Drip feeding into Regular savers VS staying in fixed term accounts

Manchester2024

Hello 

I’m reaching out to see if anyone can convince me on whether I should drip feed savings from my 35-day notice account (currently 5.02%) into some of the regular savers currently out there?

The reason I say that is that it seems like a bit of a faff to jump through the hoops of setting up a current account with Virgin (10%) and First Direct (7%) for example, to access their regular savers, when the maximum that can be saved is £250-£300 and using the MSE savings calculator, it’s only around £150-200 per year. I’m not even sure about the current 7% regular saver accounts, which you don’t have to have a current accounted connected to. 

I know I could in theory set up a few regular savers but my question is.. is it worth that time and effort of keeping a check on the best rates across multiple accounts etc, or just keep all my savings in the current 5.02% notice account?

Thanks!

jaypers

The only downside of setting up a Virgin and/or First Direct Current a/c (if it is a downside) is that it means a hard credit check. Regular savers are well worth having as part of a set of different savings accounts, if you have the funds to feed them of course. Don’t really see it too much of a faff really……some or all of it can be automated and just diarise it as part of your financial routine. And yes, 10.38% and 7% is more than the 5.02% you’ll be getting on the EA acco7nts for that portion of the money you can move. 

Catplan

Only you can decide play about with drip feed figure here https://www.moneysavingexpert.com/savings/regular-savings-calculator/

I think most people here see it as worthwhile, myself included, I currently have 18 RS’s on the go, and by all accounts that not a lot compared to quite a few posters.

t1redmonkey

This sort of thing is always going to be up to the individual.  Though I would say a lot of the time people overegg how time consuming it is to do things like set up a current account or make the payments to their various regular savers every month (maybe in some cases without even trying for themselves).

For instance, when the Virgin RS came out recently, I went from not being a customer of theirs, to having the current account + RS funded and up and running within 10 minutes or so.

And I fund around 20-25 RS's every month (I do it manually, I don't have standing orders).  Maybe takes 20-30 seconds for each payment at most.

I don't think either of these things are too time consuming to make them not worth doing, but again, up to the individual (how busy they are, how tech savvy they are, how much they need the additional interest they'd earn, etc.).

masonic

The best way to use these accounts is to save monthly from income. Then at maturity, dump the proceeds into a fix, or invest, spend etc. The second best way is to space several out across the year and use the maturing ones to fund the others in a perpetual cycle.

Several of these accounts are fixed rate, so opt for those if you don't like keeping track of rate changes.

Personally I set a minimum rate I'm willing to accept for the hassle (currently 6%} and try to open one every couple of months to keep money cycling around. Others use them to build their ISA allowance over the year. There are plenty of use-cases.

jameseonline

You'll get people on here constantly switching their current account I however stay in systems so can easily open new accounts as they come along 😁.

So it may take time initially to get setup with a current account &/or stay with a bank etc for a certain time I think it's worth it for the best accounts

surreysaver

Virgin do lots of loyalty products such as ISAs, so worth having a current account with them.
For a lot of us, its fun applying for and maintaining these accounts. Once its set up, its set up, so its only the opening stage that's a faff. Most accounts aren't really a faff to open anyway, just five minutes online 

AmityNeon

When the facts and figures are laid out and the return is mathematically a net positive, only you can decide whether the amount is worth your time and effort. It requires a certain mindset and discipline, so it's not suitable for everyone. Some will go out of their way for an extra £1, whereas others won't bother for an extra £50 (yet will post here about not bothering, probably just to really convince themselves it's not worth it whilst they follow a thread about a newly-released product for which others are applying).

Nebulous2

I've a lot of bank accounts already. Most of them I was paid to open, or am paid, either in cash or kind, to maintain.

I'm on my second 7% saver from first direct, but I was also paid something like  £150 to open the account. 

I've about 7 RS they aren't as well spaced as I'd like, and it can be a drag scraping together the payments every month. Yet I'm pretty happy with my setup on the whole. 

For many people here it has become a game / hobby if you like. If personal finance doesn't interest motivate you, and you find it a drag, then yes it has a time cost. For a lot of people here they genuinely can't think of anything better they could do with that time! 

I'm slightly neutral on that. I don't watch TV, spend a lot of time in active pursuits, but at home I'm often online anyway, so don't see any harm or loss in squeezing a few pounds from it. 

Manchester2024

Catplan said:

Only you can decide play about with drip feed figure here https://www.moneysavingexpert.com/savings/regular-savings-calculator/

I think most people here see it as worthwhile, myself included, I currently have 18 RS’s on the go, and by all accounts that not a lot compared to quite a few posters.

Thanks : do you have any recommendations for managing all those accounts please?

surreysaver

Manchester2024 said:

Catplan said:

Only you can decide play about with drip feed figure here https://www.moneysavingexpert.com/savings/regular-savings-calculator/

I think most people here see it as worthwhile, myself included, I currently have 18 RS’s on the go, and by all accounts that not a lot compared to quite a few posters.

Thanks : do you have any recommendations for managing all those accounts please?

An Excel spreadsheet, with the accounts listed in date order of their maturity date.

I've just counted mine - I've got 34.  And there's still others which I haven't opened yet, as I'm trying to spread the maturities out to make cashflow easier this time next year