4+ Regular saver accounts vs Easy access

Joshuaakinbohun24

For the next 12 months would it be better to make use of 4 regular saver accounts (£250pm, 2.75% int.) or to add the £12,000 immediately to an easy saver which already has a balance of £10,000 (1% int.)?

arsenalboy

put the £10,000 in the easy access account and transfer out the 1K per month to the reg savers, this gives the maximum return.

[Deleted User]

Hi,

using the MSE savings calculator, £1000/month @2.75%,

After saving £1,000 a month for 1 year, you will have £12,178.01 in savings, meaning you've earned £178.01 interest,

whereas a lump sum £12000  @1% £120.

colsten

Unless there are 2 people sharing some of the £12,000, the flaw in the thinking is that you cannot actually find enough places for £1,000 @ 2.75%. FD £300 + HSBC £250 + M&S £250 = £700 a month, £8,400 a year. 

The next hurdle is to actually get the accounts. Unless you already have an FD current account, you cannot get their Regular Saver. Both HSBC and M&S also require a current account with them, and they are rather picky as to who they accept. Having said this, if you are able to get their respective Regular Savers, it's a no brainer to use them. Also, if you are new to HSBC, they currently offer a £125 bribe for current account switchers - more than you can get in interest from their RS.

whitesmith

In addition, of course, FD are not accepting new  current account applications ATM.

Bagsof

Is it a good idea to open a joint account with my son?

grumiofoundation

Bagsof said:

Is it a good idea to open a joint account with my son?

It would be best to start your own thread - possibly on the budgeting and back accounts forum rather than saving and investments? (also provide far, far more detail otherwise no one will be able to answer). 

colsten

whitesmith said:

In addition, of course, FD are not accepting new  current account applications ATM.

Exactly. That's why I said Unless you already have an FD current account, you cannot get their Regular Saver

grumiofoundation said:

Bagsof said:

Is it a good idea to open a joint account with my son?

It would be best to start your own thread - possibly on the budgeting and back accounts forum rather than saving and investments? (also provide far, far more detail otherwise no one will be able to answer). 

Agree, a lot more detail is needed to be able to answer the question, and @Bagsof should open their own thread for it. Whether on the savings & investments board or on the budgeting & bank accounts board obviously depends whether the question is about a joint savings or a joint current account.

wiseonesomeofthetime

colsten said:

Unless there are 2 people sharing some of the £12,000, the flaw in the thinking is that you cannot actually find enough places for £1,000 @ 2.75%. FD £300 + HSBC £250 + M&S £250 = £700 a month, £8,400 a year. 

Oh dear @colsten

Pray your maths has let you down.

£300+£250+£250=£800pm, meaning £9,600pa

colsten

wiseonesomeofthetime said:

colsten said:

Unless there are 2 people sharing some of the £12,000, the flaw in the thinking is that you cannot actually find enough places for £1,000 @ 2.75%. FD £300 + HSBC £250 + M&S £250 = £700 a month, £8,400 a year. 

Oh dear @colsten

Pray your maths has let you down.

£300+£250+£250=£800pm, meaning £9,600pa

Can I blame Covid-19 please. Alternatively, it's Alzheimers. 😂

The basic message stands, though.

Joshuaakinbohun24

[Deleted User] said:

Hi,

using the MSE savings calculator, £1000/month @2.75%,

After saving £1,000 a month for 1 year, you will have £12,178.01 in savings, meaning you've earned £178.01 interest,

whereas a lump sum £12000  @1% £120.

Hello,

If the lump sum of £12,000 is added to £10,000 - so £22,000 altogether, then @1% would be £220 interest. I am correct in thinking this would be more fruitful?