Regular Savings Accounts: The Best Currently Available List!

dark.knight_3

glider3560 wrote: »

If I put £500 per month into a regular saver paying 2%, I get £60 per year interest.
If I put £500 per month into a normal savings account paying 1%, I get £30 per year interest.

Therefore the 2% regular saver (and any RS paying >1%), pays more interest than a 1% savings account.

Ok, that was a bad and unresearched comment with it being 1% on my part. What i was basing this on was 6% becomes 3 and 5% becomes 2.5 after maturity on an RS and applied the same logic.

veryintrigued wrote:

This is a wind up right?

Ok which bit did you see as a wind up? please advise on your calculations as to what a 6 and 5% regular saver will return on maturity. Also please explain your hostility

YorkshireBoy

dark.knight wrote: »

please advise on your calculations as to what a 6 and 5% regular saver will return on maturity.

A 5% FD regular saver with £300 a month will return:

£3,600 x 5% / 12 x 6.5 = £97.50

You can work the 6% out for yourself.

Back to your original surprise at someone wanting to fund a 2% regular saver when 1% was available elsewhere. If you had £250 a month spare, where would you put it?...in an ordinary savings account paying 1% AER or a regular saver paying 2% AER (or even 1.1% AER)? For the purpose of this exercise, assume you've filled all the other 6/5/4/3/2% accounts, both current and regular saver.

Frogletina

dark.knight wrote: »

Ok, that was a bad and unresearched comment with it being 1% on my part. What i was basing this on was 6% becomes 3 and 5% becomes 2.5 after maturity on an RS and applied the same logic.

A 6% regular saver does not become 3 at maturity - the return is exactly 6%.

What it does return (roughly) is what a 3% account would return if the whole of the £3600 was deposited in the first month and kept for the whole year - which is completely different.

schiff

dark.knight wrote: »

Ok, that was a bad and unresearched comment with it being 1% on my part. What i was basing this on was 6% becomes 3 and 5% becomes 2.5 after maturity on an RS and applied the same logic.

please advise on your calculations as to what a 6 and 5% regular saver will return on maturity.

You are not alone in this misconception, the discussion has taken place several times before. Hence the groans when you brought it up again. But WADR you seem reluctant to even consider the explanations that several different people have offered you.

At the end of 12 months the 6% interest 'seems like' 3% but your balance at the end of month one was £300, so you can't expect 6% on the balance at the end of 12 months.

Surely?

steve65e

Frogletina wrote: »

What it does return (roughly) is what a 3% account would return if the whole of the £3600 was deposited in the first month and kept for the whole year - which is completely different.

Or to spell it out even more clearly to DarkKnight.

You have worked out the AER on the basis that you have deposited £3600 for a year. But you didn't do that!

Westie983

YorkshireBoy wrote: »

Keep it at 5%?...it's been 3% for months now, ever since they launched Issue 2 hasn't it?

I dont know, as I have issue 1, I cant open a new one till it matures, but that answers my question 3%

Thanks :0)

adindas

dark.knight wrote: »

Ok, that was a bad and unresearched comment with it being 1% on my part. What i was basing this on was 6% becomes 3 and 5% becomes 2.5 after maturity on an RS and applied the same logic.

Ok which bit did you see as a wind up? please advise on your calculations as to what a 6 and 5% regular saver will return on maturity. Also please explain your hostility

I suggest you read this for a thorough explanation of it.

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Scroll down on the bottom for the math part of it.
On the bottom there is also calculator to estimate how much you will likely to get from RSA.

What you are probably not aware of is that, people who subscribe to a Lower than 2% RSA (but higher than 1%) is highly likely
- The people who have maxed out high interest current account and RSA paying 2%+.
- The way the people are operating the RSA is not like the way you think. The money is already sitting in instant saving account 1% (not under the pillow) to guarantee they will get at least 1% interest. It will then slowly be shifted to a higher interest (1%+) by drip feeding it from this instant saving ac to RS paying higher than 1%. By doing this you will always get a higher than 1% interest.

A subscription to a RSA paying less than 2% is only meaningless if there are still current ac, saving, instant access saving account paying at 2%+ available for you. For people who have maxed out these, the current next best they could get is instant access saving account paying 1%. So any RS account with 1%+ drip-fed from this instant access saving account will always perform better than 1%.

I myself is not bother to look for RS paying lower 2% as to me is not worthy considering hassles, time involved and the tiny difference in interest. But some people with main intention to maximize interest still want to do that and the interest of their money is always better than sitting in 1% instant access saving ac.

schiff

schiff wrote: »

I'm going to go to a branch and register my signature before my RS matures on Feb 3rd. That might do it.

TSB RS

Called in a branch today, signed a couple of documents and if I understand it correctly, my maturing RS will go to a new low interest account and then be automatically transferred into my Classic Plus account, from whence I can send it where I wish.

Jo_Blogs

Westie983 wrote: »

I dont know, as I have issue 1, I cant open a new one till it matures, but that answers my question 3%

Thanks :0)

With regards to Santander, who said you can't have an issue 1 fixed @5% and an issue 2 @3% variable? The terms of each issue state max one per customer not a max of one RS product overall per customer......:D;)

adindas

Jo_Blogs wrote: »

With regards to Santander, who said you can't have an issue 1 fixed @5% and an issue 2 @3% variable? The terms of each issue state max one per customer not a max of one e-saver product overall per customer......:D;)

I am interested in knowing whether anyone managed to get both of them.