The Old Regular Savers Discussion Thread 28/12/24-29/1/26

Bridlington1

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

thefrank

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

In my world Principality 7.5% has the same appeal of TSB or Hsbc 5%. No more than that because Maths is not an opinion

jaypers

I’m starting to think that posts on here now saying that RS accounts paying less interest than a traditional account are just a wind up! 

Bridlington1

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

In my world Principality 7.5% has the same appeal of TSB or Hsbc 5%. No more than that because Maths is not an opinion

Because it's not a question of having a 7.5% RS or a 5.25% RS with a longer term, you could have both accounts (along with several others) fully funding the 7.5% one and then redistributing it to other regular savers when it matures.

masonic

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

If you have a limited amount of money, such that you are unable to fund both a 6.25% Lloyds RS and a 7.5% Principality RS at the same time, so you put £200 in each for the first 6 months and then £400 in Lloyds (£200 per month fed from 5% Cahoot) and £200 in Principality for the second 6 months, then you will end up about the same total interest of ~£194. So nothing gained vs just funding the Lloyds RS from income. So if you need to prioritise RS, the 6 month account will be fairly low down the list, certainly after anything annual paying 6% and higher.

Baileys_Babe

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

In my world Principality 7.5% has the same appeal of TSB or Hsbc 5%. No more than that because Maths is not an opinion

I my case I have already filled the regular savers paying more interest than Principality as well as 2 x Cahoot, Edge saver etc being maxed out, so I'm now filling Principality 6 month regular savers.

clairec666

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

In my world Principality 7.5% has the same appeal of TSB or Hsbc 5%. No more than that because Maths is not an opinion

To make a direct comparison between Principality and Lloyds, you'd have to put £200 in every month for 6 months. For months 7-12 you would recycle the same £1200 through Principality, while making no further deposits into Lloyds.

By my calculations, that will gain you £52.50 at Principality, and £59.58 for Lloyds. So a win for Lloyds.

But bear in mind that from month 7 you'll have some excess from your Principality account that can be put into an easy access account to drip-feed back in. If you're earning 3.5% on that, you'll gain £8.75, which nudges Principality back into the lead.

So it's a win for Principality by £1.67 - up to you whether you consider it worth the slight extra effort. But the margin would be much greater for HSBC or TSB at 5%.

thefrank

masonic said:

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

If you have a limited amount of money, such that you are unable to fund both a 6.25% Lloyds RS and a 7.5% Principality RS at the same time, so you put £200 in each for the first 6 months and then £400 in Lloyds (£200 per month fed from 5% Cahoot) and £200 in Principality for the second 6 months, then you will end up about the same total interest of ~£194. So nothing gained vs just funding the Lloyds RS from income. So if you need to prioritise RS, the 6 month account will be fairly low down the list, certainly after anything annual paying 6% and higher.

You got my point. Thanks for a clever and well documented answer.

thefrank

clairec666 said:

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

In my world Principality 7.5% has the same appeal of TSB or Hsbc 5%. No more than that because Maths is not an opinion

To make a direct comparison between Principality and Lloyds, you'd have to put £200 in every month for 6 months. For months 7-12 you would recycle the same £1200 through Principality, while making no further deposits into Lloyds.

By my calculations, that will gain you £52.50 at Principality, and £59.58 for Lloyds. So a win for Lloyds.

But bear in mind that from month 7 you'll have some excess from your Principality account that can be put into an easy access account to drip-feed back in. If you're earning 3.5% on that, you'll gain £8.75, which nudges Principality back into the lead.

So it's a win for Principality by £1.67 - up to you whether you consider it worth the slight extra effort. But the margin would be much greater for HSBC or TSB at 5%.

The problem is that Lloyds is a fixed interests account. There will be no guarantee that you'll find another Principality 7.5% after 6 months and no guarantee the 3.5% interest on the access account. So the comparison is not possible

Ps. My apologies if my English is sometimes a bit slippery, but am a grumpy old Italian although been living in Uk since 2008

clairec666

masonic said:

francoghezzi said:

Bridlington1 said:

francoghezzi said:

CricketLady said:

Hello Francoghezzi,

No need to apologise and I'm sure lots more savvy members will have better answers but in my case, I don't pay tax on my hard earned cash as I'm taking a break from work so rather than have any of my cash sitting at 5% Cahoot I'd much rather have as many accounts paying 6% upwards no matter what the time frame.  If I could have another 6.25% regular saver with Lloyds I would, I'd have 5 if they'd let me, but they only let you have one.  And I have all of the others (I currently feed 52 with about £10k per month, a mix of new cash as my husband is a higher earner and recycled funds) but again, others on here will probably have more than 52!

Have a lovely day xx

But 1200 kept at 5% on Cahoot will give you more interests in a year than 2 Principality rs ... almost £10 more (it's £60 interest with Cahoot against £52 from Principality). Even deposited in a 5.25% Rs those money would earn more interests in 12 months time

But £1.2k kept at 5% in Cahoot for 6 months would earn less than £1.2k kept in Cahoot and drip-fed into 7.5% Principality RSs. 

That's for sure. But the big question remains. Why should I go for a 6 month Rs when any other 12 month Rs above 5.25% would give me more investing the same amount of money? (Unless, of course, I already own 100 fully funded Rs ...)

If you have a limited amount of money, such that you are unable to fund both a 6.25% Lloyds RS and a 7.5% Principality RS at the same time, so you put £200 in each for the first 6 months and then £400 in Lloyds (£200 per month fed from 5% Cahoot) and £200 in Principality for the second 6 months, then you will end up about the same total interest of ~£194. So nothing gained vs just funding the Lloyds RS from income. So if you need to prioritise RS, the 6 month account will be fairly low down the list, certainly after anything annual paying 6% and higher.

Just wondering how you managed to get £194?

By my calculations, £400 per month into Lloyds for 12 months will result in £162.50 interest - assuming this is from income each month, and no drip-feeding.
If however you distribute your income between Principality and Lloyds for 6 months (i.e. £200 each), then from month 7 onwards use Cahoot to drip-feed, you'll end up with £167.38 interest.

I agree with your idea, but when I crunch the numbers it comes out in favour of Principality.