High Interest Regular Savings Accounts

surreysaver

DoneWorking said:

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

Obviously only you can decide whether its worth the hassle. I've got about £30k sitting in regular savers at the moment, so assuming that's an average 1.5% more than what I'd get in an easy access account that's an extra £450 or so a year 

Bridlington1

surreysaver said:

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. 

Although I fund mine with standing orders from an account with an overdraft, so that solves the issue of keeping funds overnight not earning interest!

It's a good idea, I do the a similar sort of thing when I write cheques. I just prefer to use faster payments rather than SOs anyway since I'm forever chopping and changing which regular savers I'm paying into, how much I'm paying into each etc so I just find it simpler to fund everything with faster payments rather than having to remember to cancel/change a SO each time I close a regular saver/reduce its funding down to the minimum. That's mostly just personal preference on my part though to be fair.

At the moment I don't have a large enough arranged overdraft limit to cover all of my regular savers anyway so I'd still be using faster payments to fund most of my regular savers even if I funded as many as I could from accounts with overdrafts. 

35har1old

friolento said:

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.

As you now can receive 6.2% on 1 Yr term on as little as £500 Regular saver paying less than that need to be curtailed to the minimum amount payable in the hope that they will raise the rates to compete

35har1old

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

Bridlington1

35har1old said:

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

I wouldn't be better off using 1yr bonds, I'm hoping to use the money to buy my first home within the next year so bonds wouldn't be much use to me. Plus regular savers can be used as an alternative to easy access accounts so as far as I'm concerned anything at 5% or above is worth it for me if it allows penalty free withdrawals/early closure.

I want to maximise every penny of interest I'm getting so for me having any money in a low/no interest current account is best avoided and you get quicker at it as time goes on so in my case I wouldn't be better off to using SOs for all of my regular savers.

35har1old

Bridlington1 said:

35har1old said:

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

I wouldn't be better off using 1yr bonds, I'm hoping to use the money to buy my first home within the next year so bonds wouldn't be much use to me. Plus regular savers can be used as an alternative to easy access accounts so as far as I'm concerned anything at 5% or above is worth it for me if it allows penalty free withdrawals/early closure.

I want to maximise every penny of interest I'm getting so for me having any money in a low/no interest current account is best avoided and you get quicker at it as time goes on so in my case I wouldn't be better off to using SOs for all of my regular savers.

Not all regular savers give you instant access without a penalty

kaMelo

35har1old said:

Bridlington1 said:

35har1old said:

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

I wouldn't be better off using 1yr bonds, I'm hoping to use the money to buy my first home within the next year so bonds wouldn't be much use to me. Plus regular savers can be used as an alternative to easy access accounts so as far as I'm concerned anything at 5% or above is worth it for me if it allows penalty free withdrawals/early closure.

I want to maximise every penny of interest I'm getting so for me having any money in a low/no interest current account is best avoided and you get quicker at it as time goes on so in my case I wouldn't be better off to using SOs for all of my regular savers.

Not all regular savers give you instant access without a penalty

No not all but most do in one way or another. That's why it's important to read terms and conditions as to whether, and how, access is possible. 

Accounts such as Halifax/Lloyds/BoS, Coventry FHS Issue 1 operate like an easy access account in that you can withdraw money as and when you wish. Principality however doesn't allow ad hoc withdrawals but you can close the account and access the full amount with all interest due.  The rates offered on these type of accounts should be compared to easy access accounts as essentially that is what they are, the only restriction is on the amount you can deposit.

Other regular savers such as HSBC or First Direct, access is possible but it will come with an interest rate penalty. The full interest rate is only available if you let the accounts run to maturity so these accounts I would compare rates with 1 year fixed accounts.

Coventry FHS Issue 2 allow access but with either 60 days notice or instantly with 60 days interest penalty on the sum withdrawn. The rate on this account I would compare with a similar notice account.

Once you understand what type of account you're comparing a regular saver with it is easier to work out whether it's competitive or not.

drphila

kaMelo said:

35har1old said:

Bridlington1 said:

35har1old said:

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

I wouldn't be better off using 1yr bonds, I'm hoping to use the money to buy my first home within the next year so bonds wouldn't be much use to me. Plus regular savers can be used as an alternative to easy access accounts so as far as I'm concerned anything at 5% or above is worth it for me if it allows penalty free withdrawals/early closure.

