Regular Saver Thread **New and Restarted**

veryintrigued

Possibly a little light on interest for SS thread but just in case:


Special Occasions Saver
Do you want a regular savings account which lets you save at your own pace for that special occasion or for that special purchase?
Darlington Building Society is dedicated to sharing with its local communities and if you live in any other following postcodes (DL, DH, SR, TS, YO and HG) then we can help you get into the saving habit.

Whether you want to save for your next holiday, your dream car, a family wedding, Christmas or indeed for any special event, our Special Occasion Saver can help you.

Our Special Occasion Saver offers flexibility; you can save any amount you like each month up to £250 and if you decide you don't want to save anything at all in any particular month that is your decision and we won't penalise you for it.

The Special Occasion Saver has been designed to help you save up for a special occasion so naturally at some point you will want to withdraw money from the account. We will allow you to make up to four withdrawals penalty free however if you make a fifth withdrawal your account will be closed.

With our Special Occasion Saver there is now no excuse for you not to save up the money you will need for that special purchase or for that special occasion so why not open an account today?

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?