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Drip feeding into Regular savers VS staying in fixed term accounts

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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!
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Comments

  • jaypers
    jaypers Posts: 1,038 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    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
    Catplan Posts: 411 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    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.
  • masonic
    masonic Posts: 27,227 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 19 August 2024 at 9:18PM
    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
    jameseonline Posts: 1,065 Forumite
    1,000 Posts First Anniversary Name Dropper
    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
    surreysaver Posts: 4,814 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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 
    I consider myself to be a male feminist. Is that allowed?
  • AmityNeon
    AmityNeon Posts: 1,085 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper
    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
    Nebulous2 Posts: 5,672 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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. 
  • 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
    surreysaver Posts: 4,814 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 20 August 2024 at 7:39AM
    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 
    I consider myself to be a male feminist. Is that allowed?
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