Which Regular Savings Account is better

diy1950

I have the option of a 1yr regular saver with a fixed rate of 4.85% on  maximum monthly deposits of £250 or a 6 month  regular saver with a fixed rate of 7.5% on  maximum monthly deposits of £200. Which is the best option? Obviously there will be more  money in the 1yr version. 

Mark_d

You could use both?  To some extent it depends on how much spare cash you have each month and when  you'll need to access the proceeds from your regular savings

jaypers

If you’re limited to £250 a month, open both, putting £200 pcm into the 6 monthly one and £50 into the yearly one and then increase the yearly one to £250 pcm from month 7. That would give you the overall highest return.

grumpy_codger

diy1950 said:

I have the option of a 1yr regular saver with a fixed rate of 4.85% on  maximum monthly deposits of £250 or a 6 month  regular saver with a fixed rate of 7.5% on  maximum monthly deposits of £200. Which is the best option? Obviously there will be more  money in the 1yr version. 

Define 'best'.
With the first you make about £79 interest over 12 months from £3000 saved gradually.
With the second - about £26, but over 6 months, not 12, and from £1200, not £3000.

Kim_13

Take the 6 month one - I consider a sub 5% RS poor in the current market. For example you could have a 1 year fix at West Brom paying 6% on £250 per month (you just need to put £1 into their Easy Access account first if not living in their postcode area.)

Bobblehat

diy1950 said:

I have the option of a 1yr regular saver with a fixed rate of 4.85% on  maximum monthly deposits of £250 or a 6 month  regular saver with a fixed rate of 7.5% on  maximum monthly deposits of £200. Which is the best option? Obviously there will be more  money in the 1yr version. 

Do you not have the option of a fixed rate of 5.5% on up to £250pm? No current account required for this with Halifax.

Or if you are willing to open a current account or to open a variable RS, there are even high rates than 5.5% available. just wondering why you are limiting yourself to just two options?

PRAISETHESUN

7.5% > 4.85%... If you have to choose, then the 7.5% one is a no brainer, and you just move onto whichever savings is paying the best rate in 6 months time. Otherwise just have both...

You don't name which bank/BS you're considering, but there are plenty of RS accounts out there, as regularly discussed in this thread: https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

Bridlington1

PRAISETHESUN said:

7.5% > 4.85%... If you have to choose, then the 7.5% one is a no brainer, and you just move onto whichever savings is paying the best rate in 6 months time. Otherwise just have both...

You don't name which bank/BS you're considering, but there are plenty of RS accounts out there, as regularly discussed in this thread: https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

I'd assume it was Principality BS given the account details they reference, I'd agree though out of the two I'd go with the 7.5% one.