The Top Easy Access Savings Discussion Area

Consumerist

polymaff said:

. . . Why are rates for RSs generally higher than Easy Access?

Although this was probably a rhetorical question, I suspect it's because banks etc. can limit their exposure to interest payments whilst tempting in new customers who can be approached to buy other financial services in the longer run.

There's no reason why we can't take advantage of the opportunity it presents.

I-LOV-MONEY

Ha.  I have just seen a 'problem' with the Regular Savers accounts.   M&S require you to switch your banking to them.  I have no wish to do so - so that probably makes me ineligible.   HSBC say a 'current account' with them.  Can I open an account, with say £5 and just leave it there?   First Direct want you to have another product with them.  I already have an account with them1

polymaff

Consumerist said:

polymaff said:

. . . Why are rates for RSs generally higher than Easy Access?

Although this was probably a rhetorical question, I suspect it's because banks etc. can limit their exposure to interest payments whilst tempting in new customers who can be approached to buy other financial services in the longer run.

There's no reason why we can't take advantage of the opportunity it presents.

Mmm. Well that's why I mentioned marketing.  I've chatted with managers in the various institutions and, except for Virgin, they all reckoned that the idea - get them in with a loss-leader then sell them other products - was very out-of-date.

One of them mentioned the word "Vultures"

I think that he meant us. ...

RG2015

I-LOV-MONEY said:

Ha.  I have just seen a 'problem' with the Regular Savers accounts.   M&S require you to switch your banking to them.  I have no wish to do so - so that probably makes me ineligible.   HSBC say a 'current account' with them.  Can I open an account, with say £5 and just leave it there?   First Direct want you to have another product with them.  I already have an account with them1

1) M&S. Yes, you need to switch.
2) HSBC. Yes, I keep £1 in my HSBC account
3) First Direct. No problem you are already eligible and will get 2.75% and in 12 months you will have a lump sum of about £3,653. 

Eco_Miser

I-LOV-MONEY said:

Ha.  I have just seen a 'problem' with the Regular Savers accounts.   M&S require you to switch your banking to them.  I have no wish to do so - so that probably makes me ineligible.   HSBC say a 'current account' with them.  Can I open an account, with say £5 and just leave it there?   First Direct want you to have another product with them.  I already have an account with them1

Read the forum, you'll find it all discussed many times. M&S do not require you to switch your banking to them, they require you to switch a current account to them. There's a difference.

HSBC are a bit fussy about who they allow to bank with them, but in theory you could indeed just bung £5 in and leave it.  Many have done just that with First Direct to qualify for waiver of fees (I think they've dropped the fees now).

Many of the RSs and interest paying Current Accounts (when they were worthwhile) had requirements which were much less onerous than they first appeared - if you applied lateral thinking to the letter of the T&Cs, or just carefully read the relevant threads on MSE forums.

Consumerist

I-LOV-MONEY said:

Ha.  I have just seen a 'problem' with the Regular Savers accounts.   M&S require you to switch your banking to them.  I have no wish to do so - so that probably makes me ineligible.   HSBC say a 'current account' with them.  Can I open an account, with say £5 and just leave it there?   First Direct want you to have another product with them.  I already have an account with them1

It is true to say that the 'best buys' tend to come with strings attached. I, personally, have avoided them like the plague.

Others are available but pay less. I don't know what their current rates are but some suggestions are Coventry BS and Virgin Money. I already had a Lloyds account so that was a given for me.

Sadly, the good ones tend to go quickly.

polymaff

Eco_Miser said:

I-LOV-MONEY said:

Ha.  I have just seen a 'problem' with the Regular Savers accounts.   M&S require you to switch your banking to them.  I have no wish to do so - so that probably makes me ineligible.   HSBC say a 'current account' with them.  Can I open an account, with say £5 and just leave it there?   First Direct want you to have another product with them.  I already have an account with them1

M&S do not require you to switch your banking to them, they require you to switch a current account to them. There's a difference.  Just annual will do.

You just beat me to that point. Another plus about M&S is that direct debits do not have to be monthly ones. Once a year will do.

Consumerist

polymaff said:

One of them mentioned the word "Vultures"

I think that he meant us. ...

Nah! They were talking about themselves.

Consumerist

You could have a look at <MSE's best buys> :

colsten

@I-LOV-MONEY I would recommend you have a good read of the Regular Savings article, and have play-about with the RS Calculator to get a proper appreciation of the advantages of Regular Savers. 

If you have questions left after working through the above, please add any further RS questions to the Regular Savers thread so this one can go back to discussing easy access accounts..