which account for low entry regular saving

dgwebster

i wish to open a savings account to deposit £110 a month into. Its my yearly bills account such as road tax tv license etc etc and xmas funds so i'd like to move it for higher interest during the static time.

However i am a bit lost on where to get my account. Preferably i'd like the following:

Decent rates
Open account with less than £110
Fairly quick access a day or two is ok instant preferred
Free withdrawels - this can be limited to say 6 a year minimum before i'd have to pay for them.

Any suggestions?

Steve_xx

A Premier Current Account with Alliance & Leicester that pays 12% on your balance for the first year might be best for you. See here:

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-credit-interest&ct=curracchome

neilp

Agreed, though would have to have a Premier Current Account with A&L. Otherwise, Skipton Bulding Society have an excellent regular savings account, which allows you to save up to £250 per month , for a year, at 7.55%. The reasons why I went for this were that I don't want to open another current account, and I want the option of access to my money before the year is up (though I don't plan to do this). Skipton requires you to close the account to withdraw money before a year is up, but pays full interest up to that point.

Steve_xx

The Skipton is ok, but, you you will be getting 4.5% less per annum in interest, and you wont get the free european travel insurance that you would with A&L.

Also, I note that the Skipton rate is variable, whereas the A&L rate is fixed.

neilp

Absolutely - the A&L accounts look like a very good deal. I decided not to go for them because I'm not looking to change current account, and did not want to open a spare current account, which would require minimum funding of £500 per month.

If these are not issues, I would definitely go with the A&L account. Otherwise, I would say that Skipton is currently the most competitive of the stand alone regular savings accounts (though YBS gives it a run for its money under certain circumstances).

One thing to note with the Skipton account is that it is not online, but either branch based or (I think) postal. This is not a problem for me because there is a branch within a couple of minutes walk of my office. If there is not a branch nearby, I could see why the account would not be so convenient.

Steve_xx

Yes, I understand your rationale and can see why the choice you made is most suitable for your needs.

thumshie

The OP states he wants to make withdrawls - upto 6! A+L Premier Regular Saver allows none. Nor does the Skipton!!

While the title of the post mentions regular savings, IMO, the OP would be better of with say the best instant access account - sorry not looked but I'm sure theres a thread or sticky here - ICESAVE, ICICI and sainsbury's were all good at one time..

If it REALLY must be a regular saver account, the only one that comes close to the OP'S criteria is Lloyds - which also needs a Lloyds current account to open.

Mikeyorks

Can't really understand the A&L response ...... it doesn't align with the OP, which categorises multiple withdrawals and circa £110pm input. The A&L account doesn't accord with either.

With that modest sum / allied to easy access - would probably be best seeing what his/her current account provider offers in terms of websavers and going for that. Makes it easy then to move money, both ways, as needs dictate. And the interest loss between 'best buy' and 'average' accounts ....on a potential average £660 [assuming bills fairly evenly spread] (12x£110/2 x.80 - if taxable) in the account surely can't be a major factor?

For the same reason as the A&L account isn't suitable (doesn't have the flexibility) - nor are most Regular Savers. I think the heading merely reflects it's 'housekeeping' money that will be put away on a regular basis?

Steve_xx

Mikeyorks wrote: »

Can't really understand the A&L response ...... it doesn't align with the OP, which categorises multiple withdrawals and circa £110pm input. The A&L account doesn't accord with either.

With that modest sum / allied to easy access - would probably be best seeing what his/her current account provider offers in terms of websavers and going for that. Makes it easy then to move money, both ways, as needs dictate. And the interest loss between 'best buy' and 'average' accounts ....on a potential average £660 [assuming bills fairly evenly spread] (12x£110/2 x.80 - if taxable) in the account surely can't be a major factor?

For the same reason as the A&L account isn't suitable (doesn't have the flexibility) - nor are most Regular Savers. I think the heading merely reflects it's 'housekeeping' money that will be put away on a regular basis?

Yes, you're right and I'm wrong.