Funding the 7% first direct regular saver? P.S. Changing the standing order date will lose you cash

Stargunner

"The date of your standing order payment needs to remain the same once set up"

The meaning and implication of this clause are both vague and ambiguous, and therefore carries very little weight in practice.

I disagree with you. It clearly states that they will set up the SO for you when they open your account.

How do I make payments into my regular saver?

Your first payment will be taken from your 1st Account on the day we open your Regular Saver Account. This will be followed by another 11 monthly payments which can only be made by standing order from your 1st Account (we will set this up for you). 

AmityNeon

Stargunner said:

AmityNeon said:

bristolleedsfan said:

"The date of your standing order payment needs to remain the same once set up"

The meaning and implication of this clause are both vague and ambiguous, and therefore carries very little weight in practice.

I disagree with you. It clearly states that they will set up the SO for you when they open your account.

What does the phrase "needs to" imply? What is the result if this 'need' is not fulfilled?

Yorkshire_Pud

PloughmansLunch said:

Not as far as I know, it’s even stricter than the HSBC regular saver as it doesn’t even allow transfers in from the FD current account.

Yep seems the only sensible way to run the account after reading the t&c and some posts after yours, can’t take the theoretical workarounds seriously. First direct themselves set up the initial transfer and subsequent eleven standing orders on the monthly anniversary of account opening, no scope to change it to the 1st of the month as I was hoping without account closure.

So I will open a RS next month a few days into the first week. No benefit to making it any more complicated than that and aim to fund £300 pm until maturity when the standing order fd set up lapses. 

Also an outside hope that they increase the interest rate by the time I open the account +14 day cooling off period.

Cheers for the help and ideas all.

Band7

 Amazing how people can argue about pennies.

AmityNeon

Yorkshire_Pud said:

PloughmansLunch said:

Not as far as I know, it’s even stricter than the HSBC regular saver as it doesn’t even allow transfers in from the FD current account.

Yep seems the only sensible way to run the account after reading the t&c and some posts after yours, can’t take the theoretical workarounds seriously. First direct themselves set up the initial transfer and subsequent eleven standing orders on the monthly anniversary of account opening, no scope to change it to the 1st of the month as I was hoping without account closure.

It's not a theoretical workaround; it works in practice, with no loss of interest. Everyone is free to do as they wish of course, but this forum is more than just regurgitating providers' terms and conditions.

Band7 said:

Amazing how people can argue about pennies.

Not just pennies, due to the potential of the full balance earning interest for almost two months instead of one.

The average interest for 12 approximately equal periods is £136.50. If the account was opened/funded on 30th March 2023, and a manual standing order was then created for the 1st of each subsequent month, interest would equal £154.36, an increase of £17.86.

Stargunner

AmityNeon said:

Yorkshire_Pud said:

PloughmansLunch said:

Not as far as I know, it’s even stricter than the HSBC regular saver as it doesn’t even allow transfers in from the FD current account.

Yep seems the only sensible way to run the account after reading the t&c and some posts after yours, can’t take the theoretical workarounds seriously. First direct themselves set up the initial transfer and subsequent eleven standing orders on the monthly anniversary of account opening, no scope to change it to the 1st of the month as I was hoping without account closure.

It's not a theoretical workaround; it works in practice, with no loss of interest. Everyone is free to do as they wish of course, but this forum is more than just regurgitating providers' terms and conditions.

Band7 said:

Amazing how people can argue about pennies.

Not just pennies, due to the potential of the full balance earning interest for almost two months instead of one.

The average interest for 12 approximately equal periods is £136.50. If the account was opened/funded on 30th March 2023, and a manual standing order was then created for the 1st of each subsequent month, interest would equal £154.36, an increase of £17.86.

The T&C’s state that you can’t change the SO date, so you may end not getting the 7% by doing that.

AmityNeon

Stargunner said:

AmityNeon said:

Yorkshire_Pud said:

PloughmansLunch said:

Not as far as I know, it’s even stricter than the HSBC regular saver as it doesn’t even allow transfers in from the FD current account.

Yep seems the only sensible way to run the account after reading the t&c and some posts after yours, can’t take the theoretical workarounds seriously. First direct themselves set up the initial transfer and subsequent eleven standing orders on the monthly anniversary of account opening, no scope to change it to the 1st of the month as I was hoping without account closure.

It's not a theoretical workaround; it works in practice, with no loss of interest. Everyone is free to do as they wish of course, but this forum is more than just regurgitating providers' terms and conditions.

Band7 said:

Amazing how people can argue about pennies.

Not just pennies, due to the potential of the full balance earning interest for almost two months instead of one.

The average interest for 12 approximately equal periods is £136.50. If the account was opened/funded on 30th March 2023, and a manual standing order was then created for the 1st of each subsequent month, interest would equal £154.36, an increase of £17.86.

The T&C’s state that you can’t change the SO date, so you may end not getting the 7% by doing that.

There have been no reports from those who have amended their deposit dates of reduced interest rates being applied, and there are no terms or conditions stipulating reduced interest as a result of doing so. What happens in practice already automatically contravenes the T&Cs when standing orders are scheduled very late in a calendar month; entire months are skipped and as a result, two standing order deposits are made in the following month.

It's true, as a matter of capability (not permissibility), that the amount of the standing order can be changed by contacting FD, but the date of which cannot be; independently thereto, it's also perfectly true that standing orders can be cancelled, and another created for a different deposit date.

pecunianonolet

I am planning to open my reg saver with them on the 6th of April. I worry about changing the SO after opening to the 1st of each month, if at all possible. At least, if opened on the 6th I can put cash away for a full year, get the nice and high rate but the interest payment will be part of tax year 24/25 PSA.

Stargunner

pecunianonolet said:

I am planning to open my reg saver with them on the 6th of April. I worry about changing the SO after opening to the 1st of each month, if at all possible. At least, if opened on the 6th I can put cash away for a full year, get the nice and high rate but the interest payment will be part of tax year 24/25 PSA.

They told me on chat that only the amount can be changed and not the date.
Easier to just leave it as the date that they set, that is what I have done.

dealyboy

Hi @AmityNeon ...

AmityNeon said:

Yorkshire_Pud said:

PloughmansLunch said:

Not as far as I know, it’s even stricter than the HSBC regular saver as it doesn’t even allow transfers in from the FD current account.

Yep seems the only sensible way to run the account after reading the t&c and some posts after yours, can’t take the theoretical workarounds seriously. First direct themselves set up the initial transfer and subsequent eleven standing orders on the monthly anniversary of account opening, no scope to change it to the 1st of the month as I was hoping without account closure.

It's not a theoretical workaround; it works in practice, with no loss of interest. Everyone is free to do as they wish of course, but this forum is more than just regurgitating providers' terms and conditions.

Band7 said:

Amazing how people can argue about pennies.

Not just pennies, due to the potential of the full balance earning interest for almost two months instead of one.

The average interest for 12 approximately equal periods is £136.50. If the account was opened/funded on 30th March 2023, and a manual standing order was then created for the 1st of each subsequent month, interest would equal £154.36, an increase of £17.86.

Just to declare two interests:
- I have a high regard for your intellect and have learned a lot from your posts
- I have recently opened an FD regular saver and am paying in £300 per month by SO on the 27th (2nd payment tomorrow).

How do you get to £154.36? and why does it matter what day of the month your SO is? ... sorry.

Surely interest is earned daily and the duration of the saver is 365 days so each payment will gain 365 days interest minus the number of days since the opening first payment.