Optimum number of Regular Savings accounts

ShinyStarlight1

Is there an ideal number of Regular Saver accounts to have?

I have just opened two and the interest gained will be relatively small. This got me wondering whether there is a particular number of Regular Savers below which it isn’t really worth it.

Mark_d

As you say, the money you make from regular savers is very small, despite the interest rate looking attractive. For this reason I'd say the optimum number of regular savers is zero.  Just use a high interest instant access saver instead.

refluxer

There is no optimum number, so it all depends on how much spare cash you have coming in each month (or how much cash you have already saved that you're willing to move around) and how many new banks or building societies you'd be willing to join to grab the higher regular saver rates. Gains can be small to modest, but they all add up.

Personally, I consider opening online Regular Saver accounts with banks or building societies that I'm already a member of (that pay a higher rate of interest than I'm getting in my best easy access accounts) to be a no-brainer and I consider accounts elsewhere on a case-by-case basis, weighing up any hassles involved and whether or not the provider has other competitive accounts I'm likely to take advantage of.

Hinchandrossi

I don't think there is an optimal number, everybody has different circumstances. ISA allowance may need filling up or you may not need tax free funds.

I have around 15 or 16, some here have over 50.

Some RS accounts allow withdrawals so in effect are easy access accounts, so its always worth looking around for them.

And if you can afford it why not put some money away at 6 or 7% (if these are still available to new customers), get the best rates you can, if thats a RS the more the merrier.

apt

I tend to run 8-10. More and I would be over £1000 tax free limit.

apt

Mark_d said:

As you say, the money you make from regular savers is very small, despite the interest rate looking attractive. For this reason I'd say the optimum number of regular savers is zero.  Just use a high interest instant access saver instead.

What interest rate do you think you are going to get on an instant access saver in 6 months' time? Maybe 3.5% compared to 7%, 8% and 10% some people will be getting on regular savers.

friolento

apt said:

I tend to run 8-10. More and I would be over £1000 tax free limit.

Hopefully people wouldn't feel limited by the £1,000 PSA and have 0% instead of 80% above the PSA

Bigwheels1111

17 Reg savers for me, The money goes around and around.

Just over 3k a month.

slinger2

It's a personal thing. I was looking at Principality this afternoon and wondering why I didn't have a particular RS. Answer: £50 a month for year. Total interest works out at about £20. Extra interest over what I can get with less hassle about £2. To me it's just not worth the bother. I'd rather stick a few hundred quid in a notice account or a fixed rate product and forget about it.

friolento

Mark_d said:

As you say, the money you make from regular savers is very small, despite the interest rate looking attractive. For this reason I'd say the optimum number of regular savers is zero.  Just use a high interest instant access saver instead.

This would make sense if there were any easy access savers with a higher interest rate than the best Regular Savers. I currently have 31 Regular Savers with a higher interest rate than the best currently available easy access account. Not all of those Regular Savers are still available - you need to be on the ball and open them as they appear. Because of the better RS interest rates, there's a big demand for these accounts and many are sold out quite quickly.

For completeness, I should mention that you can find Regular Savers with interest rates below those of the best easy access accounts. These are, naturally, of no interest to the experienced MSE Forumite, and they rarely if ever figure on the MSE Forum list for the best Regular Savers maintained by the amazing @Special_Saver2

friolento

The optimum number would be as many as you are willing to find and manage, as long as they have a better interest rate / return than you can get in other accounts.