Regular Savings Accounts: The Best Currently Available List!

kavomix

kingmonkey wrote: »

Just been to Halifax branch and they hinted that the Regular Savings Account may be changing on 6th September. Couldn't get more specific details out of her. Anyone heard/know anything else?

Yep, I applied on the phone on Tuesday, and was informed that the current rate was being withdrawn on the 7th, however they didn't say whether itthe rate would be going up or down. If it goes up, I might just close the account as Im within the 14 days condition and apply for the higher rate.

On a related matter, does anyone know how long it takes for a newly open RS opened via the phone, to appear on online banking?

Innys

kavomix wrote: »

Yep, I applied on the phone on Tuesday, and was informed that the current rate was being withdrawn on the 7th, however they didn't say whether itthe rate would be going up or down. If it goes up, I might just close the account as Im within the 14 days condition and apply for the higher rate.

On a related matter, does anyone know how long it takes for a newly open RS opened via the phone, to appear on online banking?

I doubt it will go up again as it has only recently (within the last two months or so) gone up from 4% to 5%.

At the same time, Barclays cut the rate they are offering to just over 4%. If Halifax are already offering more than Barclays and the same as RBS, Norwich & Peterborough, Lloyds, there is little incentive for them to increase the rate, IMHO.

Gambit

Hey guys,

I thought I was pretty savvy with my money but just had an obvious realisation. According to Martin's calculator, unless a cash ISA earns more than 4% (which I dont think any do) then the standard 5% regular saver would actually earn more interest and be better value? Is that right? I always thought that I should fill up my cash ISA first but now am realising that the low ISA rates mean that this is not always best practice now.

I'm trying to save for a house deposit so am tempted by the Abbey First Home Saver. I feel dirty for even considering using Abbey again but has anyone had any experience of using this account? The main reason I am tempted is that fact that you can close it whenever and are not tied into the normal 12 months like other regular savers.

Advice on this would be appreciated.

Thanks, Peter

jimbow25

In terms of the amount of interest you will earn this year you are correct (if you are a 20% tax payer).

However the point of saying "use up your ISA allowance first" is that that money will earn tax free interest not just this year, but for as long as it is there. So you should consider how long term your savings are.

I know ISA rates are poor at the moment but if you are saving up for a few years like I am, assuming rates do eventually pick up, it is best to use your allowance every year. If you are taking your money out and spending it all on 5th April 2010 then yes go for the best net rate!

Milarky

For the tax year in question it boils down to using the higher net rate available - and taking the ISA option as late as possible and using the allowance just before the end of the tax year in the hope that rates improve - and even if they don't you haven't lost out.

Eg ISA at 3.25% vs 5% (and 4% for BR taxpayer) say. 4% looks a better bet at least until March 2010 because you could still switch to an ISA for 2009/10 in that time should rates then improve.

Biggles

The other point I think you are missing is that, if you put £3,000 into a regular saver spread over 12 months, you are only earning your interest of 5% on about £1,500 of that, on average (you will only have £3,000 in the account for the last month), and then you will have to start all over again.

With an ISA, apart from the advantages already pointed out, you would earn the 4% on the whole £3,000 from Day 1.

LongTermLurker

Biggles wrote: »

The other point I think you are missing is that, if you put £3,000 into a regular saver spread over 12 months, you are only earning your interest of 5% on about £1,500 of that, on average (you will only have £3,000 in the account for the last month), and then you will have to start all over again.

With an ISA, apart from the advantages already pointed out, you would earn the 4% on the whole £3,000 from Day 1.

Assuming you have £3000 up front - I think it's likely Gambit is comparing like with like and would still be saving regularly into the ISA.

nicko33

Gambit wrote: »

I'm trying to save for a house deposit so am tempted by the Abbey First Home Saver. I feel dirty for even considering using Abbey again but has anyone had any experience of using this account? The main reason I am tempted is that fact that you can close it whenever and are not tied into the normal 12 months like other regular savers.

I would have gone for it (before I bought my house) if I had met their age limit (must be under 35). More because you can make a £5000 initial deposit and further lump sum deposits (for a 1 month penalty).
So it's a good way for under-35s to get 5% on up to £50,000 (at the cost of an Abbey mortgage interview - and access only by closure - and dealing with Abbey)

steveteach

I have today opened a RBS 5% Regular Saver. I also have a NatWest 5% Regular Saver, so you can have both. You do need another existing account, current or savings with each bank in order to open the Regular Savers. I had no problem in opening the RBS account today, took about 15 minutes.

supersavor

kavomix wrote: »

Yep, I applied on the phone on Tuesday, and was informed that the current rate was being withdrawn on the 7th, however they didn't say whether itthe rate would be going up or down. If it goes up, I might just close the account as Im within the 14 days condition and apply for the higher rate.

On a related matter, does anyone know how long it takes for a newly open RS opened via the phone, to appear on online banking?

no need to panic just yet altough the rate you get will be the first the rate available when your first credit goes in the 5% rate has been extended until the end of the month