Regular Saver Thread **New and Restarted**

glider3560

abz88 said:

Can't see an update on this (although it could be hidden in between comments on people's thoughts on the sites new layout), but Saffron RS is now down to 2.5% as of Thursday 6th but allows a pay in of £500
https://www.saffronbs.co.uk/savings/immediate-access-savings-accounts/12-month-fixed-rate-regular-saver-issue-5-gr3/

Looks like a new issue (Issue 5).  Branch only opening, but no residency requirements (unlike the "Small Saver").

abz88

glider3560 said:

abz88 said:

Can't see an update on this (although it could be hidden in between comments on people's thoughts on the sites new layout), but Saffron RS is now down to 2.5% as of Thursday 6th but allows a pay in of £500
https://www.saffronbs.co.uk/savings/immediate-access-savings-accounts/12-month-fixed-rate-regular-saver-issue-5-gr3/

Looks like a new issue (Issue 5).  Branch only opening, but no residency requirements (unlike the "Small Saver").

My Issue 3 is due to mature next month, would have been happy enough with 2.5% giving other rates are dropping to the 2% mark, but if it's branch only then not one I'll be able to use unless they make an exception for existing customers like with previous issues.

caroline1973lefty

Hi there, sorry if this is a silly question but my head is melting!  I’ve got about £6k in a Natwest Savings Builder account (which pays 1.5% apr on balances up to 10,000, for any month where balance increases by £50). At the moment I can afford to save more, possibly 500 or so month - is it worth me now opening a regular saver with say Coventry that pays 2.5%, and just paying 50 to Natwest to get the monthly bonus interest? Or would I get more (in the short term) if I stashed it all on top of the larger sum. Importantly, I am only really thinking short term right now cos I might need all this money in the next few months, not sure at the moment, but both Natwest and Coventry are fairly penalty fee (just lose a month’s interest). I guess it’s not big financial difference given sums involved but very little helps and I’d like to think I’m doing sensible thing (for once...)

caroline1973lefty

caroline1973lefty said:

Hi there, sorry if this is a silly question but my head is melting!  I’ve got about £6k in a Natwest Savings Builder account (which pays 1.5% apr on balances up to 10,000, for any month where balance increases by £50). At the moment I can afford to save more, possibly 500 or so month - is it worth me now opening a regular saver with say Coventry that pays 2.5%, and just paying 50 to Natwest to get the monthly bonus interest? Or would I get more (in the short term) if I stashed it all on top of the larger sum. Importantly, I am only really thinking short term right now cos I might need all this money in the next few months, not sure at the moment, but both Natwest and Coventry are fairly penalty fee (just lose a month’s interest). I guess it’s not big financial difference given sums involved but very little helps and I’d like to think I’m doing sensible thing (for once...)

“Every” little helps, I meant!!

oli356

Silly question .. how come some accounts are for certain post codes and have to be opened in branch? What is the reason that they decide to only offer the services for 'locals'?

veryintrigued

oli356 said:

Silly question .. how come some accounts are for certain post codes and have to be opened in branch? What is the reason that they decide to only offer the services for 'locals'?

Generally genuinely mutuals helping the locals economy.

Able to offer products for a small amount of (often more loyal) customers in a controlled manner rather than getting stampeded by the MSE massive.

As an aside the levels of service are generally brilliant and the levels of friendliness a refreshing change.

Often great.

Probably get prosecuted for some regionalistic hate crime in today's climate for not offering to all and sundry.

abz88

glider3560 said:

abz88 said:

Can't see an update on this (although it could be hidden in between comments on people's thoughts on the sites new layout), but Saffron RS is now down to 2.5% as of Thursday 6th but allows a pay in of £500
https://www.saffronbs.co.uk/savings/immediate-access-savings-accounts/12-month-fixed-rate-regular-saver-issue-5-gr3/

Looks like a new issue (Issue 5).  Branch only opening, but no residency requirements (unlike the "Small Saver").

