Saving account interest question.

allegro120

Notepad_Phil said:

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.

Thank you for correcting me. 10 payments was an alternative option. Correct version was:

"EITHER

• In two of the three months of January 2024, February 2024 and March 2024, you must:
  • have received at least £500 into your current account (transfers in from other Nationwide accounts do not count), and
  • have made at least two payments out of your current account.

OR

• In two of the three months of January 2024, February 2024 and March 2024, you must have made at least 10 payments out of your current account."

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/#1-are-you-eligible-to-receive-the-payment