Saving account interest question.

Bob2000

wmb194 said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

Because they pay better interest rates. You e.g. drip feed the money from a 5% instant access to >5% regular savers and overall earn more than if you'd left the money all year in the 5% instant access account. At the moment I have quite a few 7%+ regular savers.

OK got it now.

Bob2000

wmb194 said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

Because they pay better interest rates. You e.g. drip feed the money from a 5% instant access to >5% regular savers and overall earn more than if you'd left the money all year in the 5% instant access account. At the moment I have quite a few 7%+ regular savers.

OK l understand  it now.

Bob2000

Newbie_John said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

If you have £3600 now and open regular saver (£300 a month, first direct 7%) then in first month you get interests only on £300 - and the £3300 earns 0% interest. Total £126.

If you have £3600 and put it on 5% account from day 1, you get £180 interest.

If you have £0 now, but able to save £300 a month from salary - then that's what is designed to.
Total £126.

Regarding first example you can do a hybrid.
From the 5% account you start withdrawing £300 a month - so will earn about half £90. But the. You will also earn full regular saver £126 - totalling £216.

When you have £50k savings then it could be too much hassle for all these regular savers as they're limited to 1 per account.

Cheers for this.

Bob2000

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

cricidmuslibale

Bob2000 said:

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

@Bob2000 Yes that's right. As the term 'loyalty' suggests, you have to already have savings and/or a mortgage with the provider in question in order to be eligible to open loyalty accounts. The amount of time you have to have already had savings and/or a mortgage with them varies depending on the particular provider's assessment of when you become a 'loyal' customer or member, but more often than not you need to have had savings and/or a mortgage with them for at least 1 year to be eligible for loyalty regular savings accounts, which are typically the highest paying loyalty accounts as far as the interest rate is concerned.

allegro120

Bob2000 said:

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

Yes for most of them it was 1 year, but not always.  For example Ulster Loyalty Saver is available for new customers.  There were some other loyalty-alike accounts that require you to be an existing customer, but without any time conditions (e.g. you could open any account with the provider and become eligible to open high interest account straight away). 

Sarahspangles

Bob2000 said:

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

You may need to wait a year to qualify, but not always. Loyalty offers aren’t predictable, but if you have two or three regular savers you might be pleasantly surprised by an offer that beats other best buys.

There are a couple of other ways for building societies to recognise ‘loyalty’:

• For the last couple of years Nationwide specifically has paid £100 if you have a current account actively in use, plus a savings account or mortgage. But nobody knows if that will continue!
• The other way is to tempt you to stay with them when a regular saver matures, by offering a ‘maturity acount’. Often on maturity a regular saver will become a below-average rate easy access account. These are a trap for people who aren’t reading emails/statements. But sometimes you’ll get a ‘best of’ interest rate to tempt you to leave your money rolling up interest.

PixelPound

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Although you could set up a SO and leave it, I suppose many will be more involved. Rather than someone who whacks in upto £85k and only bothers if there's a better rate elsewhere. 

Most banks who after 12 months once it matures let you open another afterwards. 

allegro120

Sarahspangles said:

Bob2000 said:

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

You may need to wait a year to qualify, but not always. Loyalty offers aren’t predictable, but if you have two or three regular savers you might be pleasantly surprised by an offer that beats other best buys.

There are a couple of other ways for building societies to recognise ‘loyalty’:

• For the last couple of years Nationwide specifically has paid £100 if you have a current account actively in use, plus a savings account or mortgage. But nobody knows if that will continue!
• The other way is to tempt you to stay with them when a regular saver matures, by offering a ‘maturity acount’. Often on maturity a regular saver will become a below-average rate easy access account. These are a trap for people who aren’t reading emails/statements. But sometimes you’ll get a ‘best of’ interest rate to tempt you to leave your money rolling up interest.

I failed both. The first one for the obvious reason - there was no warning.  The second year because I started meeting the conditions too late.  Now it's in my diary for the next January.  If this happened twice in a row, there's a good chance for it to happen again.

Last year's conditions were:
*Between 1 January and 31 March, pay in a minimum of £500 for at least 2 of the months
*Between 1 January and 31 March, make at least 10 payments out of your current account for at least 2 of the months
*have at least £100 in Nationwide savings accounts or Cash ISAs at the end of any day in March

Notepad_Phil

allegro120 said:

Sarahspangles said:

Bob2000 said:

Sarahspangles said:

Bob2000 said:

@Rodders53
So if it's better interest  in a 12 month account  why do so many folks on here get loads of regular saver accounts?

The logical next question is why banks and building societies pay better interest rates for regular savers? It’s because they want to get people saving - with them - and if you are tempted to open one account with them you might use them again for other things like current accounts, loans and mortgages.

Having a few regular savers is useful for people who have a bit of cash to save because cumulatively they earn more interest, and often banks and building societies have ‘loyalty’ accounts for people who already have one account with them.

Will loyalty accounts be accessible only after a certain  time with the provider?

You may need to wait a year to qualify, but not always. Loyalty offers aren’t predictable, but if you have two or three regular savers you might be pleasantly surprised by an offer that beats other best buys.

There are a couple of other ways for building societies to recognise ‘loyalty’:

• For the last couple of years Nationwide specifically has paid £100 if you have a current account actively in use, plus a savings account or mortgage. But nobody knows if that will continue!
• The other way is to tempt you to stay with them when a regular saver matures, by offering a ‘maturity acount’. Often on maturity a regular saver will become a below-average rate easy access account. These are a trap for people who aren’t reading emails/statements. But sometimes you’ll get a ‘best of’ interest rate to tempt you to leave your money rolling up interest.

I failed both. The first one for the obvious reason - there was no warning.  The second year because I started meeting the conditions too late.  Now it's in my diary for the next January.  If this happened twice in a row, there's a good chance for it to happen again.

Last year's conditions were:
*Between 1 January and 31 March, pay in a minimum of £500 for at least 2 of the months
*Between 1 January and 31 March, make at least 10 payments out of your current account for at least 2 of the months
*have at least £100 in Nationwide savings accounts or Cash ISAs at the end of any day in March

Hi, I thought it was to make at least 2 payments for at least 2 of the months rather than 10 payments.