High Interest Regular Savings Accounts

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Comments

  • 35har1old said:
    35har1old 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 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
    The vast majority do give access without penalty either withdrawal or closure.
  • Albermarle
    Albermarle Posts: 21,085
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    Altior said:
    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. 

    I agree it is a law of diminishing returns. Regarding your comment in bold, it is not only a bit tedious but can be quite time consuming if things do not go smoothly, maybe resulting in e mail exchanges and hanging on for someone to answer the phone.
    Personally I did not retire from a well paid job to get stressed about such issues, so I keep my savings account hopping to the minimum necessary to keep a reasonably competitive rate, but not necessarily always the best.
  • wmb194 said:
    drphila said:
    kaMelo said:
    35har1old said:
    35har1old 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 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.
    BoS is instant access, Halifax you have to close it to get your cash.
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  • fabsaver
    fabsaver Posts: 1,268
    Name Dropper First Post First Anniversary
    Forumite
    Altior said:
    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. 

    I would put myself in the hobby category. I'm early retired and living off savings, so I'm keen to ensure I'm not eroding them too quickly. It keeps my mind active and I enjoy setting up and maintaining the spreadsheets and systems needed.

    I accept though that the reward for regular savers isn't what it was. It's probably easier for me to just keep them running, given that the standing orders are already set up and running. If I was starting out with them now I probably wouldn't bother with any paying under 6%.
  • Eco_Miser
    Eco_Miser Posts: 4,707
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    Forumite
    wmb194 said:
    drphila said:
    kaMelo said:
    35har1old said:
    35har1old 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 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.
    BoS is instant access, Halifax you have to close it to get your cash.

    It's still instant access without penalty though, just mandatory 100% withdrawal. You can open another RS immediately if you close by the 'upgrade' procedure.
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