To use regular savers or not

masonic

You can get an average rate of return on a lump sum that is a little over halfway between the interest rates of two accounts you feed the money between. Each account still pays the interest rate it is supposed to pay. Just like you can have half your cash sat in a current account paying nothing and the other half in a fix at 5%, and you'll get an average rate of 2.5% on your cash holdings. The fix still pays 5%. When deciding whether "to use regular savers or not", it is unwise to consider the interest rate you'll receive on money not in the account, unless you have to forfeit a good fixed rate to make money available to feed into the RS.

TheWoodler

I think a really good way of looking at RS is to think that each individual £ is earning the most it possibly can at any given time - and those gains are maximised by drip-feeding. 

Another way of looking at RS is as part of a diversified savings portfolio - a mixture of EA, fixed bonds and RS. 

Some RS have high maximum pay-in, so they can be an excellent half-way house in that you transfer say £300-500 at a time. They may have very favourable rates, but not necessarily the absolutely top rates - which might be those with a £50 monthly commitment and don’t tend to knock around for long. So RS might actually be the most diverse part of your savings portfolio! 

You can cycle the matured funds through an EA, knowing you can service another RS with the same institution for a year, if one at a favourable rate is available, or another somewhere else if you prefer - ie the funds committed to those RS then become self-sustaining. 

This can then free you up in either direction: if you’re not able to commit ‘new money’ from income, you’re still able to capitalise on your existing gains at the best rate available on a RS, and if you *are* able to commit funds from income to a second RS, then you can open another and grow the RS component of your savings portfolio over time. 

mon3ysav3r

poolboy said:

  
Only downside is self assessment and tallying up interest payments on 30+ accounts.

Yes, this is going to be some work I am not looking forward to doing

HedgehogRulez

I’ve heard that regular savers are a scam as they only pay out half the promised interest on your closing balance!! 😗

clairec666

HedgehogRulez said:

I’ve heard that regular savers are a scam as they only pay out half the promised interest on your closing balance!! 😗

 

ThePirates

HedgehogRulez said:

I’ve heard that regular savers are a scam as they only pay out half the promised interest on your closing balance!! 😗

Then don't put any money into them! 
I've got 20, some people on this forum have a lot more than that.
We're all REALLY HAPPY with the returns! 
😘

BikingBud

Comparative Excels:

Simple  Saver Calculation Table     EA Acct   Period EA Balance Interest Initial Investment £3,000.00 4.50% Aug 25 1 £3,000.00 £11.25 Sep 25 2 £3,011.25 £11.29 Oct 25 3 £3,022.54 £11.33 Nov 25 4 £3,033.88 £11.38 Dec 25 5 £3,045.25 £11.42 Jan 26 6 £3,056.67 £11.46 Feb 26 7 £3,068.14 £11.51 Mar 26 8 £3,079.64 £11.55 Apr 26 9 £3,091.19 £11.59 May 26 10 £3,102.78 £11.64 Jun 26 11 £3,114.42 £11.68 Jul 26 12 £3,126.10 £11.72     EA Interest £137.82     EA Acct Total £3,137.82

	Reg Saver Calculation Table
		EA Acct		Reg Saver
	Period	EA Balance	Interest	RS Balance	Interest	Total Int	Total Cash
Initial Investment		£3,000.00	4.50%	£0.00	7.50%		£3,000.00
Aug 25	1	£2,750.00	£10.31	£250.00	£1.56	£11.88	£3,011.88
Sep 25	2	£2,500.00	£9.38	£500.00	£3.13	£12.50	£3,024.38
Oct 25	3	£2,250.00	£8.44	£750.00	£4.69	£13.13	£3,037.50
Nov 25	4	£2,000.00	£7.50	£1,000.00	£6.25	£13.75	£3,051.25
Dec 25	5	£1,750.00	£6.56	£1,250.00	£7.81	£14.38	£3,065.63
Jan 26	6	£1,500.00	£5.63	£1,500.00	£9.38	£15.00	£3,080.63
Feb 26	7	£1,250.00	£4.69	£1,750.00	£10.94	£15.63	£3,096.25
Mar 26	8	£1,000.00	£3.75	£2,000.00	£12.50	£16.25	£3,112.50
Apr 26	9	£750.00	£2.81	£2,250.00	£14.06	£16.88	£3,129.38
May 26	10	£500.00	£1.88	£2,500.00	£15.63	£17.50	£3,146.88
Jun 26	11	£250.00	£0.94	£2,750.00	£17.19	£18.13	£3,165.00
Jul 26	12	£0.00	£0.00	£3,000.00	£18.75	£18.75	£3,183.75
		EA Interest	£61.88	RS Interest	£121.88	£183.75

Eco_Miser

HedgehogRulez said:

I’ve heard that regular savers are a scam as they only pay out half the promised interest on your closing balance!! 😗

But they pay out SIX TIMES  the promised interest on your opening balance!! 

trickydicky14

HedgehogRulez said:

I’ve heard that regular savers are a scam as they only pay out half the promised interest on your closing balance!! 😗

This has to be a wind up or you can't understand a word that has been written on these posts.

sausage_time

Hi @topyam - I don't think you have had a chance to reply to any of the comments or feedback.

Do you have all you need, or do you have any more questions?   Some of the replies are clearly getting a bit silly (and misleading!), so if you are good I'll suggest this thread be closed!