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

nigelholl2

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

luci

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

masonic

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Ch1ll1Phlakes

luci said:

Kim_13 said:

They still pay the highest rates obtainable rates on the cash for the period that it is with them. Sure, a 6.5% Easy Access would return more over the year than a 6.5% Regular Saver, but there are none of the former available. Easy Access rates tend to be cut more quickly than Regular Savers, and require all of the money to be available upfront. £1,800 placed into a 3.25% Easy Access now would return roughly £58.50 in a year, while the 6.5% Regular Saver returns the same with the average balance over the year being only £900. 

Regular Savers with maturities spread over the year are therefore the best way to make sure that an Emergency Fund is available, without losing out to inflation since RS rates are more likely to beat it.

Thanks for that. I didn't think about the average balance being lower. I was just thinking about the full amount being deposited at the outset.

I think you are getting it and what @Kim_13 says is key. While some people say you get half the interest, in reality you have (roughly) half the balance.

For example, a regular saver with £150 per month at 6.5% (as @Kim_13 used above) has a final value of £1800 over twelve months. The expect interest is 1800/2 *0.065 = 900 *0.065 = £58.50.

Note I used 1800/2 i.e. the average balance not half the interest which would give you the same number (1800 * 0.065/2 = 1800 * 0.0325 = £58.50) but is flawed in it's maths and understanding.

luci

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

topyam

Oluci said:

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

Your health is your wealth..

Take care

luci

topyam said:

Oluci said:

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

Your health is your wealth..

Take care

Thank you. The admin involved in servicing multiple accounts is more than I am now able to cope with.

Bobblehat

luci said:

topyam said:

Oluci said:

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

Your health is your wealth..

Take care

Thank you. The admin involved in servicing multiple accounts is more than I am now able to cope with.

Thanks for sharing. A little while back I was asked why I included members with zero RS holdings. It is for inclusivity, as they have taken the time to explain why they hold none. Each one has an equally valid point of view to those that hold many RS's and adds to the richness of the discussion in this thread. 

If I may, I'll add you to the table as holding zero. Your contribution to the thread is refreshingly different 

clairec666

luci said:

topyam said:

Oluci said:

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

Your health is your wealth..

Take care

Thank you. The admin involved in servicing multiple accounts is more than I am now able to cope with.

It can be rather a challenge if you're juggling multiple accounts. A sensible choice for a lot of people is to just have a regular saver with the bank they have their current account with, there are some nice "easy" ones like Nationwide and Cooperative where you don't have to deposit every month and you can make withdrawals if necessary. And Natwest, where you don't even have to worry about it maturing! To name but a few.

fuzzzzy

luci said:

masonic said:

luci said:

nigelholl2 said:

luci said:

I am getting it (slowly), but I haven't explained myself very well. It was my cackhanded way of saying that I understood you only get interest on the amount that is in the account at any one time and not for the whole year.

Bobblehat kindly posted a clear explanation which has been very helpful.

I too struggled to get the attraction, but when I started looking at it again this year the lightbulb suddenly came on.
Critics do not take into account the interest that you are making on the feeder account.
When I started my journey down this rabbit hole, I modelled a feeder account & associated RS's
On my current collection, annually
1. if all the monies  was sat in an IA acc, would generate £1319
2. my RS's will generate £1217, in addition the IA acc gives £784 while the money is waiting to be transferred, so total of £2002

A £52% increase or £683 running the same money through the set of RS's
Hopefully that may assist

Many thanks for your detailed explanation which was very helpful. I'm glad someone understands where I was coming from, even if I may not have explained myself very well. I hadn't taken account of interest earned on a feeder account, which obviously makes a difference. Your reply is appreciated.

The ideal situation is where the feeder account is another regular saver. Consider the situation where you open one regular saver per month, each allowing a deposit of up to £250. By the end of the first year, you could have all your savings in high paying regular savings accounts. Each month, one matures and you use that balance to deposit into all the others and open a new one. Then all of your money will be earning regular savings rates. Those of us with a double digit number of regular savers are achieving something similar to this.

Many thanks for your detailed explanation. That makes perfect sense.

Until the last few years, I would have been all over this and sitting on the league table with multiple RS accounts, as I would have learned the benefits from here. I used to open, close, switch multiple bank accounts to take advantage of any benefits. However, ill health has forced me to make my finances much simpler.

Most of our money is in S&S ISAs via an IFA, so I don't need to worry about them or do anything. The rest is in much slimmed down cash accounts. I've had to accept that I am no longer able, nor do I need, to chase every last 0.01% of interest. That’s against my nature as I enjoyed the sport.

Our IFA told us last year to start spending our money. I suddenly realised that I had been so focussed on saving every penny, that I hadn’t thought what I was actually saving for. I took him at his word and have managed to spend £100,000 in the past year.

A very interesting post. I myself had to simplify all my accounts about 10 years ago after a sudden adverse health event. My username refers to my brain not my hair. But I did recover and just slowly made it all more complicated again!

This year I had resolved not to open any more regular savers, but I got sucked back in by a 7% regular saver with up to £1k monthly funding allowed, and a flurry of others followed. As DRS1 said in his post, it is an addiction. I know logically I should be investing more of my money but I keep putting off thinking about investing, which I know little about, and getting side-tracked by moving around cash savings.

I am glad you are managing to spend, that is something I need to work on more.

I am also realising I need to simplify my finances because I want to make use of the gifting from excess income exemption for IHT. I was just thinking about this today before coming online. I move so much money around different accounts so often that it would be very difficult to prove what my actual expenditure is.