The Top Regular Savers Discussion Thread

Bobblehat

CricketLady said:

Bobblehat said:

snow62 said:

Bobblehat said:

Have you taken into account that the RS maturing near the end of a month may be used to.... a) fund other RS's a day or so later in the next month, which could/should pay more than any EA holding account ... b) or fund a new RS at the end of the next month on from when the maturing RS matured (e.g. RS matures at end of July funds 1st payment of new RS at end of August and 2nd at beginning of September)? .... c) a combination of a) and b)?

With 19 RS's, hopefully spread out over a decent period, I'm surprised that you are not already doing a) or b) or c)?
I'll admit that differences in timing will only create small advantages over figures quoted by the Banks/BS's expected interest figures, but those small advantages add up. After all, if you thought differently, why not leave the funds in an EA/FR/Notice Account rather than administer 19 RS's?

As for crystal ball gazing .... I work on the general principle that rising RS rates occur with rising EA rates, and falling EA rates occur when RS rates are falling! Once I've filled my ISA allowance for the year, I'm looking at which RS/EA/FR/Notice accounts have the highest interest rate and work my way down the list.

Ah, but my point is that funding initially at the end of the month instead of e.g. half-way through means that I would immediately be losing half a month at the higher rate.  RS matures in a year's time in the middle of the month, so that can be used to fund new RS half a month earlier which will earn more interest than initially funding on the 1st of a month.  Your b) just means you've missed out on a month of higher interest if you wait until the end of August; that's my take on it, anyway!

My 19 RSs aren't spread out evenly.  RS rates rose sharply around September 3 (?) years ago, which meant opening several in a short period.  That has followed on so I have 10 maturing Sept/Oct/Nov.  I've been using flexible cash ISA to fund and will replenish that as the RSs mature as well as opening new ones if the rates are worth it.

It's all swings and roundabouts.  What works for one person is not necessarily the same as what works for someone else.

Firstly, let me say I totally agree with your last paragraph  Each to their own method!

All I'm trying to show is that there are small advantages in doing the "fund at end of month strategy", and of course you might miss out if the RS is pulled before you bag it, as surreysaver points out. There's always another RS to open though if you miss one!

Have a look at this ... based on the MonBS RS and typical EA feeder account paying 4.5% .....



Provided I've done the calcs correctly, and ignoring that dates might fall at a weekend, irrespective of starting on the 1st or the 15th, you gain £6+ by funding on the 29th. Is it worth it ... that's up to you! If I were asked would you rather have £318.72 or £325.05, I know what I would answer!

You would gain a little more if you were allowed to fund a 13th payment (01/08), which some RS's allow. As I have mentioned in previous post, the 13th payment (not shown above) only provides a small gain to add on to the extra £6+  mentioned above, so is not a deal breaker for me, but I'll take it if offered.

What is fairly obvious is that there is a reasonably good gain over leaving the £6000 in the EA account.

For the curious, I did a second version of the chart altering it to move the payment dates on to the next working day if it fell at a weekend or Bank Holiday .... it lowered the advantage of starting on the 29th by 17p ... I won't bore everyone any further by attaching that chart!

If I've made any mistakes I'm sure there will be someone who will tell me 

Please marry me x

Ha! Ha! Mrs Bobblehat might not be pleased ... then again ..... she might 

Please take into account that it's a quickly drawn up table (hacked from one I had done earlier for Skipton BRT RS) containing a limit number of scenarios and some factors omitted (as other posters here have mentioned earlier). It was done more for the comparison of funding early or late than to produce absolute interest figures. I don't expect the rates to stay constant and therefore don't expect to get any of the four figures filled in green! 

Sorry if that deflates its usefulness to you!

Dizzycap

For anyone trying to open the Monmouth 6% RS, their website & app are down for maintenance as there's online login issues. However, accounts seem to be crediting ok when I checked early this morning.

friolento

MBS again

My FP deposit of yesterday is now showing in the app (not online), with a credit date of yesterday.

The app is working fine for me (on iOS), including the 2FA code at the first attempt. I just click on pink shaded bar under the "please enter......" message, and I can then click on "From Messages" to have the code automatically entered. Click "Submit", and I am in. 

