Opening a RS

Middle_of_the_Road

friolento said:

dcs34 said:

Another consideration is that (generally) it is usually smaller or more regionalised Building Societies who offer better rates. Therefore holding Regular Savers with them allows one to maintain an active membership with them for the purposes of being eligible for exclusive/loyalty savings products with preferential rates.

I think we need to distinguish between Regular Savers (upper case RS) and regular savers (lower case rs). 

The former is a time-limited and balance-limited account, usually 12 months but there are some 6, 24, and - very rarely - perpetual variations, all with low monthly max deposit limits. Whilst the lower-case regular savers are just common accounts, usually easy access and without time limit. 

Your lower case accounts are just savings accounts.
The confusion occurs when Regular Saving accounts are wrongly referred to in the plural.

clairec666

saajan_12 said:

IMO its not so much about the absolute rate as much as how the tax adjusted rate compares to what youre getting on normal savings accounts. So assuming you have already exhausted what youd like to put into pensions, S&S investments, LISAs etc and then I'd compare how much extra I'm getting from a regular saver to an easy saver, tax adjusted if applicable. 

*   A 1% difference on a regular saver allowing £250 a month will result in an extra £16.25 over a year.
*   If you're paying higher rate tax then its a £9.75 difference if you've used up the allowance and have no room in ISAs. 
*   If its a RS where you already have a log in, documents sorted etc then its worth the effort for £10. If you need to create a whole new log in, provide proof, etc, then maybe more eg £20-25 before I'll bother. 

Going back to the original question about your minimum threshold is for regular saver rates, my main consideration is whether it would be better off in an ISA, and comparing the regular saver rate minus tax to the ISA rate.

I'm a basic rate taxpayer, unlikely to max out my ISA this year, but have a fair chunk in regular savers, so will be taxed on the interest. If another account pops up, it'll have to offer at least 5.25% in order to beat the 4.2% I'm getting in my best ISA. So my absolute minimum is 5.5%. But currently I'm not able to fully fund all my regular savers, so am not interested in anything under 6.5%.

For higher rate taxpayers then the benefit of the ISA will be even greater, unless you've maxed it out already.

trickydicky14

It’s not until you read threads like this that you become aware of how much information and calculations we weigh up on a regular bases when we are running 10, 20, 30+ regular savers.

Eco_Miser

friolento said:

kimwp said:

Definitely. Needing a current account with several direct debits puts a regular saver much lower on the list for me - too much faff to make sure that the account was funded for the DDS. (I'll do it for a decent switch). But a current account that needs a set amount popping in and out each month I'm happy to do for 6%.

I am not aware of any pre-req current account which requires DDs.

The Club Lloyds current account appears to need DDs, but they are just to qualify for interest on the account, and considering the current rate, one might decide not to bother with the few pence of interest on the CA, and just go for the two RSs the CA qualifies you for.

friolento

Eco_Miser said:

friolento said:

kimwp said:

Definitely. Needing a current account with several direct debits puts a regular saver much lower on the list for me - too much faff to make sure that the account was funded for the DDS. (I'll do it for a decent switch). But a current account that needs a set amount popping in and out each month I'm happy to do for 6%.

I am not aware of any pre-req current account which requires DDs.

The Club Lloyds current account appears to need DDs, but they are just to qualify for interest on the account, and considering the current rate, one might decide not to bother with the few pence of interest on the CA, and just go for the two RSs the CA qualifies you for.

I have never needed any DD for the Club Lloyds RS accounts, which I have constantly held since they first became available. I also don’t keep a balance in the CL current account, only ever use it when  I apply for a new Club RS, and goes without saying, I am not getting charged the monthly fee as it’s easy enough to avoid it.

topyam

Was gonna close an account with a bank I have dur to v poor customer service and me being v unhappy with them

Now considering opening a RS with them, so I can get some £ from them 😂

Yep petty I know 

Eco_Miser

friolento said:

Eco_Miser said:

friolento said:

kimwp said:

Definitely. Needing a current account with several direct debits puts a regular saver much lower on the list for me - too much faff to make sure that the account was funded for the DDS. (I'll do it for a decent switch). But a current account that needs a set amount popping in and out each month I'm happy to do for 6%.

I am not aware of any pre-req current account which requires DDs.

The Club Lloyds current account appears to need DDs, but they are just to qualify for interest on the account, and considering the current rate, one might decide not to bother with the few pence of interest on the CA, and just go for the two RSs the CA qualifies you for.

I have never needed any DD for the Club Lloyds RS accounts, which I have constantly held since they first became available. I also don’t keep a balance in the CL current account, only ever use it when  I apply for a new Club RS, and goes without saying, I am not getting charged the monthly fee as it’s easy enough to avoid it.

Like I said, if you're not interested in getting interest from the account you don't need the DDs.