RBS SAVINGS BUILDER ACCOUNT

K10

Just looking at Instant Access Savings Accounts, considering the Saga one, and then saw this one from RBS (who we already have a Current Account with), and wondered if it might be a good bet?

Earn up to 1.00% AER/Gross p.a. (variable) when you grow your savings by £50 or more each month

Flexibility when you need it. If you can't grow your savings by £50 in a month, it just means you won’t earn interest for that month

Balance grows by less than £50 a month: regular saving condition is not met - NO INTEREST

Balance grows by at least £50 a month: regular saving condition is met - £1 up to £10,000 = 1.00% INTEREST. Over £10,000 = 0.01% INTEREST

No minimum deposit is required to open the account; and there is no maximum balance limit.
Withdrawal during the month which means your month to month balance does not increase by £50 or more will result in the regular saving condition not being met and interest not being earned for that month only.

MovingForwards

Do you have £50pm spare?

I used one to get my mortgage deposit together, using it again now I'm saving post purchase. Other members have them too.

What's your overall aim? What's your concerns about it?

ian1246

Natwest (Linked to RBS) do the same. Was just pondering the exact same question of whether to use them rather than open a new NS&I one!

colsten

If you have up to £50/mth (or more) spare, there are a whole lot of Regular Saver accounts that pay a lot more than 1%. Many don't have any minimum monthly deposit requirements, and those that do rarely ask for more than £20. Granted, you'd need more than one of these for £10,000 and you'd have to recycle them once a year. That's not really much effort. 

K10

MovingForwards said:

Do you have £50pm spare?

I used one to get my mortgage deposit together, using it again now I'm saving post purchase. Other members have them too.

What's your overall aim? What's your concerns about it?

We have the santander 123 account, which used to pay a reasonable a reasonable amount on money left from bills. But the rate has dropped so low, we've changed to the 123 Lite, but no interest. We also use their attached Regular Saver, so the money recycles. But looking for somewhere for the money to sit, if not needed to bills, but also Instant Access in case needed. Have an RBS current account already, so thought it might be an idea?

K10

colsten said:

If you have up to £50/mth (or more) spare, there are a whole lot of Regular Saver accounts that pay a lot more than 1%. Many don't have any minimum monthly deposit requirements, and those that do rarely ask for more than £20. Granted, you'd need more than one of these for £10,000 and you'd have to recycle them once a year. That's not really much effort. 

Yes I agree there are better Regular Savings accounts, but it's primarily somewhere to put a small lump sum, and Instant Access to withdrawels I need

RG2015

K10 said:

colsten said:

If you have up to £50/mth (or more) spare, there are a whole lot of Regular Saver accounts that pay a lot more than 1%. Many don't have any minimum monthly deposit requirements, and those that do rarely ask for more than £20. Granted, you'd need more than one of these for £10,000 and you'd have to recycle them once a year. That's not really much effort. 

Yes I agree there are better Regular Savings accounts, but it's primarily somewhere to put a small lump sum, and Instant Access to withdrawels I need

In which case it is a good choice. I have had the (identical) NatWest version since 2016 and it has served me well.

It wouldn't surprise me though if the rate was reduced within the next few weeks.

The only thing mitigating an early rate reduction is the confusing terms which often mean no interest is paid out, hence benefiting RBS/NatWest.

The main one is that the monthly £50 growth is measured on the second last business day of each month.

colsten

K10 said:

colsten said:

If you have up to £50/mth (or more) spare, there are a whole lot of Regular Saver accounts that pay a lot more than 1%. Many don't have any minimum monthly deposit requirements, and those that do rarely ask for more than £20. Granted, you'd need more than one of these for £10,000 and you'd have to recycle them once a year. That's not really much effort. 

Yes I agree there are better Regular Savings accounts, but it's primarily somewhere to put a small lump sum, and Instant Access to withdrawels I need

If you are regularly withdrawing, you might end up with no interest at all as they only pay you if your balance grows by at least £50 a month. There are still instant access accounts that pay 1%, or - depending on how small your small lump sum is - even 1.5% or 2%, without any penalty for withdrawals.