NS&I to cut premium bond rate and other accounts

polymaff

maman said:

Thanks for all the fascinating maths. I've decided to keep my premium bonds for the time being as a sort of raffle ticket.😊

Sorry this is a bit off topic, just looking for an opinion and Regular Saver thread seems very long and involved.

I have 3 linked  Regular saver accounts which are all  coming to an end soon. 
The Lloyds one (£400 per month max) is offering 1% fixed for next year.  I'm inclined to go with this 'bird in the hand'  option as my 1.2% Coventry account is variable so could be pulled any time. Does that thinking make sense to you experts?🤔

It is worth bearing in mind that there are all sorts of regular savers - some fixed, some variable rate, some with easy access, some with no requirements for regular pay-ins, some with the option to top-up months after a regular pay-in has been skipped.

Nothing like as black-and-white, nowadays.

Frogletina

maman said:

Thanks for all the fascinating maths. I've decided to keep my premium bonds for the time being as a sort of raffle ticket.😊

Sorry this is a bit off topic, just looking for an opinion and Regular Saver thread seems very long and involved.

I have 3 linked  Regular saver accounts which are all  coming to an end soon. 
The Lloyds one (£400 per month max) is offering 1% fixed for next year.  I'm inclined to go with this 'bird in the hand'  option as my 1.2% Coventry account is variable so could be pulled any time. Does that thinking make sense to you experts?🤔

I would open the regular savers and fund them with the minimum amount per month, if they are at 1%, until your Coventry account drops their interest rate at which point you can then fund the maximum amount (subject to terms and conditions). Ideally the best thing with regular savers is to spread them out so you have them maturing monthly if you have enough. I've had most Virgin regular savers, but didn't take out two of them when they dropped to 1%. I've recently taken out two regular savers with Principality, one with HSBC,  the Virgin homebuyer one, and the Tipton app one, all giving over 1.2%

I have the Coventry double access saver but only got it at 1%. My maturing funds will fund my new regular savers for now, as they usually do. Hopefully I might get find a new fixed ISA in April, in the meantime I've just fixed one at 1% for the year.

wiseonesomeofthetime

maman said:

I have 3 linked  Regular saver accounts which are all  coming to an end soon. 
The Lloyds one (£400 per month max) is offering 1% fixed for next year.  I'm inclined to go with this 'bird in the hand'  option as my 1.2% Coventry account is variable so could be pulled any time. Does that thinking make sense to you experts?🤔

Keep an eye on Tipton BS.

Rumour on here is that their recent 1.35% Regular Saver may return in App, but at a lower maximum of £250.

I don't know how the author of that post came to that conclusion, however, I would keep it on the radar.

Last week's 1.35% @ £500pm was only live for 36-48 hours, I believe.

Eco_Miser

Frogletina said:

maman said:

Thanks for all the fascinating maths. I've decided to keep my premium bonds for the time being as a sort of raffle ticket.😊

Sorry this is a bit off topic, just looking for an opinion and Regular Saver thread seems very long and involved.

I have 3 linked  Regular saver accounts which are all  coming to an end soon. 
The Lloyds one (£400 per month max) is offering 1% fixed for next year.  I'm inclined to go with this 'bird in the hand'  option as my 1.2% Coventry account is variable so could be pulled any time. Does that thinking make sense to you experts?🤔

I would open the regular savers and fund them with the minimum amount per month, if they are at 1%, until your Coventry account drops their interest rate at which point you can then fund the maximum amount (subject to terms and conditions). Ideally the best thing with regular savers is to spread them out so you have them maturing monthly if you have enough.

I'm not sure about just funding the minimum, unless the account allows catchup later.

You've guaranteed the rate, but won't have much in the account when the rates fall, so won't be earning that much at the higher fixed rate, and can only boost it at the standard monthly amount.

I normally pay the maximum into regular savers, lose a bit before a drop, but gain more after it.

maman

polymaff said 

It is worth bearing in mind that there are all sorts of regular savers - some fixed, some variable rate, some with easy access, some with no requirements for regular pay-ins, some with the option to top-up months after a regular pay-in has been skipped.

Nothing like as black-and-white, nowadays.

Yes, unlike frogletina, I'm pretty sure that while I can put up to £400 a month in my Lloyds Saver I don't think I can play catch up if I put less in on any particular month. I could stop, I think, using it or put in  an absolute monthly minimum if rates suddenly became better elsewhere. I'll have to look up the Ts & Cs to be sure because, as you said, they can vary from bank to bank. 

Frogletina

maman said:

polymaff said 

It is worth bearing in mind that there are all sorts of regular savers - some fixed, some variable rate, some with easy access, some with no requirements for regular pay-ins, some with the option to top-up months after a regular pay-in has been skipped.

Nothing like as black-and-white, nowadays.

Yes, unlike frogletina, I'm pretty sure that while I can put up to £400 a month in my Lloyds Saver I don't think I can play catch up if I put less in on any particular month. I could stop, I think, using it or put in  an absolute monthly minimum if rates suddenly became better elsewhere. I'll have to look up the Ts & Cs to be sure because, as you said, they can vary from bank to bank. 

I wasn't meaning you could put more in the regular savers in later months, but keeping the money you do have at 1.2% for the longest time possible.

Of course, it will depend on how much money you have earning 1.2% and how many regular savers you have. I have more regular savers at 1% than I actually need, but they are insurance against falling interest rates. In the meantime, I also took out a 1% fixed Isa.

maman

Frogletina said:

maman said:

polymaff said 

It is worth bearing in mind that there are all sorts of regular savers - some fixed, some variable rate, some with easy access, some with no requirements for regular pay-ins, some with the option to top-up months after a regular pay-in has been skipped.

Nothing like as black-and-white, nowadays.

Yes, unlike frogletina, I'm pretty sure that while I can put up to £400 a month in my Lloyds Saver I don't think I can play catch up if I put less in on any particular month. I could stop, I think, using it or put in  an absolute monthly minimum if rates suddenly became better elsewhere. I'll have to look up the Ts & Cs to be sure because, as you said, they can vary from bank to bank. 

I wasn't meaning you could put more in the regular savers in later months, but keeping the money you do have at 1.2% for the longest time possible.

Of course, it will depend on how much money you have earning 1.2% and how many regular saver you have. I have more regular savers at 1% than I actually need, but they are insurance against falling interest rates. In the meantime, I also took out a 1% fixed Isa.

Thanks for clarifying that. It's been so useful  for me raising these questions. Normally the Regular Savers are always worth it as they have a higher rate because of the limit on how much you can put in. Now that's not always the case even more thinking and juggling required! 

maman

My Lloyds Regular Saver is going to drop to 0.5% this coming year.  I'm inclined to open one as it's fixed  I really can't believe the 1.2%  Coventry a/c I have will last through the year. Who'd have thought 0.5% looked attractive??

strawb_shortcake

I'd not seen that about Lloyds dropping their rates, I can't open another RS with them until January. 
We've got some money in the Coventry BS, and I think it might be worth us opening 2 RS and putting the full £500 in both accounts, a bit annoying you can't feed from an existing Coventry account though, unlikely to happen but assuming it stays the same we'd earn £84 rather than £60 from our easy access account. 

Another option is to put in PB's, it would bring our total holding to £70k, any winnings from either account would be reinvested into the lowest account, but not convinced a £20k account would see the 1%

SpanishBlue

Splitting your PBs into 2 accounts of £50k & £20k surely would not affect your chances of winning?

Every PB has the same chance of winning regardless of how you split them.