Being nosey... How many Regular Saver accounts do you have?

Snapdragon

Wasn't aware of this thread until tonight, as I don't venture onto the main board very often, but saw it referenced in Bridlington1's brilliant thread which I check daily  so had to have a read through. Some interesting figures. 

I've dabbled with RSs for a few years. Am never going to be on the leader board, as I only open ones I expect to fully fund. I try to spread them, so something maturing every month, but that doesn't always work, as definitely have to open decent rated ones regardless of whether I have 5 new ones that month. Last year there were so many options in Oct/Nov, I've loads about to mature!

I currently have 30 active, with total value just over £90k. Disappointed to find the replacements for some that were available last year have become Branch only versions, (West Brom last month/ Market Harborough next month) but I'll repeat everything available online/via post, if the rate on this year's version is still competitive.

Middle_of_the_Road

subjecttocontract said:

Middle_of_the_Road said:

Middle_of_the_Road said:

Bobblehat said:

I wonder if there are any closet RS enthusiasts browsing this forum that are too shy to contribute?

Unfortunately, I'm not expert enough with the forum's search facility to know how to search for them, but I'd never add in their past admissions anyway without their say so, as they can easily do it themselves here if they wished to play 

Have 19 at this time. Not worked out monthly funding total or amount deposited.  I could have applied for more, but trying not to open accounts with any more providers, as feel it could become too burdensome. 
The whole savings mindset I find, can become an obsession, and distract one from enjoying other important aspects of life that I feel are pleasureable.

Make that 20......just applied for the Monmouthshire 6% 😂

Are you aware that there are a couple of Monmouth 7% reg savers available ?

Did see mention of them, but never looked into them that closely as my only easy access funds were in a CMC ISA at a good rate at the time.

LZC

Exodi said:

Usually 1 or 2.

While I'm a big advocate of Regular Savers, there are several things that hinder my ability to go crazy like other forumites.

Firstly is opportunity cost. If I have surplus cash and I don't need the money in the short-medium term, I'd likely be better off investing the money instead. My current (tax-free) XIRR on investments is around double the rate you can get from Regular Savers.

It's also worth remembering that all Regular Savers are taxable. A higher rate tax payer for example, could exceed their PSA with no previous savings, by just contributing the maximum to ~4 RS accounts over a year. This would effectively turn a 7% First Direct Regular Saver into 4.2%. While still not bad, it's certainly not as exciting as it might first appear.

I appreciate that everyone's situation is different, but it's hard to imagine people with double digit numbers of Regular Saver accounts are not paying tax on the interest, unless they're just making minimum contributions (to which you'd wonder what the point was). For some, if they have some of their ISA allowance available to them, they might be better off putting the money in there than another Regular Saver.

Of course there's also those that have more money than they know what to do with. Those that have maxed out theirs and their partners ISA allowances in April, don't want (or it is impractical, e.g. due to stage in life) to invest and accept they will pay tax on interest.

What I think you are missing is that you should not be investing all your cash. The advice is generally to keep around 6 months’ income as cash/cash equivalent for emergencies. So even those maxing their stocks and shares ISAs should hold some cash. 

Regular Savers generally offer the best return for that cash, outperforming the average return on Premium Bonds even after tax. To maximise your return on the 6 months of income held as cash would likely require a double digit number of Regular Savers (whilst avoiding those like First Direct which don’t allow penalty free access) spread out across the year. 

clairec666

LZC said:

Exodi said:

Usually 1 or 2.

While I'm a big advocate of Regular Savers, there are several things that hinder my ability to go crazy like other forumites.

Firstly is opportunity cost. If I have surplus cash and I don't need the money in the short-medium term, I'd likely be better off investing the money instead. My current (tax-free) XIRR on investments is around double the rate you can get from Regular Savers.

It's also worth remembering that all Regular Savers are taxable. A higher rate tax payer for example, could exceed their PSA with no previous savings, by just contributing the maximum to ~4 RS accounts over a year. This would effectively turn a 7% First Direct Regular Saver into 4.2%. While still not bad, it's certainly not as exciting as it might first appear.