It appears that the app would allow me to apply for yet another Issue 8. I won't be doing this as it would be taking the proverbial and I am happy with two 

ForumUser7

Does MBS have form for closing duplicates?

snow62

Bobblehat said:

Have a look at this ... based on the MonBS RS and typical EA feeder account paying 4.5% .....

I would argue, as indicated, by masonic, that you're not comparing like with like - first column goes from 1/8/25 to 1/8/26, last column from 29/8/25 to 29/8/26. I would look at 1/8/25 to 29/8/26 on both, including interest earned in EA feeder account after and before respectively of funding RS.  May try to work this out for my own satisfaction, but won't post anything further unless anyone's interested - I expect they'll come out similar but still think not funding earlier is counter-intuitive!

friolento

ForumUser7 said:

Does MBS have form for closing duplicates?

Don't think so. But remember: past performance is no guarantee for future performance 

mhoc

Monmouthshire
- on the app I can only get the OTP by email - if I send for a code via the mobile number it never arrives.

 I opened a new regular saver on the app- this took barely a minute and and then a letter by email with the details and it showed immediately when I logged out and back in. 
I can now fund it and set up the standing order.

I  have come to the conclusion that the saver that I opened on Friday via the website has failed somewhere along the line so it was never going to happen. 

Bobblehat

snow62 said:

Bobblehat said:

Have a look at this ... based on the MonBS RS and typical EA feeder account paying 4.5% .....

I would argue, as indicated, by masonic, that you're not comparing like with like - first column goes from 1/8/25 to 1/8/26, last column from 29/8/25 to 29/8/26. I would look at 1/8/25 to 29/8/26 on both, including interest earned in EA feeder account after and before respectively of funding RS.  May try to work this out for my own satisfaction, but won't post anything further unless anyone's interested - I expect they'll come out similar but still think not funding earlier is counter-intuitive!

I think you've missed the point! I am deliberately not comparing like with like. Starting the late(!) funding column at 1/8 would mean it was not late funding! The whole point of the late funding comparison is to enable £500 (in this example) to be deposited twice within a few days, i.e. 29th Aug and the 1st Sept, as opposed to a regular monthly deposit, be it on the 1st, 15th or any other day of the month! And surely, like with like comparisons would have to be done for a whole exact year in each case?

I could have chosen 1st payment on 31st July and 2nd payment on 1st Aug for the late funding column, but a) knew my account was very unlikely to be open in time for that scenario... and b) would be better in my particular circumstances to cough up the £1000 needed as late as possible in August as I could! I understand that the EA figures I've given are in isolation to any other funds there might be in the EA account and also assumes that there isn't £6000 or even £1000 sat waiting in the EA between 1st Aug and 29th Aug gaining only 4.5% .... in my case there isn't.

I think I've given as much information as needed for anyone who thinks my table doesn't reflect a particular scenario that they are interested in, to construct their own table. Thanks to everyone who has shown ....err .... interest!

ChewyyBacca

friolento said:

MBS again

My FP deposit of yesterday is now showing in the app (not online), with a credit date of yesterday.

The app is working fine for me (on iOS), including the 2FA code at the first attempt. I just click on pink shaded bar under the "please enter......" message, and I can then click on "From Messages" to have the code automatically entered. Click "Submit", and I am in. 

It appears that the app would allow me to apply for yet another Issue 8. I won't be doing this as it would be taking the proverbial and I am happy with two 

Did you fund both the Iss8?

Bridlington1

mhoc said:

Monmouthshire
- on the app I can only get the OTP by email - if I send for a code via the mobile number it never arrives.

 I opened a new regular saver on the app- this took barely a minute and and then a letter by email with the details and it showed immediately when I logged out and back in. 
I can now fund it and set up the standing order.

I  have come to the conclusion that the saver that I opened on Friday via the website has failed somewhere along the line so it was never going to happen. 

In my experience accounts opened online are processed manually and you should get a letter with the account number by post. Once you've got the account number you'd need to add it manually to online banking so the one opened by the website probably won't've failed but is simply still being processed.