Regular Savings Accounts: The Best Currently Available List!

ForumUser7

granta said:

dcs34 said:

DJDools said:

Velvet_Monkey said:

...I think everyone should close and re-open at the new rate on a matter of principle, thus losing Halifax all the current capital they have at a lower rate! If you can put your surplus capital in a feeder account, or short term fixed account for a similar rate, then you'd be unlikely to lose significant interest. That's what I'm doing anyway. I haven't calculated whether I'll be better or worse off (and to some extent it depends on what happens in the future, which nobody can tell). I don't expect its much either way, but this feels right in the circumstances. 

Won't you lose all the interest on the amount held in the a/c you're going to close? I'm assuming it hasn't reached its full maturity, and I believe Halifax says if you close it, the funds remain there for 12 months.

What they say, and what they let you do, are different in practise.

The key thing is to "renew" the account into a different type of savings account before withdrawing and closing. 

Their system (Halifax, BOS, Lloyds) only tracks the account type at closure when determining eligibility for opening a new regular saver. So if you close it as a regular saver, it will stop you opening another one until the 12 month anniversary.

Is it possible to do the renewal on the app for Lloyds, BoS, Halifax? I cannot see any option to renew. Or is it on website only?

Online banking only, the app doesn’t give the option

Band7

I wonder how much longer this loophole will still exist, after it's been discussed to death and back on the Internet, and some people even rang Halifax to ask whether it was ok to do this! The 'renew' option is already not available for the RS in the app, only online. I reckon it's just a matter of time until it vanishes entirely.

ForumUser7

Band7 said:

I wonder how much longer this loophole will still exist, after it's been discussed to death and back on the Internet, and some people even rang Halifax to ask whether it was ok to do this! The 'renew' option is already not available for the RS in the app, only online. I reckon it's just a matter of time until it vanishes entirely.

For Halifax, it is permitted to close, and then open more than one within 12 months, I.e. the ts and cs do not say it isn’t allowed like they do for BoS and Lloyds. The CS reps confirmed the same, and said this is because you can only access funds upon closure, whereas with BoS you could just withdraw

allegro120

Band7 said:

I wonder how much longer this loophole will still exist, after it's been discussed to death and back on the Internet, and some people even rang Halifax to ask whether it was ok to do this! The 'renew' option is already not available for the RS in the app, only online. I reckon it's just a matter of time until it vanishes entirely.

Not a loophole for Halifax as they don't have a 12 months rule.  You could be right, BoS and Lloyds might have noticed that their rule is not enforced, but whether they are actually bothered enforcing it or not is another question.  I don't think they loose anything if a small number of people renew their regular savers, instead they are gaining from those who renew after 3-4 months.  I've just renewed my 5-instalments-worth Halifax, £250 went to the new 5.5% RS, £1000+£11.07 interest went to Mansfield BS tracker that pays 4% (likely to increase at the end of this month). Gain for me because the money I withdrawn still earn a decent rate, but also some gain for Halifax - they don't have to pay me interest on £1011.07 I've withdrawn, Mansfield BS will.  The reason banks offer high interest RS is to get and/or keep the customers.  They are not making money on offering high rates on RS accounts, but on selling loans, mortgages, insurances etc.

OceanSound

ForumUser7 said:

Band7 said:

I wonder how much longer this loophole will still exist, after it's been discussed to death and back on the Internet, and some people even rang Halifax to ask whether it was ok to do this! The 'renew' option is already not available for the RS in the app, only online. I reckon it's just a matter of time until it vanishes entirely.

For Halifax, it is permitted to close, and then open more than one within 12 months, I.e. the ts and cs do not say it isn’t allowed like they do for BoS and Lloyds. The CS reps confirmed the same, and said this is because you can only access funds upon closure, whereas with BoS you could just withdraw

Off topic: Can I just say, you must be the most financially savvy 17 year old I've ever met.

Future Martin Lewis in the making I believe

Nick_C

Absolutely dreadful article from "This Is Money" demonstrating complete financial ignorance.

If you understand RSAs, read it for a laugh.

"Tempted by a regular saver? We reveal how one deal with a 6.25% interest rate would get you LESS cash than an easy access account at 3.4%"

https://www.thisismoney.co.uk/money/saving/article-11844465/Regular-saver-rates-7-earn-cash-account-paying-half-that.html

RG2015

Nick_C said:

Absolutely dreadful article from "This Is Money" demonstrating complete financial ignorance.

If you understand RSAs, read it for a laugh.

"Tempted by a regular saver? We reveal how one deal with a 6.25% interest rate would get you LESS cash than an easy access account at 3.4%"

https://www.thisismoney.co.uk/money/saving/article-11844465/Regular-saver-rates-7-earn-cash-account-paying-half-that.html

Even worse, the Times said much the same.

https://forums.moneysavingexpert.com/discussion/6432538/great-rates-you-cant-get/p1


https://www.thetimes.co.uk/article/what-the-banks-dont-tell-you-about-their-savings-accounts-5fgjn7kjw

pecunianonolet

Nick_C said:

Absolutely dreadful article from "This Is Money" demonstrating complete financial ignorance.

If you understand RSAs, read it for a laugh.

"Tempted by a regular saver? We reveal how one deal with a 6.25% interest rate would get you LESS cash than an easy access account at 3.4%"

https://www.thisismoney.co.uk/money/saving/article-11844465/Regular-saver-rates-7-earn-cash-account-paying-half-that.html

Ignorance? I'd rather say incompetence. 

Band7

Nick_C said:

Absolutely dreadful article from "This Is Money" demonstrating complete financial ignorance.

If you understand RSAs, read it for a laugh.

"Tempted by a regular saver? We reveal how one deal with a 6.25% interest rate would get you LESS cash than an easy access account at 3.4%"

https://www.thisismoney.co.uk/money/saving/article-11844465/Regular-saver-rates-7-earn-cash-account-paying-half-that.html

I have now read the article. Incredible incompetence! Staggering quotes attributed to the lady from Savings Champion, too!

We should email the Editor of Thisismoney, and escalate to IPSO if he doesn't get the article corrected / withdrawn

BestSeagull

Nick_C said:

Absolutely dreadful article from "This Is Money" demonstrating complete financial ignorance.

If you understand RSAs, read it for a laugh.

"Tempted by a regular saver? We reveal how one deal with a 6.25% interest rate would get you LESS cash than an easy access account at 3.4%"

https://www.thisismoney.co.uk/money/saving/article-11844465/Regular-saver-rates-7-earn-cash-account-paying-half-that.html

I cannot believe what I just read. Outrageous!