It looks like "Only hold one Regular Saver or Small Saver with Saffron Building Society at a time" those in the Small Saver qualifying postcodes will have to chose between the two as well.

polymaff

caroline1973lefty said:

Hi there, sorry if this is a silly question but my head is melting!  I’ve got about £6k in a Natwest Savings Builder account (which pays 1.5% apr on balances up to 10,000, for any month where balance increases by £50). At the moment I can afford to save more, possibly 500 or so month - is it worth me now opening a regular saver with say Coventry that pays 2.5%, and just paying 50 to Natwest to get the monthly bonus interest? Or would I get more (in the short term) if I stashed it all on top of the larger sum. Importantly, I am only really thinking short term right now cos I might need all this money in the next few months, not sure at the moment, but both Natwest and Coventry are fairly penalty fee (just lose a month’s interest). I guess it’s not big financial difference given sums involved but very little helps and I’d like to think I’m doing sensible thing (for once...)

A non-trivial issue!  Do I read the Natwest Builder correctly as an indefinite account feature that, when you choose to stop, you lose the final month's interest?  Not good news if so, in that that particular month's interest would have been the biggest interest payment.

As for your question - and assuming you crash out just after an interest event, a month with the Coventry - one unit of interest is gained, and then lost, so no interest arising.

Two months with the Coventry, you retain the original first (1) unit of interest but not the second month's two units of interest - so the effective interest rate is one third of the 2.5%.

Three months. you retain three (1+2) units of interest but not the three units of the third month - half the 2.5%.

Four months, you retain six (1+2+3) units of interest but sacrifice  the fourth month's four units.  Six out of ten implies 6/10 of 2.5% - i.e. 1.5%.  From then on the Coventry account pulls ahead.

Crashing out any other time is just a messier version of the above.

E&OE

schiff

polymaff said:

caroline1973lefty said:

Hi there, sorry if this is a silly question but my head is melting!  I’ve got about £6k in a Natwest Savings Builder account (which pays 1.5% apr on balances up to 10,000, for any month where balance increases by £50). At the moment I can afford to save more, possibly 500 or so month - is it worth me now opening a regular saver with say Coventry that pays 2.5%, and just paying 50 to Natwest to get the monthly bonus interest? Or would I get more (in the short term) if I stashed it all on top of the larger sum. Importantly, I am only really thinking short term right now cos I might need all this money in the next few months, not sure at the moment, but both Natwest and Coventry are fairly penalty fee (just lose a month’s interest). I guess it’s not big financial difference given sums involved but very little helps and I’d like to think I’m doing sensible thing (for once...)

A non-trivial issue!  Do I read the Natwest Builder correctly as an indefinite account feature that, when you choose to stop, you lose the final month's interest?  Not good news if so, in that that particular month's interest would have been the biggest interest payment.

As for your question - and assuming you crash out just after an interest event, a month with the Coventry - one unit of interest is gained, and then lost, so no interest arising.

Two months with the Coventry, you retain the original first (1) unit of interest but not the second month's two units of interest - so the effective interest rate is one third of the 2.5%.

Three months. you retain three (1+2) units of interest but not the three units of the third month - half the 2.5%.

Four months, you retain six (1+2+3) units of interest but sacrifice  the fourth month's four units.  Six out of ten implies 6/10 of 2.5% - i.e. 1.5%.  From then on the Coventry account pulls ahead.

Crashing out any other time is just a messier version of the above.

E&OE

schiff

schiff said:

polymaff said:

A non-trivial issue!  Do I read the Natwest Builder correctly as an indefinite account feature that, when you choose to stop, you lose the final month's interest?  Not good news if so, in that that particular month's interest would have been the biggest interest payment.

I've got one of these Builder accounts - to pay off a stooz in October 2021. I've not fully researched it yet but they have well-defined dates from which a month runs to and from. By withdrawing the bulk of the balance the day after the monthly interest is credited, waiting a month and re-depositing I think you can keep it going, only sacrificing a month's interest, which I assume you will be able to claw back the bulk of the loss in an account paying 1% to 1.3% where you store the withdrawn funds.