Natwest Digital Regular Saver - interest rate going down

Archerychick

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

artyboy

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Yep, no savings tax for me, so my £5k is staying put. Actually surprised that the 6% rate lasted as long as it did!

surreysaver

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Unless you're paying 40% tax (which you won't be if your savings allowance is £1k), then surely you're better off keeping it at 5.5%?

clairec666

surreysaver said:

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Unless you're paying 40% tax (which you won't be if you're savings allowance is £1k), then surely you're better off keeping it at 5.5%?

My own calculations suggest that paying tax on interest at 5.5% is equivalent to receiving 4.4% interest in an ISA. So basically, keep it in the regular saver unless you have an ISA with a higher rate than 4.4%.

surreysaver

clairec666 said:

surreysaver said:

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Unless you're paying 40% tax (which you won't be if you're savings allowance is £1k), then surely you're better off keeping it at 5.5%?

My own calculations suggest that paying tax on interest at 5.5% is equivalent to receiving 4.4% interest in an ISA. So basically, keep it in the regular saver unless you have an ISA with a higher rate than 4.4%.

If the regular saver is fully funded, the interest is only 5.37% (4.29% after tax), as it's not compounding. Although it's paid monthly, so you'll be syphoning it off and putting it somewhere (perhaps the ISA!)

clairec666

surreysaver said:

clairec666 said:

surreysaver said:

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Unless you're paying 40% tax (which you won't be if you're savings allowance is £1k), then surely you're better off keeping it at 5.5%?

My own calculations suggest that paying tax on interest at 5.5% is equivalent to receiving 4.4% interest in an ISA. So basically, keep it in the regular saver unless you have an ISA with a higher rate than 4.4%.

If the regular saver is fully funded, the interest is only 5.37% (4.29% after tax), as it's not compounding. Although it's paid monthly, so you'll be syphoning it off and putting it somewhere (perhaps the ISA!)

Yeah, mine is fully funded so the compounding gets a bit complicated, I've over-simplified my calculations here.

Bob2000

I'm currently in the process of gradually adding to the account. Well, RBS one actually.
lve had it for just over a year and with putting in the max £150 and round ups lm just past the half way point of £5k

Is it still worth maintaining it, to the max monthly?

surreysaver

Bob2000 said:

I'm currently in the process of gradually adding to the account. Well, RBS one actually.
lve had it for just over a year and with putting in the max £150 and round ups lm just past the half way point of £5k

Is it still worth maintaining it, to the max monthly?

If you've fully funded everything with a higher interest rate, then yes

Bob2000

surreysaver said:

Bob2000 said:

I'm currently in the process of gradually adding to the account. Well, RBS one actually.
lve had it for just over a year and with putting in the max £150 and round ups lm just past the half way point of £5k

Is it still worth maintaining it, to the max monthly?

If you've fully funded everything with a higher interest rate, then yes

Well I've  only got so many Banks/Building Societies  on the go they are more than enough  for me to keep on top of so this regular  saver is one of the better ones l have.

Can l ask you if the cahoot sunny day saver would be a good one to open.
I'm due a payout of a bond end of the month. 

Cheers for the reply.

Archerychick

surreysaver said:

Archerychick said:

clairec666 said:

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

It also depends if you’re likely to pay tax on the interest whether the funds are better inside an ISA. In my case I think I’ll exceed the £1k based on all my other RS accounts so at the end of May, I’ll move my funds into Monument ISA 

Unless you're paying 40% tax (which you won't be if your savings allowance is £1k), then surely you're better off keeping it at 5.5%?

The break point is about 4.5% ish in ISA is better and I have 4.76% EA in a flexible ISA