least £5 cashback generated by your DDs from santander 123 ac.

Yes I can read, what I meant is I get more back than the £5 fee alongside a bit of DD cashback.

colsten

Nasqueron wrote: »

Yes I can read, what I meant is I get more back than the £5 fee alongside a bit of DD cashback.

Have you worked out how much more you would get in an account that pays 1.5% AER and that has no monthly fee?

KTF

Drop it down to the 123 lite. You still get the cashback with a reduced fee then put the balance in Marcus to get the 1.5%.