Question about Regular Saver Idea

Aceace

Wow OP, that seems like a lot of hassle to go to for a tiny return, possibly a negative one after inflation.

As you mentioned investing, rather than saving, how about putting some of the funds in Loanpad's Premium account. Its a 60 day notice account, though they're currently offering instant access for a 0.5% fee. The rate drops to 4% from 1st Dec (Currently 4.25%). It's also ISA eligible. Now, here's the drawback: it's not FSCS protected, though it is FCA regulated, so your capital is not protected. Hence its an investment rather than a savings account. Your cash would be automatically split over first charge property secured loans with a maximum LTV of 50% (so property prices would need to drop by more than half for any of your capital to be at risk. Current average LTV is 33% (so even better security on average). Interest is paid daily.

Investments aren't suitable for any cash that you absolutely can't afford to lose, but if you're willing to accept some degree of risk (fairly low risk IMO) it might be worth considering for some of those funds in order to raise the overall return. Take a look here if you're interested. I've been investing with them for over a year now and they've maintained liquidity throughout the covid crisis. 

Reg_Smeeton

This is very similar to what I do. My emergency fund / short term cash is held in Regular Savers, I stagger the opening dates so I currently have one maturing every four months. When an account matures any unallocated cash then goes into Marcus pending reinvestment into the next RS. Im currently earning 2.43% across accounts.

mrkds

Aceace said:

Wow OP, that seems like a lot of hassle to go to for a tiny return, possibly a negative one after inflation.

Perhaps OP doesn't want the risk of a non-FCA protected investment. Markets are choppy at the moment so that is understandable. 

The amount of effort involved in opening a regular saver and setting up a standing order is tiny, so I'd say worth it for an extra £50-ish quid.