Regular Savings Accounts: The Best Currently Available List!

mad_rich

I'm planning on opening the 2% regular saver and shuffling in the full £1k per month. Do many other people have one of these? I was wondering how it works with withdrawals?

I plan to increase the balance by £1k every month until either I run out of money to feed it with, or I need to withdraw some cash.

Is it just a month's worth of interest you lose? (i.e. build up £18k balance over year and a half, earning 2%. Then withdraw, say, £5k in one go. I'd earn 0.25% in the 19th month, but go back to 2% as long as I start feeding it again. Is that right?)

Just trying to work out if it's suitable for me.

It will effectively become an instant access account, which I *probably* won't need access to in the near-term, but I'd like the option. (And if I do, I'll make sure I take it out in one month and then either feed it again or move to a different account.)

Steve_xx

mad_rich wrote: »

I'm planning on opening the 2% regular saver and shuffling in the full £1k per month. Do many other people have one of these? I was wondering how it works with withdrawals?

I plan to increase the balance by £1k every month until either I run out of money to feed it with, or I need to withdraw some cash.

Is it just a month's worth of interest you lose? (i.e. build up £18k balance over year and a half, earning 2%. Then withdraw, say, £5k in one go. I'd earn 0.25% in the 19th month, but go back to 2% as long as I start feeding it again. Is that right?)

Just trying to work out if it's suitable for me.

It will effectively become an instant access account, which I *probably* won't need access to in the near-term, but I'd like the option. (And if I do, I'll make sure I take it out in one month and then either feed it again or move to a different account.)

No.

Interest depends on how much you increase the balance in a calendar month. If you decrease it by 5k in any one month then no interest will be payable in that month.

mad_rich

Yes, that's what I meant.

One month, I take a chunk of cash out, and it only pays 0.25% that month, because my balance hasn't increased. But as long as I start feeding it again, the 2% interest should kick in again?

Archi_Bald

mad_rich wrote: »

But as long as I start feeding it again, the 2% interest should kick in again?

As long as you start feeding it again with the right amount
http://www.nationwide.co.uk/products/savings/regular-savings/rates-and-information#tab:Ratesandinformation

Steve_xx

QUOTE=mad_rich;69265519]Yes, that's what I meant.

One month, I take a chunk of cash out, and it only pays 0.25% that month, because my balance hasn't increased. But as long as I start feeding it again, the 2% interest should kick in again?[/QUOTE]

Yes. However, see the term below which kinda makes it appear that you won't lose interest by making a withdrawal:
Taking money out

You can withdraw any available funds in the account without notice or loss of interest. Withdrawals of interest count as a normal withdrawal from the account.

glider3560

mad_rich wrote: »

Yes, that's what I meant.

One month, I take a chunk of cash out, and it only pays 0.25% that month, because my balance hasn't increased. But as long as I start feeding it again, the 2% interest should kick in again?

Would you not be better off using one of the higher interest instant access savings accounts, e.g. Post Office paying 1.61%?

colsten

Anyone wanting to deposit/withdraw money regularly should obviously be using current accounts which pay way better interest than any savings account.

If all current accounts are full, and instant access is still needed, the Nationwide Regular Saver is pretty much unbeatable amongst instant access savings accounts.

I say if, as interest-paying current accounts accommodate £50,000 and I find it hard to believe that anyone would unexpectedly need instant access to more than £50K.

Steve_xx

glider3560 wrote: »

Would you not be better off using one of the higher interest instant access savings accounts, e.g. Post Office paying 1.61%?

ICICI is currently paying 1.64%, so slightly higher than the POst Office and covered by the UK FSCS. RCI Bank pays 1.65%, it's covered, but not by the UK scheme.

glider3560

Steve_xx wrote: »

ICICI is currently paying 1.64%, so slightly higher than the POst Office and covered by the UK FSCS. RCI Bank pays 1.65%, it's covered, but not by the UK scheme.

That is true. I did not suggest ICICI as I'm still waiting (15 days later) for my account to be fully opened. Have the account number now but still no internet banking details.

Steve_xx

colsten wrote: »

Anyone wanting to deposit/withdraw money regularly should obviously be using current accounts which pay way better interest than any savings account.

If all current accounts are full, and instant access is still needed, the Nationwide Regular Saver is pretty much unbeatable amongst instant access savings accounts.

I say if, as interest-paying current accounts accommodate £50,000 and I find it hard to believe that anyone would unexpectedly need instant access to more than £50K.

The Leeds Building Society, Regular Saver (Issue 3) might be worth a look at 3.05%. It allows one withdrawal a year; a second withdrawal cause the 1.8% bonus element to be lost. Also, it's only good for £250 a month. Nonetheless, worth having I think.