The Top Regular Savers Discussion Thread

subjecttocontract

There hasn't been as much excitment/posts as I expected regarding the Santander 8% reg saver. Normally this site goes into overdrive when an outstanding offer becomes available......is everyone on vacation or suffering from the heat ?

JamesRobinson48

https://forums.moneysavingexpert.com/discussion/comment/82047383#Comment_82047383

I pay additional rate tax. But for yield and liquidity purposes, I still find it worthwhile (on an after tax basis) to hold RSAs with several savings institutions that I happen to engage with anyway for other purposes. Examples include (Club) Lloyds, Nationwide and Skipton BS. Despite spreading the bulk of my funds around tax-efficient investment and savings products such as S&S ISAs, low-coupon gilts and PBs. As you would know, the majority of RS offerings can be closed online without penalty, often on a same day or 24 hours basis, so typically they're a suitable home for ready cash.

snookerloopy96

https://forums.moneysavingexpert.com/discussion/comment/82046697#Comment_82046697

I use Chase and Nationwide, relatively evenly split, 12-15 RS each plus current accounts.

As of yet never had a problem, Nationwide does sometimes require you to use their card machine which can be annoying but its for my protection at the end of the day.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82047383#Comment_82047383

it doesn’t really matter what tax band you are in - you will always be left with more money after tax as you aren’t getting taxed 100%. Unless, perhaps if the extra interest would put you into the next tax band but this seems to be unlikely in your case as you are already HR.

Whether the extra interest you will make is worth the admin required for RSs, only you can tell. It might not be for you. It is for me, also an HR tax payer.

s71hj

I am thinking of closing my Skipton members regular saver a couple of months early as need the money for next batch of regular saver payments. I also have a standard regular saver albeit with only £1 in. Am I right I won't be able to open a new member one unless I close the standard one?

clivep

https://forums.moneysavingexpert.com/discussion/comment/82047458#Comment_82047458

Skipton

You are correct. Only one or other now allowed for new applications.

edinburgher

https://forums.moneysavingexpert.com/discussion/comment/82047450#Comment_82047450

I'm not sure I understand, probably missing something as I'm melting in the sunshine. In terms of tax and optimising our average savings rate, I'm simply comparing whether RS interest minus any tax beats my cash ISA. If not, I can't see the point of using RS beyond £500/interest a year?

clairec666

https://forums.moneysavingexpert.com/discussion/comment/82047497#Comment_82047497

You're right, I think friolento didn't realise you had the option of putting more into your ISA. If you can, great - compare the RS interest after tax which what you'd get in the ISA, and pick the best option. Otherwise what friolento says makes sense - it's better to get 6% interest and pay tax on it than get 0% interest.

Dadto3Boys

https://forums.moneysavingexpert.com/discussion/comment/82047497#Comment_82047497

I agree - after that £500 of interest you are effectively reducing the rate so that 6% becomes just 3.6%. So would be better (simpler) to out into an ISA assuming it pays more than 3.6% for this example.

edinburgher

Absolutely, thanks to both of you!