Regular Saver Thread **New and Restarted**

arsenalboy

polymaff wrote: »

Trickle-feeding a 2% RS from a 1.5% instant access is the thin end of the wedge...:)



Why?

surely in todays miserable interest rates a .5% increase is not to be sneezed at?

1.5% to 2.0% is a 33% increase on your return.

Both 1.5% and 2% are miserable rates compared with historic rates, but it is where we are.

surreysaver

arsenalboy wrote: »

polymaff wrote: »

Trickle-feeding a 2% RS from a 1.5% instant access is the thin end of the wedge...:)



Why?

surely in todays miserable interest rates a .5% increase is not to be sneezed at?

1.5% to 2.0% is a 33% increase on your return.

Both 1.5% and 2% are miserable rates compared with historic rates, but it is where we are.

Yes. By saying you wouldn't transfer money from an account paying 1.5% to one paying 2%, is like saying you wouldn't transfer money from an account paying 15% to one paying 20%

Eco_Miser

surreysaver wrote: »

Yes. By saying you wouldn't transfer money from an account paying 1.5% to one paying 2%, is like saying you wouldn't transfer money from an account paying 15% to one paying 20%

NO!
1.5% to 2% is 0.5 percentage points, £5 on £1k.
15% to 20% is 5 percentage points, £50 on £1k.

Also the context was Regular Savings, so just £250 a month usually, not thousands in a lump sum.

Special_Saver2

Hi Folks,

Here is this weekend's update. I note the new Nottingham BS Panthers Regular Saver account but with 1.5% interest, it is not good enough to qualify for the list on page 1 (as per the criteria set out in post 1). There is nothing else that I can see that has changed this week.



I will do the next update next weekend.

SS2

---

For those new to this thread, the first few posts are constantly updated and are on the first page

polymaff

arsenalboy wrote: »

polymaff wrote: »

Trickle-feeding a 2% RS from a 1.5% instant access is the thin end of the wedge...:)



Why?. ... a .5% increase

You don't get an extra 0.5%. As the average £ spends equal time at each rate you get the mean of the two rates - i.e. 1.75% - so only 0.25% extra.

polymaff

surreysaver wrote: »

arsenalboy wrote: »

Yes. By saying you wouldn't transfer money from an account paying 1.5% to one paying 2%, is like saying you wouldn't transfer money from an account paying 15% to one paying 20%

I can remember getting interest rates between 15 and 20% -- about a third of a century ago...:)

where_are_we

The "extra" you get by funding regular savers is probably set to increase. A lot of Regular Savers have a fixed interest rate for a year and I can`t remember many variable rate regular savers reducing their interest rate during their one year term. Yes - they often reduce interest rates when you renew or pull it all together like Nationwide have done. However the interest rate you can achieve from your instant access funding account is generally set to reduce this year from 1.5% to 1.35% or lower.
Another way of increasing the differential for those with smaller cash balances is to fund a RS for the first couple of months only and open a new one periodically and again just fund it for the first couple of months (I think most RS`s allow this?). However this is more work.

colsten

where_are_we wrote: »

Another way of increasing the differential for those with smaller cash balances is to fund a RS for the first couple of months only and open a new one periodically and again just fund it for the first couple of months (I think most RS`s allow this?). However this is more work.

Most providers actually do not allow to hold more than one RS of the same issue, or even more than one RS with them overall, at any one point in time. Also, many require a minimum monthly deposit.

Fingerbobs

where_are_we wrote: »

Another way of increasing the differential for those with smaller cash balances is to fund a RS for the first couple of months only and open a new one periodically and again just fund it for the first couple of months (I think most RS`s allow this?). However this is more work.

Sorry if I'm being dim, but what advantage would this impart?
Why not just add money to the same RS in subsequent months instead of opening a new one?

polymaff

where_are_we wrote: »

... Another way of increasing the differential for those with smaller cash balances is to fund a RS for the first couple of months only and open a new one periodically and again just fund it for the first couple of months (I think most RS`s allow this?). However this is more work.

Not the HSBC-serviced RSs - and they are the best at present, by far.


Frankly, the easier and less time-consuming way to generate income comparable with these 0.25% to 0.5% differentials on small sums is to shop carefully.


And the savings are all ISA - tax free.


Where ISA is "I Shop Around!"...;)