Regular savers

tightfist8art

First post so go easy please !
Trying to get my head around whether regular saver accounts are still worth drip feeding money into  , given the increase in general savings rates . Take First Direct as an example paying 7% . Saving £300 a month =  £3600  in 12 months . This pays £136.50 in interset . 
Our Saga saver easy access pays 3.75% pa . Leaving the £3600 in there as a lump sum = £137.34 interest . 
Am I missing something obvious here or are regular savers not worth it anymore ?

Catplan

Still worth it, drip feed the 300 a month from EA account into R/S account, going via current account if needed, 7% is greater than 3.75 or even the top paying EA accounts at 4.21%.

Barkin

tightfist8art said:

First post so go easy please !
Trying to get my head around whether regular saver accounts are still worth drip feeding money into  , given the increase in general savings rates . Take First Direct as an example paying 7% . Saving £300 a month =  £3600  in 12 months . This pays £136.50 in interset . 
Our Saga saver easy access pays 3.75% pa . Leaving the £3600 in there as a lump sum = £137.34 interest . 
Am I missing something obvious here 

Yes. 7% is more than 3.75%

Drip feed that £300/month and your £3600 will make almost £200 interest. 

Bigwheels1111

Dont think of it a savings, think just put spare cash into it thats sitting in your bank account.

Each month my savings interest gets paid into my bank and then funds regular savings.

Albermarle

tightfist8art said:

First post so go easy please !
Trying to get my head around whether regular saver accounts are still worth drip feeding money into  , given the increase in general savings rates . Take First Direct as an example paying 7% . Saving £300 a month =  £3600  in 12 months . This pays £136.50 in interset . 
Our Saga saver easy access pays 3.75% pa . Leaving the £3600 in there as a lump sum = £137.34 interest . 
Am I missing something obvious here or are regular savers not worth it anymore ?

What you are missing is that if you say had exactly £3600 in your Saga account and add £300 a month to the First direct account, you will be gaining interest on the £300 at 7% and still gaining 3.75% on the remaining £3300.
So at the end of the 12 months you will have gained interest on both accounts, not just solely on one or the other.

ColdIron

tightfist8art said:

First post so go easy please !

OK

Am I missing something obvious here or are regular savers not worth it anymore ?

What you are missing is that you will also earn interest in your Saga account in addition to the RS

Try the RS Calculator. Choose the 'drip feed' option and enter £3,600 into the Lump Sum box

https://www.moneysavingexpert.com/savings/regular-savings-calculator/

It should look like this

housebuyer143

Why are people asking this? 7% is better than 4%... I don't understand why this gets asked over and over

Bigwheels1111

housebuyer143 said:

Why are people asking this? 7% is better than 4%... I don't understand why this gets asked over and over

The average person is obviously uneducated.

I was in Asda years ago, Dolmio sauce was £1.30.
The offer was 2 for £1.
I pointed this out to a lady who picked up just one.
She said I only need one.
I said but 2 will save you £0.30p and you can put 1 in the donations trolley.
But I only need one she said agin.
I gave up.

jaypers

Put £3600 into your Saga account and transfer £300 of it per month to the FD Reg Saver. Over a year you’ll get about £68 earned on Saga plus the £136.50 from FD, so £204.50

Yes, you’re missing something obvious that gets asked nearly every day on here. 

Khaderbhai

Bigwheels1111 said:

housebuyer143 said:

Why are people asking this? 7% is better than 4%... I don't understand why this gets asked over and over

The average person is obviously uneducated.

I was in Asda years ago, Dolmio sauce was £1.30.
The offer was 2 for £1.
I pointed this out to a lady who picked up just one.
She said I only need one.
I said but 2 will save you £0.30p and you can put 1 in the donations trolley.
But I only need one she said agin.
I gave up.

Certainly was not her Dolmio day. 

Beddie

tightfist8art said:

First post so go easy please !
Trying to get my head around whether regular saver accounts are still worth drip feeding money into  , given the increase in general savings rates . Take First Direct as an example paying 7% . Saving £300 a month =  £3600  in 12 months . This pays £136.50 in interset . 
Our Saga saver easy access pays 3.75% pa . Leaving the £3600 in there as a lump sum = £137.34 interest . 
Am I missing something obvious here or are regular savers not worth it anymore ?

Others above have explained that you do indeed get more interest if you drip money into a regular saver. What you have to decide, is if it's worth the effort for an extra £50 or so a year. Some people would do it for 50p a year, whereas others couldn't be bothered with it.