📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Regular Saver Thread **New and Restarted**

Options
1342343345347348352

Comments

  • 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?
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    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
    polymaff Posts: 3,950 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 February 2020 at 8:50PM
    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.
  • 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 choose the rooms that I live in with care,
    The windows are small and the walls almost bare,
    There's only one bed and there's only one prayer;
    I listen all night for your step on the stair.
  • polymaff 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
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    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
    polymaff Posts: 3,950 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 February 2020 at 9:34PM
    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.
  • soulsaver
    soulsaver Posts: 6,619 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 17 February 2020 at 2:50AM
    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
    10_66 Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.1K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.