I want to maximise every penny of interest I'm getting so for me having any money in a low/no interest current account is best avoided and you get quicker at it as time goes on so in my case I wouldn't be better off to using SOs for all of my regular savers.

Not all regular savers give you instant access without a penalty

No not all but most do in one way or another. That's why it's important to read terms and conditions as to whether, and how, access is possible. 

Accounts such as Halifax/Lloyds/BoS, Coventry FHS Issue 1 operate like an easy access account in that you can withdraw money as and when you wish. Principality however doesn't allow ad hoc withdrawals but you can close the account and access the full amount with all interest due.  The rates offered on these type of accounts should be compared to easy access accounts as essentially that is what they are, the only restriction is on the amount you can deposit.

Other regular savers such as HSBC or First Direct, access is possible but it will come with an interest rate penalty. The full interest rate is only available if you let the accounts run to maturity so these accounts I would compare rates with 1 year fixed accounts.

Coventry FHS Issue 2 allow access but with either 60 days notice or instantly with 60 days interest penalty on the sum withdrawn. The rate on this account I would compare with a similar notice account.

Once you understand what type of account you're comparing a regular saver with it is easier to work out whether it's competitive or not.

My Hfax and BoS RSs don't allow withdrawals, only closure.

wmb194

drphila said:

kaMelo said:

35har1old said:

Bridlington1 said:

35har1old said:

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. 

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. 

If any of the 23 are paying less than 6.2% would you not be bitter of opening 1yr bonds with funding of £500 each every month.
You same to be willing to spend time doing two manual transfers for each account one transfer into a the low/no interest  current account and the onward transfer to the regular saver of course you could make one large transfer to the current account and then make the 21 transfers in the one day same's a bit time consuming.
Would it not be bitter to have them setup as SO and only transfer the larger sum just prior to scheduled SO
Transfer of say £5000 at 5% one day prior to scheduled date for 12 mths = £8.22

I wouldn't be better off using 1yr bonds, I'm hoping to use the money to buy my first home within the next year so bonds wouldn't be much use to me. Plus regular savers can be used as an alternative to easy access accounts so as far as I'm concerned anything at 5% or above is worth it for me if it allows penalty free withdrawals/early closure.

I want to maximise every penny of interest I'm getting so for me having any money in a low/no interest current account is best avoided and you get quicker at it as time goes on so in my case I wouldn't be better off to using SOs for all of my regular savers.

Not all regular savers give you instant access without a penalty

No not all but most do in one way or another. That's why it's important to read terms and conditions as to whether, and how, access is possible. 

Accounts such as Halifax/Lloyds/BoS, Coventry FHS Issue 1 operate like an easy access account in that you can withdraw money as and when you wish. Principality however doesn't allow ad hoc withdrawals but you can close the account and access the full amount with all interest due.  The rates offered on these type of accounts should be compared to easy access accounts as essentially that is what they are, the only restriction is on the amount you can deposit.

Other regular savers such as HSBC or First Direct, access is possible but it will come with an interest rate penalty. The full interest rate is only available if you let the accounts run to maturity so these accounts I would compare rates with 1 year fixed accounts.

Coventry FHS Issue 2 allow access but with either 60 days notice or instantly with 60 days interest penalty on the sum withdrawn. The rate on this account I would compare with a similar notice account.

Once you understand what type of account you're comparing a regular saver with it is easier to work out whether it's competitive or not.

My Hfax and BoS RSs don't allow withdrawals, only closure.

The BoS reg saver is instant access.

Altior

It's a law of diminishing returns in a sense. You're always going to get the type of people that will look to squeeze every penny they can, whatever it takes, that's the ethos of this site essentially. 

When rates were near zero, there was tangible reward for hoop jumping to get say 5% when 'normal' accounts were sub 1%.

This has now changed obviously, and there is less reward for said hoop jumping. I'm sure for some people it's bordering on a hobby and they love to keep/monitor records, running multiple accounts, DDs, log ins, but for others it is tedious. The margin is probably now not worth the tedium, if you are in that latter bracket.