Regular Savings Accounts: The Best Currently Available List! 27 November 2007 at 11:33PM edited 25 February 2018 at 12:44PM in Savings & Investments 6.9K replies 1.6M views

JonnyTightWad

Thanks everyone. One last question....

The Halifax account needs to be opened and funded by the 8th October. Could I transfer £10 in by the 8th, and then a further £490 on say, the 23rd, and then have my standing order date as 23rd for each month thereafter?

Thanks again

Biggles

JonnyTightWad wrote: »

We currently overpay on our mortgage by £2,000/month, but as the current interest rate is only 0.99%, I realise that we'd be better off putting the money in Savings Accounts.

I'm surprised you think that. In the long term, mortgage interest is normally going to exceed savings interest and I always understood that, if you had a mortgage that you could overpay without penalty, it was by far your best investment.

opinions4u

JonnyTightWad wrote: »

The Halifax account needs to be opened and funded by the 8th October. Could I transfer £10 in by the 8th, and then a further £490 on say, the 23rd, and then have my standing order date as 23rd for each month thereafter?

Minimum first deposit should be £25.

Other than that, it's a good plan as long as you don't exceed the £500 in a month.

mary

I have about 15 RS with various institutions and I can more or less safely say you can only have one of each issue with each institution. I cannot think of one where you can have more than one.

Lokolo

Biggles wrote: »

I'm surprised you think that. In the long term, mortgage interest is normally going to exceed savings interest and I always understood that, if you had a mortgage that you could overpay without penalty, it was by far your best investment.

Interest will raise lower than interest gained if savings rates are higher than mortgage rates.

Say you have £1000.

Interest on mortgage is 1%
Savings interest is 2%

Over a year. If you put money into mortgage, the interest will reduce by £10, and main by £1000, thus reducing by £1010. If you put money into savings, you end the year with £1020. You can then put this into the mortgage, saving you an extra £10.

Mr_K

After my 10% hsbc reg. saver has finished I'm not bothering with any more regular savers. Depends on your circumstances, but they're not worth it for me at the current rates when you can get over 3% instant access/no restrictions elsewhere.

anna42hmr

mary wrote: »

I have about 15 RS with various institutions and I can more or less safely say you can only have one of each issue with each institution. I cannot think of one where you can have more than one.

skipton building society has a reg saver account called special saver, which you can pay between -£10 to £250 per month and can have up to 3 of these accounts at any one time according to their t&c's

Zebra

I'm confused as to the best time of the month to open a Nat West Regular Saver.

The 12 month period starts from the 1st of the following month from when it was opened (unless opened on the 1st).

Does that mean that the money doesn't start earning interest until the 1st, or does it mean that it starts earning interest straight away, and earns it at that rate until maturity ( which could be nearly 13 months)?

ffacoffipawb

Lokolo wrote: »

Interest will raise lower than interest gained if savings rates are higher than mortgage rates.

Say you have £1000.

Interest on mortgage is 1%
Savings interest is 2%

Over a year. If you put money into mortgage, the interest will reduce by £10, and main by £1000, thus reducing by £1010. If you put money into savings, you end the year with £1020. You can then put this into the mortgage, saving you an extra £10.

You haven't allowed for tax on the savings rate.

oldfella

I'm confused as to the best time of the month to open a Nat West Regular Saver.

The 12 month period starts from the 1st of the following month from when it was opened (unless opened on the 1st).

Does that mean that the money doesn't start earning interest until the 1st, or does it mean that it starts earning interest straight away, and earns it at that rate until maturity ( which could be nearly 13 months)?

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if you dont open it on the first, the first month is taken to be that month and the following month. Therefore you cant deposit more than £250 in the first month. You do best to open it on the 2nd as you get 5% for 13 months - but you cant exceed £3000 over the period.