Regular Saver Thread **New and Restarted**

schiff

polymaff wrote: »

@Psyduck


Just follow my initial, concise and comprehensive advice, complemented by Badger09's confirmation.


Just that one, unthanked, post - Psyduck!

I've thanked it polymaff to ease your pain

I wonder if Thanks on MSE forums are going to be akin to Likes on Facebook, where you feel suicidal if you haven't had 50 likes before breakfast!

polymaff

Psyduck1980 wrote: »

So you can actually deposit GBP5,200 in the 12 month period (13 x GBP400) rather than GBP4,800 (12 x GBP400)?

Yes.


Just do what I said in my comprehensive, concise - and as yet, unthanked - reply!


Funny old world, MSE...:(

polymaff

Rollinghome wrote: »

You can, but don't expect the extra interest to change your life given that the final payment will only earn interest for a matter of weeks at best.

You might want to think again about that.

polymaff

polymaff wrote: »

@Psyduck

Just follow my initial, concise and comprehensive advice, complemented by Badger09's confirmation.

Just that one, unthanked, post - Psyduck!

schiff wrote: »

I've thanked it polymaff to ease your pain

Right sentiment, wrong post. When I said initial I meant it. Rewind to post 2970 - now thanked by a passing Samaritan..:)

Psyduck1980

schiff wrote: »

I wonder if Thanks on MSE forums are going to be akin to Likes on Facebook, where you feel suicidal if you haven't had 50 likes before breakfast!

It would seem that way. :rotfl:

Rollinghome

polymaff wrote: »

You might want to think again about that.

Well I don't want to think about it too long because even the total additional interest on regular savers that allow only very small sums, rather than either a fixed rate or easy access product, is hardly worth excessive toil is it? Regular savings products are a smart way for banks to attract punters with an eye-catching headline rate that costs them very little.

But if you've got time on your hands please feel free to tell all how much you think that last payment made a few days or weeks before the end of the term will enrich the saver.


(PS. Don't want you to feel unloved so I've given you a 'thanks' too. )

eskbanker

Rollinghome wrote: »

But if you've got time on your hands please feel free to tell all how much you think that last payment made a few days or weeks before the end of the term will enrich the saver.

I could be wrong but believe the point that polymaff was making was that the extra interest earned by optimising payments doesn't all come from the 13th payment but also from the rescheduling of all the earlier months' payments to the start of each month instead of the 25th, which has the effect of increasing the balance in the account by up to £400 (between the 1st and 25th of each month) all the way from week 2 onwards.

But yes, it'll correspondingly reduce interest earned in any feeder account and no, it's still not life-changing!

Emily_Joy

Psyduck1980 wrote: »

So you can actually deposit GBP5,200 in the 12 month period (13 x GBP400) rather than GBP4,800 (12 x GBP400)?

In the age of Faster Payments why on earth wouldn't it clear on the same day? Even if it went in on the next working day (28/10/19) what's the issue? I don't understand Lloyds' preoccupation with the 25th of the month. The only reason I was going to make my first payment on the 25th is because it's payday for me. I would have thought customers were able to fund once in the period 25/10/19 to 24/11/19 and so on in subsequent months. Do they use a calendar month rather than a rolling month?

This last bit sort of makes sense but given we're in the era of faster payments and 25/02/20 falls on a Tuesday this is irrelevant isn't it?

I seem to have recollection from a few months ago that in the end of the term the account is renewed and if you make 13'th payment, you won't be able to top up the new account in the same month. Which actually means you loose 2.5% interest on the amount deposited for entire year...


Please correct me if I am wrong!

polymaff

Emily_Joy wrote: »

I seem to have recollection from a few months ago that in the end of the term the account is renewed and if you make 13'th payment, you won't be able to top up the new account in the same month. Which actually means you loose 2.5% interest on the amount deposited for entire year...

Please correct me if I am wrong!

That is only true if you take up their recently-introduced offer to roll over the previous RS. Let it expire and then open a new RS and there is no problem with same-month payments.

polymaff

eskbanker wrote: »

I could be wrong but believe the point that polymaff was making was that the extra interest earned by optimising payments doesn't all come from the 13th payment but also from the rescheduling of all the earlier months' payments to the start of each month instead of the 25th, which has the effect of increasing the balance in the account by up to £400 (between the 1st and 25th of each month) all the way from week 2 onwards.

Yep, that's it. You earn more interest by having more money deposited for longer. Have the latter 12 out of 13 payments in there for up to a month longer and the extra return is worth having - increasing the interest premium by up to 7%.

Incidentally the 13th payment is only in there for less than the month, as Rollinghome says - but if you don't use this scheme, then the 13th payment earns you absolutely nothing - because you never make it.

Now, get clickin'...;)