Regular Savings Accounts: The Best Currently Available List!

ctdctd

MARTYM8` wrote: »

So they replace a current account where you could earn £60 a year with no charge (2% on £3000) with one where you would earn a maximum of £10 in interest (0.5% on £2,000) but which will in due course cost £24 a year to operate.

Where can I sign up?:D

Not entirely relevant to a regular saver thread.

To be fair to HappyMJ, it is in the best feeder account section of this thread.

hgt

Newcastle BS have today announced that all issues of their 'Big Home Saver' accounts will drop to 1.5% from 8th July :-(

Special_Saver2

Hi Folks,

I have completed this weekend's update for the first page of this thread.

- Have put the following note on the entry on the Progressive BS Clockwork Regular Saver in post 2: "(the interest rate may drop on this as the interest rate on the withdrawn but similar Regular e-Saver (issue 2) is dropping to 2.2% from 1st July 2016 according to moi in post 3950)"
- Clydesdale Bank and Yorkshire Bank Current Account Direct accounts withdrawn and therefore removed from post 9 (feeder accounts)

I will do another update next weekend.

SS2

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For those new to this thread, the first few posts are constantly updated and are here: http://forums.moneysavingexpert.com/...=608697&page=1

moi

Special_Saver2 wrote: »

Hi Folks,

I have completed this weekend's update for the first page of this thread.

- Have put the following note on the entry on the Progressive BS Clockwork Regular Saver in post 2: "(the interest rate may drop on this as the interest rate on the withdrawn but similar Regular e-Saver (issue 2) is dropping to 2.2% from 1st July 2016 according to moi in post 3950)"

The rate on the Progressive BS Clockwork Regular Saver is indeed falling also, as is the Progressive BS Clockwork ISA Saver.
The reductions on the latter 2, both to 2.2%, were confirmed in letters sent in the post.

odalay

HappyMJ wrote: »

The Yorkshire Bank Current Account Direct is no longer on sale.

B is now the only current account that Yorkshire Bank offers that pays interest on balances up to £2,000. It pays 0.5% and after one year charges £2 per month.

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

eskbanker

Perhaps it'll help to look at it this way:

Every penny of the balance in a 6% regular saver earns interest at 6%/365 every day.

Every penny of the balance in a 4% current account earns interest at 4%/365 every day.

You won't be the first to erroneously try to rationalise a notional lower 'effective rate' from regular savers but this negates the whole point of the standardised AER comparison, so if you're starting from the position of a lump sum then put it all in one or more high-interest current accounts and drip-feed as much as you can into one or more higher-interest regular savers to maximise your total return.

Ashen

Put simply, your effective rate of approx 3% assumes you'd be keeping all the money you're going to gradually deposit into your regular saver in a bank account earning 0% until you put it into the regular saver. That would be silly to do.

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