Highest Savings Rate

Bigwheels1111

grumbler said:

EssexHebridean said:

MikeJXE said:

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest. 

The “very smart people” presumably realise that a regular saver isn’t intended for a lump sum deposit, though. For someone who has £300 a month surplus after their bills are paid, are they going to get anything better?

That's true. But why on earth does this amazing interest rate disappear after a year if you want to keep saving?

The answer is obvious - because it's a marketing gimmick, not a real 'interest rate'. Even flexible rates don't drop suddenly from 7% to 0% (or so).

If you knew what you were talking about you would not have made your comment.
FD had market leading regular saving rates for year after year. At one point it was 8%.
Then dropped to 6% and a year later the next issue was 5%.

EssexHebridean

grumbler said:

EssexHebridean said:

MikeJXE said:

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest. 

The “very smart people” presumably realise that a regular saver isn’t intended for a lump sum deposit, though. For someone who has £300 a month surplus after their bills are paid, are they going to get anything better?

That's true. But why on earth does this amazing interest rate disappear after a year if you want to keep saving?

The answer is obvious - because it's a marketing gimmick, not a real 'interest rate'. Even flexible rates don't drop suddenly from 7% to 0% (or so).

I think perhaps you need to do some research on Regular Saver accounts. Regardless however, the 7% rate is very real, it’s a great rate for the people the account suits, and if it’s not the way you want to save, then probably best to just move on. 

Sensory

grumbler said:

EssexHebridean said:

MikeJXE said:

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest. 

The “very smart people” presumably realise that a regular saver isn’t intended for a lump sum deposit, though. For someone who has £300 a month surplus after their bills are paid, are they going to get anything better?

That's true. But why on earth does this amazing interest rate disappear after a year if you want to keep saving?

The answer is obvious - because it's a marketing gimmick, not a real 'interest rate'. Even flexible rates don't drop suddenly from 7% to 0% (or so).

That's just the nature of Regular Savers, and they provide a financial benefit despite their limitations. What's wrong with having options, instead of leaving all easy-access savings languishing in standard rate accounts?

grumbler

Bigwheels1111 said:

grumbler said:

EssexHebridean said:

MikeJXE said:

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest. 

The “very smart people” presumably realise that a regular saver isn’t intended for a lump sum deposit, though. For someone who has £300 a month surplus after their bills are paid, are they going to get anything better?

That's true. But why on earth does this amazing interest rate disappear after a year if you want to keep saving?

The answer is obvious - because it's a marketing gimmick, not a real 'interest rate'. Even flexible rates don't drop suddenly from 7% to 0% (or so).

If you knew what you were talking about you would not have made your comment.
FD had market leading regular saving rates for year after year. At one point it was 8%.
Then dropped to 6% and a year later the next issue was 5%.

The rate on the money you saved over a year  drops to zero or so. Yes,  you get 'market leading regular saving rates', but start from the scratch. All 'regular' savings accounts are gimmicks. Real regular saving is gradually growing your balance year after year.

EssexHebridean said:

grumbler said:

EssexHebridean said:

MikeJXE said:

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest. 

The “very smart people” presumably realise that a regular saver isn’t intended for a lump sum deposit, though. For someone who has £300 a month surplus after their bills are paid, are they going to get anything better?

That's true. But why on earth does this amazing interest rate disappear after a year if you want to keep saving?

The answer is obvious - because it's a marketing gimmick, not a real 'interest rate'. Even flexible rates don't drop suddenly from 7% to 0% (or so).

I think perhaps you need to do some research on Regular Saver accounts. Regardless however, the 7% rate is very real, it’s a great rate for the people the account suits, and if it’s not the way you want to save, then probably best to just move on. 

What sort of 'research'? I do take advantage of these accounts, but with clear understanding that they are nothing more than a marketing gimmick. In this respect RBS' and Natwest's regular savers are most honest - you don't have to start from zero after a year. BTW, the current balance of all my regular savers is £16K.

Similarly, I take advantage of various 'rewards', switching bonuses etc.

Band7

grumbler said:

Real regular saving is gradually growing your balance year after year.  .

That’s why real money saving experts use Regular Savings accounts where these pay higher interest than other accounts.

jaypers

Not sure if I’m amused or amazed by this thread. Crikey, everyone on these forums should be here for the good of each other and to help us all maximise what’s available for their savings and investments. Whether you look at Fixed, Easy Access or Regular Saving accounts, each has their own pros and cons. For the uneducated, worth reading this about Regular Savers…….
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

RG2015

Snapshot of society as a whole.

To be fair, this site is way less opinionated than most other social media sites.

Vortigern

msallen said

Well of course all the "smart ones" will have many many regular savers all maturing in different months across the year. 

This^^ is the technique to hold larger sums in regular savers. If you can resist the urge to pile in to every RS as soon as it's announced, you can build a ladder of RSs with one maturing each month, using the matured account to feed the others.  So there's no sudden drop to zero.

RG2015

Vortigern said:

msallen said

Well of course all the "smart ones" will have many many regular savers all maturing in different months across the year. 

This^^ is the technique to hold larger sums in regular savers. If you can resist the urge to pile in to every RS as soon as it's announced, you can build a ladder of RSs with one maturing each month, using the matured account to feed the others.  So there's no sudden drop to zero.

An added dimension to this technique is to mix fixed term accounts in the monthly ladder.

Most regular savers are 1 year, so I mix in some 1 year fixes when there are no regular savers or decent fixes available.

adindas

However high they are now, they are still much lower than the inflation rate which is currently about 11%. So unless you are doing something about it taking some level of riskier decision, but at the same time doing RSA it is already guaranteed you will be losing your money day by day.