Regular Saver Thread **New and Restarted**

colsten

onwards&upwards said:

Can anyone help with my maths/logic on this?

I have £5000 to save.  £1500 will go in a TSB current account to get 3%.  

£300 a month will go in a First Direct RS at 2.75%
£500 a month will go in a Coventry BS RS at 2.5%

After 4 months of paying into the Coventry and 5 months of paying into the FD the £5000 will all be paid in.  Am I right in thinking it’s better to lock money away in the Coventry at 2.5% sooner rather than leaving it at a measly 1.35% in Marcus for longer so I can put it in the FD at 2.75% later on, right?   My brain is deserting me on the actual numbers but this feels right!

The FD T&Cs state that you need to pay at least £25 each month into your FD Saver. They don't say what happens if you don't. FD don't allow you to change the SO amount online or through the app, either.
You should be able to withdraw money from your Coventry RS and move it over to your FD current account, though.

polymaff

onwards&upwards said:

polymaff said:

Every day you have money in at 2.5% you'll earn more interest than at 1.35%. Ditto 2.75%.

So if you are happy with the terms of a higher-rate account, dribble as fast as you are permitted.

A point to note is that the FD is a fixed rate account - so wait and with rates falling, you might lose out !

Thanks, sorry not sure what you mean about losing out if rates fall?  Surely a fixed rate is a protection against that?

Yes, but the rate is set when you open the account. I thought that you might be thinking of delaying opening the FD. My misinterpretation.

As I wrote, the strategy is to get money into the the highest rate accounts as fast as you can - providing you are happy with the terms of the accounts.

trickydicky14

Santander RS,
My RS is just about to end but as the rate has now gone down to 2% for new accounts, I wish to call it a day.
How do I stop Santander doing an auto roll over? do I have to ring them or just stop my DD end of.

onwards&upwards

polymaff said:

onwards&upwards said:

polymaff said:

Every day you have money in at 2.5% you'll earn more interest than at 1.35%. Ditto 2.75%.

So if you are happy with the terms of a higher-rate account, dribble as fast as you are permitted.

A point to note is that the FD is a fixed rate account - so wait and with rates falling, you might lose out !

Thanks, sorry not sure what you mean about losing out if rates fall?  Surely a fixed rate is a protection against that?

Yes, but the rate is set when you open the account. I thought that you might be thinking of delaying opening the FD. My misinterpretation.

As I wrote, the strategy is to get money into the the highest rate accounts as fast as you can - providing you are happy with the terms of the accounts.

Ah I see, no the account is already open.  Thanks though. 

colsten

trickydicky14 said:

Santander RS,
My RS is just about to end but as the rate has now gone down to 2% for new accounts, I wish to call it a day.
How do I stop Santander doing an auto roll over? do I have to ring them or just stop my DD end of.

I think just cancelling your SO (not DD) should do the trick. You can do this online or in the app.

polymaff

There doesn't seem to be any point in closing the account though.  It is just an annually-fixed rate, annual interest. indefinite term, easy access, SO-funded savings account with a maximum deposit per month limit.  Maybe in 6 months time 2% fixed will look very attractive.

How things have changed since the rigid T&Cs of SAYE accounts.

karlie88

I'm going to mention this once...with the recent change to MSE forum plus the rate being lowered to 2% it's time to let this little secret out.
Santander RS
You can actually add around £2650 into the account from day 1 and it'll earn 2% (or whatever the interest rate is/was when you opened it). Cancel/ensure there's no SO. Once it's matured and converted to an easy saver, open a new RS and add the full amount mentioned above.
Been doing this ever since the RS was launched. All paid correct interest i.e. 5%, 3% etc. on full balance from day 1.
Please don't quote.

soulsaver

Got it, Karlie thanks, you can delete it now...:) You know that if msers wade in en masse, it'll likely spotted & stopped...?

10_66

soulsaver said:

Got it, Karlie thanks, you can delete it now...:) You know that if msers wade in en masse, it'll likely spotted & stopped...?

Why?  So only you can benefit and other's can't?  Very patronising to advise karlie88 to delete.

JamesRobinson48