High Interest Regular Savings Accounts

DoneWorking
Forumite Posts: 290
Forumite

Is it worth the hassle of keeping a few of these accounts
Options are
Stick with approx 5% in easy access savers with max amount £85000
Or
Set up SO for easy access regular savers with circa 7% but max amount pa of about £3000
Options are
Stick with approx 5% in easy access savers with max amount £85000
Or
Set up SO for easy access regular savers with circa 7% but max amount pa of about £3000
0
Comments
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As 7% is higher than 5%, you get more interest if you make use of the Regular Savers, if only on some of your £85k. You can use the MSE Regular Savings calculator to model the effects of drip feeding from an easy access account.There are now a fair number of Regular Savers paying more than 5%, although not all available any longer for new applicants. What you do depends a lot on the access you need, as some Regular Savers do not allow withdrawals or closure before maturity.
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There's a good thread on regular savers, discussing the best options currently available: https://forums.moneysavingexpert.com/discussion/6106986/regular-savings-accounts-the-best-currently-available-list/p1
7% is more than 5%, and on larger sums it definitely adds up - although the life admin required to manage them also does scale as well.0 -
They are different products with different purposes and value to people who use them. Easy access rates could drop off (or go up) anytime, with a regular saver you know what you are going to get for 12 months.0
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Nebulous2 said:They are different products with different purposes and value to people who use them. Easy access rates could drop off (or go up) anytime, with a regular saver you know what you are going to get for 12 months.1
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Thanks all
Very useful info
A lot of effort over one year for fairly low extra interest1 -
DoneWorking said:Thanks all
Very useful info
A lot of effort over one year for fairly low extra interestI choose the rooms that I live in with care,
The windows are small and the walls almost bare,
There's only one bed and there's only one prayer;
I listen all night for your step on the stair.5 -
DoneWorking said:Thanks all
Very useful info
A lot of effort over one year for fairly low extra interest
I would say they were more appealing 6-12 months ago though. Most regular savers have stayed around the same sort of rate whilst easy access accounts have kept closing the gap.0 -
I would not say filling out a form and setting up a standing order is 'A lot of effort' but that's just me.0
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I certainly think regular savers are worth it and as things stand I will be fully funding 23 of them next month. Personally I don't usually use SOs unless the terms of the account specify they must be used since I prefer not to keep money in a low/no interest current account overnight so 21 of those regular savers will be funded by manual transfer.
I'd say it is probably wise to avoid having all your savings held with one bank in case they suffer technical issues or you suffer a frozen account etc so for me one of the other advantages of multiple regular savers is that you end up with your EA savings spread across multiple different banks/building societies by default without suffering a lower interest rate.
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Bridlington1 said:I certainly think regular savers are worth it and as things stand I will be fully funding 23 of them next month. Personally I don't usually use SOs unless the terms of the account specify they must be used since I prefer not to keep money in a low/no interest current account overnight so 21 of those regular savers will be funded by manual transfer.
I'd say it is probably wise to avoid having all your savings held with one bank in case they suffer technical issues or you suffer a frozen account etc so for me one of the other advantages of multiple regular savers is that you end up with your EA savings spread across multiple different banks/building societies by default without suffering a lower interest rate.I consider myself to be a male feminist. Is that allowed?2
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