Regular Savings Accounts: The Best Currently Available List!

mark49152

I'm trying to figure out an easy way to calculate how much it's worth to do each regular saver account. Worked out that the interest earned would be the same as having the maximum annual sum invested for just 6.5 months, assuming a 12 month term.

So assuming a feeder account of 3.1% the total gain from using a regular saver is:-

Gain = 6.5 * Monthly * (Rate - 3.1%)

So feeding £500/month into the Cheshire at 5% would be worth:-

6.5 * £500 * 1.9% = £62 gained

Or the First Direct 8% account at £300/month:-

6.5 * £300 * 4.9% = £95 gained

Is that correct? Can anyone fault my maths?

Special_Saver2

If you click on the following link, you will find the MSE "Regular Savings Calculator" which you can use to do the calculation for you.

SS2

mark49152

Thanks SS2. I guess I'm struggling to see the point in drip-feeding. The £50 from Cheshire (after tax) might be worth the drive to a branch, since they're local. But the best of the rest seem to be typically 4% and £250 which is worth just £12 gained over the year, after tax.

Also, that's only 3.6% AER on a maximum £3000. Since the money has to be tied up for the year (you don't even exceed half the benefit until 9 months in) doesn't it make more sense to stick it in a 1 or 2 year bond at similar (or higher) rate? That also avoids the upper limit or the need for multiple accounts and lots of hassle.

For genuine regular (new) savings these accounts look like as good a place as any to put your new money, but I'm interested in how many people drip-feed money they already have, and how they do it to maximize gains and minimize hassle. What do people on this forum do? Do you drip-feed these 4%/£250 accounts? How many accounts?

typistretired

Special_Saver2 wrote: »

If you click on the following link, you will find the MSE "Regular Savings Calculator" which you can use to do the calculation for you.

SS2

The calculater is a couple of pounds out!

My First Direct Regular Saver has just matured I paid the maximum £300 in each month totalling £3600. I received net interest of £125.41 plus another £5 interest for the delay in changing my savings from the regular saver account to a single savings account as it still continues to pay 8% (a weekend was involved). £130.41 in total.

johnmoney05

mark49152 wrote: »

For genuine regular (new) savings these accounts look like as good a place as any to put your new money, but I'm interested in how many people drip-feed money they already have, and how they do it to maximize gains and minimize hassle. What do people on this forum do? Do you drip-feed these 4%/£250 accounts? How many accounts?

I started with one regular saver account a few years ago. Now I might have just under 20. It is hassle. But it does help me to save money.

mongmoney

Evening all,
i just wanted to share that i began using a regular savings account for my annual insurances, car and house, that come up in august and september. i feel this is a better way of ensuring that i budget properly. i'm going to find one for the annual holiday costs and start it in july, for next year.
Budgeting properly takes time but reaps so many benefits.
Happy MSEing!
Mongy

IanIan

I use my regular savers for school fees.

I do take the point that the extra interest gained might be outweighed by the hassle etc of managing lots of accounts (I have 13 regular saver accounts on the go at the moment) but for me, the real benefits are that the money is locked away, I can't access it and the accounts instil a savings discipline in me.

I try to open accounts in August, December and April, in order that they mature when the termly bills arrive. I also make full use of my cash ISA allowance (2.97% which equals 4.95% to me as a higher rate taxpayer). In addition, I have an instant access account with Saffron (no longer available to new customers) which pays 3.15% at the moment. The average rate across all my accounts is 3.71%. I think that's quite good.

Another benefit, perhaps, is that I have been able to maintain accounts that are no longer available to new customers. Perhaps the best such accounts are the Summertime Saver and the Santa Saver with Chorley Building Society. I can only save £150 per month in each of those accounts, but they pay 4% gross and I can access the money in May and November each year, just in time for the school fees bill!

I'm sure that regular savings accounts aren't ideal for everyone, but they are ideal for me.

dtsazza

I've been looking at the Derbyshire Platinum monthly saver, and I notice from their T&Cs that:

3.3 If your accountis open at the end of an account year and in that
account year you have complied with the following:
(a) you have made the qualifying payments under Special
Condition 2.3 in all or all but one of the months during which
your account was open;
(b) you have not made more than one withdrawal in such a period
you will qualify for interest at the bonus rate for that account year.

Notice that clause (a) lets you breach the limits in Special Condition 2.3 (which just sets the min and max monthly amounts) for one month in the year, without penalty.

So it looks like you could operate this as a one-year account by depositing a large lump sum in month 1 (oops, breached the limit for that month), then paying the minimum for the remaining 11 months. You'd still be eligible for the 5% "bonus rate" instead of the 1% you get if you breach the conditions.

apt

They have the right to close your account if you exceed £500 deposit in a month.

nearlyretired2004

Santander Loyalty Fixed Rate Monthly Saver (Issue 1)

Interest rate: 5% gross p.a. fixed
Monthly payment: £20-£250
Miss any payments: Yes, but your savings only get 0.1% for that month
Penalty-free withdrawals: No withdrawals at all prior to account maturity

Age of applicant: Not stated
How to open account: In branch or by telephone
Special conditions:You open your account without paying in any money. You set up a standing order to start the following month,



.....The last bit highlighted in RED - is this in the Ts and Cs - otherwise why not pay in immediately?

Thanks