How many Regular Savings Accounts do you have?

ozaz

EachPenny wrote: »

Why artificially limit yourself to only 12? As some accounts allow a smaller monthly deposit you might be short on maturing funds in one month. And you might be missing out on good opportunities if you are content with only 12. Most accounts don't need to be funded with the full amount each month (but check the T&C's) so having extra accounts is worthwhile even if you cannot fully fund them all.

Because I would suggest you shouldn’t run before you can walk. 12 seems a reasonable initial target to aim for if just starting out (first year of building a portfolio of regular savers). Can then decide if you want to add more into the mix in year 2 and beyond.

EachPenny

ozaz wrote: »

Because I would suggest you shouldn’t run before you can walk. 12 seems a reasonable initial target to aim for if just starting out (first year of building a portfolio of regular savers). Can then decide if you want to add more into the mix in year 2 and beyond.

In many financial situations that is good advice. But in terms of RS accounts you are dealing with a very low risk product (assuming you are sticking to UK accounts with FSCS protection ) - the worst situation I can imagine is failing to comply with the T&C's on an account and missing out on an interest payment (or bonus). The accounts which have such restrictions are few and far between.

The work required to operate multiple RS accounts is not difficult. Open an account, set up a standing order, diarise the date the account matures (if you don't trust the bank to tell you). Doing this for (say) two new accounts per month is not hard, and would result in you having 24 accounts by the end of the first year.

Sea_Shell

patientperson wrote: »

Current RS tally = 77

I'm intrigued...care to elaborate??

Sapphire

I have two:

1 x Nationwide
1 x Virgin

I don't want the hassle of (or the time spent in) keeping an eye on such accounts. Too busy earning money working, and need any spare time for other things. The conditions also put me off somewhat, like having to open other accounts with a provider, and I don't have time to read about terms and conditions, etc.

ozaz

EachPenny wrote: »

In many financial situations that is good advice. But in terms of RS accounts you are dealing with a very low risk product (assuming you are sticking to UK accounts with FSCS protection ) - the worst situation I can imagine is failing to comply with the T&C's on an account and missing out on an interest payment (or bonus). The accounts which have such restrictions are few and far between.

The work required to operate multiple RS accounts is not difficult. Open an account, set up a standing order, diarise the date the account matures (if you don't trust the bank to tell you). Doing this for (say) two new accounts per month is not hard, and would result in you having 24 accounts by the end of the first year.

I wasn't thinking about risk, I was thinking about admin and time.

Controlling the cash flow through multiple accounts may be trivially easy for some, but for individuals not used to it this might initially represent a challenge. So for these individuals starting with a smaller number of accounts equally spread across the year would seem senisble to me.

In my case, controlling the cash flow of already-open accounts would not be a challenge. But if I need to go to a branch to open an account (or to open a new current account to gain access to the regular saver) finding time to do one a month would be a challenge, let alone two.

EachPenny

ozaz wrote: »

Controlling the cash flow through multiple accounts may be trivially easy for some, but for individuals not used to it this might initially represent a challenge. So for these individuals starting with a smaller number of accounts equally spread across the year would seem senisble to me.

Perhaps, for the first few accounts. But after opening and starting to fund three or four, any initial challenge should have been resolved.

ozaz wrote: »

In my case, controlling the cash flow of already-open accounts would not be a challenge. But if I need to go to a branch to open an account (or to open a new current account to gain access to the regular saver) finding time to do one a month would be a challenge, let alone two.

These are constraints, and whilst perfectly valid, shouldn't be the basis of deciding that one account opening/maturing per month is...

ozaz wrote: »

a good strategy

...except in cases where people have similar constraints.

As masonic points out, the priority in a good strategy should be obtaining and filling the accounts that pay the highest rate of interest - this is complicated by them being linked to holding current accounts.

Another flaw with the 'one per month' approach is that some accounts - Virgin's for example - often run for more than 12 months - this might leave you with no maturing account in a particular month in order to fund the other accounts. However, although Virgin's RS accounts don't pay the best interest rates, they do allow instant access to withdraw funds without penalty.

Therefore for some people a 'good strategy' might be to have a set of 12 RS accounts operating on a rolling maturity basis, plus some additional RS accounts allowing access (like Virgin's) to store some of your emergency fund. It all depends on individual circumstances. There is no single 'good strategy' for all.

Sea_Shell

Agree re: the VRS's as cashflow account. We have 7 RS's maturing in December, 2 of which are VRS's, but we'll be a bit short at beginning of October, so will "plunder" the December one to top up others (including some 5% ones)

aj23_2

I'm sorry but I don't see how you can have 77 regular savers.

Ones like Leeds BS barred you from holding more than one of issues 5-18, meaning you could only have one of these issues until it matured.

aj23_2

ozaz wrote: »

:eek: I didn't anticipate so many would have 10+ (the majority selection so far)
Here's me wondering if I can bother with the hassle of going from 3 to 4 :laugh:

Would be interesting if those who have 10+ could comment on their strategy to managing so many regular savers (especially anyone with 20+). Also curious as to the lowest interest rates you bother with on regular savers. It seems to me apart from the top 10 options, everything is below 3%, and a lot of these accounts are a bit of a hassle to open - require in-branch opening: https://www.money.co.uk/savings-accounts/regular-savings.htm

I don't believe that the vast majority have that many tbh. Most providers bar you from holding multiple issues at the same time. I believe Virgin is an exception here, but Leeds don't let you hold more than one at a time.

I'd like to know if these people with 10, or 20, even 77, are actually funding each one every month, or if some are dormant accounts that have matured but they are just keeping. Also if they are depositing the maximum monthly limit. If you are only depositing £50 a month, then yeah I can see how you'd have 10-20. But £250-£500 a month for 10-20 accounts, I don't think so.

System

OOOOOOH , juicy thread. Some of the numbers are ridic.


I've got 10.


2 - Virgin Money,
2 - YBS,
1 - Leeds Building Society,
1 - Chorley
1 - Principality
1 - Halifax
1 - Lloyds
1- Principality


All funded by S/O monthly


1 depositing max monthly limit.