Regular Savings Accounts: The Best Currently Available List!

bigadaj

odalay wrote: »

Hi there, just had a quick question relating to regular savers - Obviously everyone is looking to maximise interest on their money, so my question is what is the advantage of a regular saver over a high interest account?

Example 1 - First Direct Regular saver @ 6% which works out to £108 with the full amount saved per month £3600 (but basically the effective rate is 3% )
...or
Example 2 - Club Lloyds @ 4% - you would need to have £4000 in there to get the 4% but still the interest is higher (£160 per year) and ongoing year after year, and paid monthly. The same applies to TSB, Santander etc.

I'm not suggesting either is better than the other - but maybe someone could explain relating to my initial question. Thanks!!

HappyMJ - I quoted your post as I saw your signature about Loans at 2.9% and regular saver at 6%, so I just wondered how that works if the regular savers effective rate is really only 3%? I can only see a 0.1% difference - what am i missing?

Cheers

There are several reasons.

First is its not an either question, for many people it's both, £50k+ can be put into high interests current accounts, and then in addition a few thousand per month into regular savers.

Also for much of the population primary income is salary or similar, so a regular payment on a monthly basis from which hopefully some can be saved. Regular savers are ideal for this, and for some people have the added benefits of being taken out of temptation from an easily accessible account. Employers don't like paying an annual salary up front in one payment apparently.

verybigchris

I've just tried to open a Club Lloyds Monthly Saver and it's showing at 3%, rather than 4%. Have they cut the rate, or am I missing something?

Hasbeen

verybigchris wrote: »

I've just tried to open a Club Lloyds Monthly Saver and it's showing at 3%, rather than 4%. Have they cut the rate, or am I missing something?

Or you could try current account see link

http://www.lloydsbank.com/current-accounts/club-lloyds.asp

Previn

verybigchris wrote: »

I've just tried to open a Club Lloyds Monthly Saver and it's showing at 3%, rather than 4%. Have they cut the rate, or am I missing something?

Looks like its changed as of today according to the interest rate history. Now advertised as 3% for the reg saver, although still 4% for the current account.
It does say fixed for 12 months, so if anyone has an existing saver they wont lose out.

eskbanker

verybigchris wrote: »

I've just tried to open a Club Lloyds Monthly Saver and it's showing at 3%, rather than 4%. Have they cut the rate, or am I missing something?

Looks like they've just reduced the rate from 4% to 3% as from today, according to http://www.lloydsbank.com/rates/savings/club-lloyds-monthly-saver.asp

B_G_B

Previn wrote: »

Looks like its changed as of today according to the interest rate history. Now advertised as 3% for the reg saver, although still 4% for the current account.
It does say fixed for 12 months, so if anyone has an existing saver they wont lose out.

Agreed. I’ve just checked paperwork on Regular Saver that I opened ~2 months ago and can confirm that it is fixed (4%) for the 12 month duration.

fun4everyone

Well noticed on the Club LLoyds regular saver thanks. Glad I got in there before the change.


Guess as a loss leader it was costing too much. I suppose 3% is still ok if you have oodles of cash and have filled every other better option.

veryintrigued

adindas wrote: »

In this league, I thinks, Leeds BS regular saver has a better option as it is 3% (including bonus) You could only put £250 but it is for indefinite period (not just 1 year) and they allow people to make one withdrawal a year without loosing the bonus.

For clarity - the Leeds one is 3.05%

Also if you're making comparisons the Club Lloyds you can deposit £400 (rather than £250) a month.

And also you can make as many withdrawals as you like from the Club Lloyds into the Club Lloyds C/A.

Oh and the non bonus interest part of the Leeds one is variable too.

I know which one of these I think is the best (if I had to choose)

adindas

veryintrigued wrote: »

For clarity - the Leeds one is 3.05%

Also if you're making comparisons the Club Lloyds you can deposit £400 (rather than £250) a month.

And also you can make as many withdrawals as you like from the Club Lloyds into the Club LLoyds C/A.

Oh and the Leeds one is variable too.

I know which one of these I think is the best (if I had to choose)

Yes it is 3.05% as you see I have corrected it before your posting.

It depends on people circumstances and how much money they want to save. Also you might underestimate the value of indefinite 3.05% . If you keep saving £250 in three years you will have £9,000 earning 3.05% and this will keep adding. With Club Lloyd after one year you will start from £400 again.

Keep in mind knowledgeable people here at MSE who are aiming RSA at 3% interest (not 4%) must have swapped out all of the best high interest account first paying 3%+ RSA before moving into the next best. So there are always be more than enough cash available instantly in the current AC when they need it.

One penalty free withdrawal a year with LBS is good for exit strategy when you need the money which is predictable and more than available on your current account such as for house deposit, etc

veryintrigued

adindas wrote: »

Yes it is 3.05% as you see I have corrected it before your posting.

It depends on people circumstances. Also you might underestimate the value of indefinite 3.05%. If you keep saving £250 in three years you will have £9000 earning 3.05%.

Keep in mind the people who are aiming RSA at 3% interest (not 4%) has swapped out all of the best high interest account first + 3%+ RSA before looking into the next best. So there are always be a lot cash available instantly when they need it instantly.

One penalty free withdrawal a year with LBS is good for exit strategy when you need the money which is predictable and more than available on your current account such as for house deposit, etc

I think you need to look up the definition of 'variable interest rate' and your (made up) association of indefinite on the Leeds.

I think most people would prefer multiple withdrawals (as per the Lloyds) rather than the one (for the Leeds).

So - guaranteed (for that year) interest rate, ability to save more (and therefore more interest) and more withdrawals allowed.

Are you on the LBS board?

P.S. I have both BTW. The (now sadly closed for new accounts) N&P Family Regular Saver (at 3.35%) is the same sort of thing as the LBS one.