I appreciate that everyone's situation is different, but it's hard to imagine people with double digit numbers of Regular Saver accounts are not paying tax on the interest, unless they're just making minimum contributions (to which you'd wonder what the point was). For some, if they have some of their ISA allowance available to them, they might be better off putting the money in there than another Regular Saver.

Of course there's also those that have more money than they know what to do with. Those that have maxed out theirs and their partners ISA allowances in April, don't want (or it is impractical, e.g. due to stage in life) to invest and accept they will pay tax on interest.

What I think you are missing is that you should not be investing all your cash. The advice is generally to keep around 6 months’ income as cash/cash equivalent for emergencies. So even those maxing their stocks and shares ISAs should hold some cash. 

Regular Savers generally offer the best return for that cash, outperforming the average return on Premium Bonds even after tax. To maximise your return on the 6 months of income held as cash would likely require a double digit number of Regular Savers (whilst avoiding those like First Direct which don’t allow penalty free access) spread out across the year. 

There are plenty of regular savers which allow unlimited withdrawals or closure without penalty, so are a useful home for your emergency funds.

Bridlington1

s71hj said:

Bobblehat said:

Bridlington1 said:

Bobblehat said:

s71hj said:

Bobblehat said:

OwnedByACat said:

              

Alternatively, in Terminator two when Arnie asks (referring to the Police turning up), "How many"? Young John Connor answers "All of them, I think"!

My days are punctuated with Red Dwarf and Father Ted analogies 

"You're right there, Ted"!

"Is there anything to be said for having another RS, Father"?

Well now, are you sure you wouldn't like a nice hot cup of tea instead?

"Drink, Drink"! Now where's my bottle of Jameson's.

The money was only resting in my regular saver accounts 

You went to Las Vegas, whilst that poor child was supposed to be in Lourdes!

Ch1ll1Phlakes

Bobblehat said:

I wonder if there are any closet RS enthusiasts browsing this forum that are too shy to contribute?

Unfortunately, I'm not expert enough with the forum's search facility to know how to search for them, but I'd never add in their past admissions anyway without their say so, as they can easily do it themselves here if they wished to play 

Sorry, I'm late to the party. Currently sitting on 16 in total (from 12 providers), though some end in the next month.

Had been trying to keep the number of providers I use on the low side, but as I've got into investing and used my ISA allowance in a S&S ISA, regular savers have become my main savings method. This time last year it was 9 from 6 providers so definitely is starting to become a bit of a hobby.

Bobblehat

Some more additions ...

n15h

ThePirates said:

@n15h I'd go Principality before Provincial
Higher rate and when you choose maturity options that allow you to have duplicate accounts you are quids in!
I'm on 4 Principally accounts now even thought the 'rules' suggest you can only have 1.

@ThePirates I wasn't aware that RSs have the maturity option that allows the funds to be transferred to another RS account with the same provider e.g., Principality - unless I've misread that. Or do you mean something else?

kermchem

n15h said:

ThePirates said:

@n15h I'd go Principality before Provincial
Higher rate and when you choose maturity options that allow you to have duplicate accounts you are quids in!
I'm on 4 Principally accounts now even thought the 'rules' suggest you can only have 1.

@ThePirates I wasn't aware that RSs have the maturity option that allows the funds to be transferred to another RS account with the same provider e.g., Principality - unless I've misread that. Or do you mean something else?

When Principality BS fixed term accounts end you can just let then evolve into an easy access account by doing nothing, but the maturity instructions usually offer you several options. These do differ between account. The 6 month RS, where if you have been adding £200 per month you will have £1200 plus interest, you can open a new 6 month RS with £200 and have the remainder sent to your nominated account / current account / other options. You keep the same account name and number for the "new" account, so it also simplifies making further deposits.

Zekko

I've recently applied for the Progressive Building Society 7% offering, so I now have 7 Regular Savers.

I'm currently cycling my cash emergency fund through them from an Easy Access account. I also look to make use of the S&S ISA annual allowance whilst maintaining a steady value of cash holdings through the year.