regular saving accounts

JAV39

Are regular savings account worth it? the interest % are good but can only put £150- £400 per month max. As they pay annual interest, i assume you lose out on compounding interest.
So are you better off just putting in the best % interest account?
Had money in an isa which was paying rubbish% so trying to maximise (10K)

ColdIron

7.00% (First Direct) is better than 5.20% (Ulster Bank). It's as simple as that

Expotter

Yes, they are worth it, but they require a bit of extra admin on your part, sometimes having to open new current accounts in order to access the regular savers and/or depositing money regularly, which can be set up as standing orders if you want.
For a good explanation on how they work see

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
.
especially the bit about drip-feeding

Bigwheels1111

I have 12 on the go 3k a month , I will look into renewing them when they mature.

12 sounds like a lot but some on here have 30/40 on the go.

My issue comes in July, I will run out of cash a month before the first RS pays out.

So I need to borrow 3k for a few weeks.

I keep spare cash in an easy access @ 5.2% i think it is.

Move the RS payments over on the last day of the month at 23.30pm to pay out on the 1st of the month.

I only have RS'S that are above 5.2%.

deinoflex

The Natwest digital regsave pays interest monthly so it does get compounded -

https://www.natwest.com/savings/digital-regular-saver.html

enthusiasticsaver

JAV39 said:

Are regular savings account worth it? the interest % are good but can only put £150- £400 per month max. As they pay annual interest, i assume you lose out on compounding interest.
So are you better off just putting in the best % interest account?
Had money in an isa which was paying rubbish% so trying to maximise (10K)

You can do both in that you open up the regular saver and feed it monthly from income or you could stick £2000 in the best paying account you can find with easy access and move over £200 or £400 each month to a regular saver if that is a better rate. 

I personally never do more than two regular savers (only this morning I have over funded one by mistake) due to having to keep on top of the admin and remembering how much each will take every month.  I will be doing standing orders from my current account in future. 

WillPS

The most important thing to understand about regular savers vs normal fixed savings is that it's not 'either/or'. In your case you should find a home/several homes for your lump sum first and foremost, make sure at least some of it is accessible, then you can dabble in regular savings to earn an additional 1-2% on some of it if you like.

allegro120

enthusiasticsaver said:

JAV39 said:

Are regular savings account worth it? the interest % are good but can only put £150- £400 per month max. As they pay annual interest, i assume you lose out on compounding interest.
So are you better off just putting in the best % interest account?
Had money in an isa which was paying rubbish% so trying to maximise (10K)

You can do both in that you open up the regular saver and feed it monthly from income or you could stick £2000 in the best paying account you can find with easy access and move over £200 or £400 each month to a regular saver if that is a better rate. 

I personally never do more than two regular savers (only this morning I have over funded one by mistake) due to having to keep on top of the admin and remembering how much each will take every month.  I will be doing standing orders from my current account in future. 

I have 30 of them. It would be too challenging, if not impossible, for me to keep the details my head.  I use spreadsheet where all of them are listed, this makes it easy to manage.  I've never missed a payment or overpaid.

friolento

Bigwheels1111 said:

I have 12 on the go 3k a month , I will look into renewing them when they mature.

12 sounds like a lot but some on here have 30/40 on the go.

My issue comes in July, I will run out of cash a month before the first RS pays out.

So I need to borrow 3k for a few weeks.

Wouldn't it be a better idea to skip some of your deposits, or at least reduce them to any minimum some RSs require? Unless you can borrow on a super-transfer 0% credit card, which are rare as hens' teeth.

friolento

deinoflex said:

The Natwest digital regsave pays interest monthly so it does get compounded -

https://www.natwest.com/savings/digital-regular-saver.html

The compounding 'issue' is a red herring. All you need to compare is the AER of accounts. Whether they pay monthly or annually has no bearing on the AER.

Bigwheels1111

friolento said:

Bigwheels1111 said:

I have 12 on the go 3k a month , I will look into renewing them when they mature.

12 sounds like a lot but some on here have 30/40 on the go.

My issue comes in July, I will run out of cash a month before the first RS pays out.

So I need to borrow 3k for a few weeks.

Wouldn't it be a better idea to skip some of your deposits, or at least reduce them to any minimum some RSs require? Unless you can borrow on a super-transfer 0% credit card, which are rare as hens' teeth.

The wife is giving it to me, she is not happy.

But it will only be for 14 days max.

Will only cost me a bunch of flowers.