Optimum number of Regular Savings accounts

Middle_of_the_Road

apt said:

slinger2 said:

I've got money "stashed away" in a 3 year fixed rate product, expires August 2026 paying 6.0%. OK it's tied up but it a lot lot less hassle.

That's a good product to have because interest rates are on a downward path, but presumably you can't add to it so need somewhere else to put your surplus income and emergency funds. As I have to move money around to fund half a dozen current accounts moving money into regular savers at the same time is hardly onerous. Takes 5 to 10 minutes a month.

Funding multiple regular saving accounts only takes minutes once they're all set up.
If using apps with biometric login, regular payments can be done in seconds. It would be really tedious doing lots payments in online banking though.

nottsphil

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.

Please disregard this advice OP because it completely fails to explain that each pound you put in is only there for an average of 6 1/2 months (presuming equal payments).
Contributing £x pm to his so-called high interest instant access saver will yield less than the same £x pm going into a regular saver, because typically the RS APR is higher, sometimes substantially so. Many regular savers also offer from kind of penalty free instant access.

TheWoodler

For me my strategy is a mix which I shake up a little each year, rebalancing my savings portfolio. I’m currently placing more emphasis on RSs and less on fixed bonds, in contrast to the last couple of years.

The way I see it is that small sums do heavy lifting. Joining several small sums together now means 1/10th of my funds is now consigned to RSs at 5.5% or over, across about 20 accounts.

I’m about to take a career break so that’s it for now - it all helps to tide me over without straining me during the break. 

orange-juice

You're probably better off investing to grow your wealth. But for emergency funds where cash is important, then high-interest regular savers (that are relatively easy to access) are a no brainer (I think I have about 15).

friolento

apt said:

friolento said:

apt said:

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

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

True, but there are fixed rate ISAs where you are allowed to keep paying in up to the £20,000 annual  limit. I would get better interest in that once the regular saver interest begins to be taxable.

slinger2 said:

I've got money "stashed away" in a 3 year fixed rate product, expires August 2026 paying 6.0%. OK it's tied up but it a lot lot less hassle.

It doesn't have to be 'either' 'or' for everybody. There are people who use up their annual ISA allowances, have fixed term savings, easy access savings, regular savings, notice accounts, SIPPs and/or or other pensions, GIAs, Premium Bonds, and may be also some more exotic stuff such as gold and crypto - perhaps all of these at the same time. For some people, the right choice might be to just have one of these at certain times though having all your eggs in the same basket is not usually the smartest approach. The only definite thing is that there is no one-size-fits-all.

Eco_Miser

ShinyStarlight1 said:

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.

To answer your second question, the answer is zero.

Assuming the Regular Savers have a higher interest rate than other available accounts (and they usually do) they will pay you more than putting the same amount of money in a different account for the same period.

Remember that the rates are (usually) so good that the issuers restrict how much you can put in (and therefore how much they are paying out, compared with their other offerings).

To answer your first question: as many as it takes to absorb your surplus funds, working your way from highest rate downwards. N.B. This is after funding your pension (and S&S ISA if desired) and emergency and lumpy-spending funds, although easy access RSs can form part of the latter two.

Nebulous2

You need to realise this is a game, a sport, a challenge for many people. It isn't just about the money, it's about the excitement of rounding up a few more elusive pounds. Many people who can't be bothered simply don't get the hobby element involved and class it as 'work.' 

I've 8. Mostly biased to the second half of the year. I had intended to space the redemptions evenly but became too enthusiastic at opening them.  Some months it can be a challenge funding them. My income isn't sufficient to pay them all and to pay my bills.

I'd say ideally I'd have 12 with one maturing every month. That would even out my cashflow and they could feed themselves. 

Jami74

ShinyStarlight1 said:

... 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.

On this forum 'small' means different things to different people. When I first got my act together a few years ago, I was absolutely thrilled to bits with the few pence interest I earned each month. And people laughed when I told them of the efforts I went to. It did become my hobby and some may have said that I was obsessive.

I'd love to have a regular saver maturing each month but I have just bought a house (thank-you switches, interest, loyalty payments and rewards for all the help). Money is sat in digital savers and Santander at the moment because I need my interest monthly to cover the 0% credit cards minimum payments. 

saajan_12

ShinyStarlight1 said:

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.

Its not really about too few being not worth it - there's no real work to get started. If you open 1 account, you'll have 1 lot of hassle to set up logins, open the account, set up the standing order, get the money back at the end, etc. Open 2 and its about double that. 3 and its triple etc.

When I say hassle its not a huge task, but not nothing. It'll always be an individual choice whether that hassle is worth the return - perhaps its worth doing and even fun for x accounts but any more becomes a chore. But there certainly isn't a minimum number to be worth it. 

ShinyStarlight1

aroominyork said:

ShinyStarlight1 said:

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.

Are you wishing yet that you hadn't asked?

Haha!! No, I’m genuinely interested 😊