Regular Saver Thread **New and Restarted**

quirkydeptless

bristolleedsfan wrote: »

Depends what rate regular saver is being discussed, those who have lump sum savings who feed into regular savers and wont need the funds for at least 12 months.

2% 1 year fix -getting 2% on the whole amount for 365 days

Very little point having the funds in a 1.5% feeder account feeding 250.00 a month into 2.5% regular saver that only lasts for 12 months.

Most of the sub 3% regular savers allow penalty free access (where as some don't allow it at all, or wipe your interest), so in effect I see it as boosting a 1.5% instant access feeder, whereas in the 1 year fix, the money is committed for the year.


So it's important to check the T&C, e.g. the Lloyds regular savers can be accessed, but their banking group partner, Halifax, locks you in for the year!


The 5% regular savers from HSBC, First Direct and M&S effectively lock you in, but are way better than any fix.


The V[REDACTED] 3% ones can be accessed any time, so are super worth it if you are in striking distance of a V{REDACTED] branch.

bristolleedsfan

quirkydeptless wrote: »

Most of the sub 3% regular savers allow penalty free access (where as some don't allow it at all, or wipe your interest), so in effect I see it as boosting a 1.5% instant access feeder, whereas in the 1 year fix, the money is committed for the year.


So it's important to check the T&C, e.g. the Lloyds regular savers can be accessed, but their banking group partner, Halifax, locks you in for the year!

.

2.5% and below 1 year regular savers - majority - hence the example given, I did also add "and wont need the funds for at least 12 months"

dcs34

Hopefully finished setting up my new Ecology Regular Saver, is there anyway I can confirm online the direct debit(s) have been set up correctly?

The account I've linked it to (Santander) is showing other new DDs but not the Ecology ones. First payment should be due on the 2nd July but not sure I just want to wait and hope it goes through. Best to give them a call?

schiff

dcs34 wrote: »

Hopefully finished setting up my new Ecology Regular Saver, is there anyway I can confirm online the direct debit(s) have been set up correctly?

The account I've linked it to (Santander) is showing other new DDs but not the Ecology ones. First payment should be due on the 2nd July but not sure I just want to wait and hope it goes through. Best to give them a call?

Are you not funding it by SO? Direct Debits take time to come into effect.

dcs34

I've made a one-off payment (just to bring the balance above £0) but I'd wanted to get a direct debit setup for the long-term so I can switch the current account for an incentive

JamesRobinson48

dcs34 wrote: »

Hopefully finished setting up my new Ecology Regular Saver, is there anyway I can confirm online the direct debit(s) have been set up correctly?

The account I've linked it to (Santander) is showing other new DDs but not the Ecology ones. First payment should be due on the 2nd July but not sure I just want to wait and hope it goes through. Best to give them a call?

My RSA opening experience with the Ecology BS was a rather slow set up process on their part as the first DD happened a day or two late. But otherwise all has been fine.

polymaff

polymaff wrote: »

You and the 18-month old poster are missing the point. Regular Savers score when they are funded by regular income. If you have regular income that you can save, you do significantly better with regular savers.

Stompa wrote: »

But using an interest paying feeder account to regularly pay into a RS (paying a higher rate of interest than the feeder account) works too.

Regular Savers deliver maximum return when they are fed by regular income. Any other approach - including your own - are sub-optimal.

JamesRobinson48

polymaff wrote: »

Regular Savers deliver maximum return when they are fed by regular income. Any other approach - including your own - are sub-optimal.

I feed my RSAs, not with income (I spend most of that), but with the proceeds of maturing RSAs. Every month I have more than £10k cash outflow going into RSAs, funded by a similar amount of cash inflow from maturing RSAs. Works pretty well for me.

Eco_Miser

polymaff wrote: »

Regular Savers deliver maximum return when they are fed by regular income. Any other approach - including your own - are sub-optimal.

However, if the blended rate of a Regular Saver and a feeder account beats the best available rate from a 'lump sum' account, whether fixed term or instant access, the RS & feeder is the optimal approach for the lump sum.

Putting it another way, saving my income in Regular Savers (optimal according to you) and living off my savings has exactly the same effect as living off my income, and recycling my savings into Regular Savers.

polymaff

JamesRobinson48 wrote: »

I feed my RSAs, not with income (I spend most of that), but with the proceeds of maturing RSAs. Every month I have more than £10k cash outflow going into RSAs, funded by a similar amount of cash inflow from maturing RSAs. Works pretty well for me.

Then you are acting as I suggest. Well done.