TSB Interest rate drop

colsten

Nuggy96 said:

looks like i'll be putting it in the Al Rayan account getting 1.6%

Me too, and from there into any RS that pays 2% upwards

techwatcher

colsten said:

techwatcher said:

It's still market leading for instant access, albeit on just £1500 and for the couple of minutes a month it takes to meet the funding requirements I will be keeping the account.

It takes a very short time only to stick £1,500 into Regular Savers - e.g. 3 months to get it into Coventry, or into KRBS if you have access to KRBS. Even the 2% RSes pay more than 1.5% AER.

Hadn't thought of Regular Savers as a more profitable alternative - thanks colsten.

VXman

colsten said:

Nuggy96 said:

looks like i'll be putting it in the Al Rayan account getting 1.6%

Me too, and from there into any RS that pays 2% upwards

Not bright enough to do the maths. A regular saver above 2% is worth more than £1500 at 1.5% for a year?
What is the minimum to be saved per month to make this work?
of course, generally one needs to have a current account to access many of these regular savers.
I have 6 TSB accounts. I’m not sure I want the hassle of money in and out every month for 1.5%.

VXman

Hmmm... I would have said keeping it at 3% would have made kept it more competitive than 1.5%. Maybe not sustainable though.

fred246

One of the important points with the regular savers is their accessibility. The TSB is very good. Your 2% money is easily available. With the Coventry you pay a penalty.

techwatcher

VXman said:

colsten said:

Nuggy96 said:

looks like i'll be putting it in the Al Rayan account getting 1.6%

Me too, and from there into any RS that pays 2% upwards

Not bright enough to do the maths. A regular saver above 2% is worth more than £1500 at 1.5% for a year?
What is the minimum to be saved per month to make this work?

£175 per month into a Regular Saver paying 2% will pay slightly more than £1500 at 1.5% for a year.

masonic

techwatcher said:

VXman said:

colsten said:

Nuggy96 said:

looks like i'll be putting it in the Al Rayan account getting 1.6%

Me too, and from there into any RS that pays 2% upwards

Not bright enough to do the maths. A regular saver above 2% is worth more than £1500 at 1.5% for a year?
What is the minimum to be saved per month to make this work?

£175 per month into a Regular Saver paying 2% will pay slightly more than £1500 at 1.5% for a year.

True, and using a combination of both will pay more than using either in isolation. A regular saver should never be used alone if one has a lump sum to save.

Poor_Leno

phillw said:

Even after halving the interest, they are still market leaders for ongoing easy access.

Don't think so.  Newbury's interest rate is 1.75% for existing members.  That's what I use for easy access.

colsten

Poor_Leno said:

Don't think so.  Newbury's interest rate is 1.75% for existing members.  That's what I use for easy access.

That's a very limited account as you can only deposit £2,000 a tax year, and it's only for a very limited Post Code range. It's a useful account for those lucky enough to be entitled to it. I am one of them, and I'll definitely not withdraw a penny from it whilst they keep it at 1.75%. I'll also be adding my next £2k to it on April 6.

colsten

VXman said:

Not bright enough to do the maths. A regular saver above 2% is worth more than £1500 at 1.5% for a year?
What is the minimum to be saved per month to make this work?
of course, generally one needs to have a current account to access many of these regular savers.
I have 6 TSB accounts. I’m not sure I want the hassle of money in and out every month for 1.5%.

Use the MSE Regular Saver calculator to work out the effects of drip-feeding into a Regular Saver.
You don't need a current account for many of the RSs. For instance, the Coventry RS can be held as a stand-alone account. It pays 2.5% AER and the max monthly deposit is £500. Depending on where you live, you might have a local BS or bank which offers a good RS. For example, KRBS in the South East is 3%. 

But if you want to go for the 2.75% ones at FD, M&S or HSBC, that can be done, too, and is probably your most profitable option if you haven't already got current accounts with them. Switch 3 of your TSB accounts for the switch bonus money; that could be near enough £500 if you get it right.  Then start using their RSs.