Regular Savings Accounts: The Best Currently Available List!

vernall

Sorry, didn't know if what I had replied was correct lol

So you take £200 a month out of Chase paying you 1.5% on it and place it in a 2% RS that's paying you just over 1% on it?

kaMelo

vernall said:

Sorry, didn't know if what I had replied was correct lol

So you take £200 a month out of Chase paying you 1.5% on it and place it in a 2% RS that's paying you just over 1% on it?

No.
Money in Chase would earn 1.5% if you left it in there for a full year.
Money in a regular saver @2% would earn 2% if it was in there for a full year.

You can't just dump the whole amount in a regular saver so only one month will earn the full 2%. The next month's deposit will earn 11/12 of 2%, assuming you moved this from Chase it would have earned 1/12 of 1.5%. and so on.
Each month the money in the regular saver would earn 0.5% more than it was earning in Chase.

Daliah

vernall said:

Sorry, didn't know if what I had replied was correct lol

So you take £200 a month out of Chase paying you 1.5% on it and place it in a 2% RS that's paying you just over 1% on it?

As has been said, a 2% account pays 2%, not 1%.

Play with the MSE Regular Savings calculator to get a better understanding of how Regular Saver accounts are working.

Also read the RS article.

londoner62

I use https://moneyfacts.co.uk/savings-accounts/monthly-savings-calculator/ for working out my RS returns; can someone message me please with a lump sum calculator that works for periods below one year so I can compare rates of return? All the calcs I have found seem to be limited to a one year minimum time frame. In advance, I thank you.

Daliah

londoner62 said:

I use https://moneyfacts.co.uk/savings-accounts/monthly-savings-calculator/ for working out my RS returns; can someone message me please with a lump sum calculator that works for periods below one year so I can compare rates of return? All the calcs I have found seem to be limited to a one year minimum time frame. In advance, I thank you.

See above for the MSE calculator.

NB. what do you mean by "rates of return"? Do you mean the amount of interest you can earn? As it's easy to compare the interest rate, which is always given as the AER, so there is the same comparator for all accounts. A higher AER is always better.

adindas

vernall said:

Should we not be looking for RS paying at least 3% now? A 2% RS for example is really only paying 1% upon maturity of entire balance. You can get 1.5% on an entire balance on £85000 with Chase, if you've not max'd it out that is.

The problem here is that RSA only allow you a small amount per month mostly £250. in rare occasion is £500. But those allow high IR will normally offer a worse IR.

Also it is only a few RSA currently paying 3%+ (say). That RSA equivalent in your example is not exactly 1.5% but a little bit higher.

Say you could find several RSA paying £1,000 in total where is the rest of your money e.g £84,000 will be earning interest ? The same things in the following months.

You will be better off find the second best in easy saving and drip-feeding it monthly to higher paying RSA.

This an article from MSE how you maximise your interest using both easy access and RSA.

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#accordion-content-0230858920-3

polymaff

Bleed out of monthly income and you really get the RS's rate.

Bleed out of an interest-bearing lump sum and you'll get the average of the two interest rates.

Regular Savers - like Cash ISAs - were pushed as "a good thing" by Governments. and a totally illogical interest rate was sustained.  The gilt has just about totally come off cash ISAs and, to an extent, off Regular Savers. (originally launched as Save-as-you-earn - not the same thing as more recent use of the term SAYE)

Two years after the 2008 crash you could still get 10% on a Regular Saver.

Notepad_Phil

vernall said:

Should we not be looking for RS paying at least 3% now? A 2% RS for example is really only paying 1% upon maturity of entire balance. You can get 1.5% on an entire balance on £85000 with Chase, if you've not max'd it out that is.

It might be easier for you if you didn't think of the regular saver halving the interest rate but instead that on average you only have approximately half the final sum in the account - so it is paying the full interest rate whenever the money is in the account and the money not yet in the account is available to be gaining interest elsewhere until it is moved to the regular saver.

tg99

Wheres_My_Cashback said:

tg99 said:

For the Loughborough flexible save to buy Reg saver is there a set term to maturity or is it open ended? I know there is a max balance of £24k but can’t recall what happens after this. Thanks 

As above, it's an indefinite term with a 24K max balance, but unfortunately like all other LBS RS it's been been left behind without a single rate increase since conception. Already closed 2 other LBS RS and this will be another to go on the 'to close/withdrawal' list.

Yes I think I’ll be putting it on that list too, first off will reduce monthly SO to the min £10. May keep the c£20k balance in there for a bit longer given still slightly better than what I can get elsewhere if I withdrew it. Have already withdrawn balance from the LBS flexible monthly saver paying 1.2% though kept min £10 and changed SO to £10 for now.

Special_Saver2

Hi Everybody,

I have changed the following items on page 1 of this thread for this weekend's update.

- Cambridge BS Extra Reward Regular Saver Account withdrawn and removed from page 1
- Principality BS Thank You Saver (Issue 4) interest rate increased to 1.8% from 1st June
- Principality BS Thank You Online Saver (Issue 4) interest rate increased to 1.8% from 1st June
- Principality BS First Home Steps Savings Account (Issue 3) interest rate increased to 1.3% - 2% (depending on your account balance) from 1st June
- Melton BS Jubilee Regular Saver added paying 2.7% fixed on £250 per month until 31st July 2024 but no early withdrawals allowed

I will do the next update next weekend.

SS2

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For those new to this thread, the first few posts are constantly updated and are on the first page
https://forums.moneysavingexpert.com/discussion/6106986/regular-savings-accounts-the-best-currently-available-list/p1