The Top Regular Savers Discussion Thread

s71hj

https://forums.moneysavingexpert.com/discussion/comment/82047876#Comment_82047876

Anyone with a more mathematical brain than me capable of working out the difference in interest between a 22nd June 22nd July etc payment schedule and a 22nd June 1st August etc payment schedule.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82048084#Comment_82048084

You're effectively replacing 9 and a halfish days at the maximum balance with the same number of days at the minimum balance, so for a Santander 8% account funded at £200 per month, that's £2200 * 9.5/365 * 0.08 = £4.50.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82048098#Comment_82048098

£4.50 before any tax that might be due 😉

clairec666

https://forums.moneysavingexpert.com/discussion/comment/82048084#Comment_82048084

I agree with masonic's rough calculation. Although that assumes that the money would be earning no interest for those 9 days, whereas you're likely to have it in an easy access account earning a lower rate of interest, so your loss will be less than £4.50.

Decide for yourself whether it's worth the hassle of doing some extra RS admin on another day of the month in return for £4.50 interest. Having to fund it via your Santander current account makes it a bit more of a bother as you can't just set up a standing order direct to the RS. For me, it's not too bad because it aligns nicely with my First Direct and Zopa accounts, so I'll probably fund all of them on the 24th (only losing a couple of days interest) and fund everything else on the 1st.

Another thing to consider is whether you have the funds available on the 22nd (i.e. sitting in a lower-paying easy access account). If you do, then the best strategy is to fund it on the 22nd each month. If like me your salary lands on the last working day of the month then you might not be able to fund until the 1st of the month anyway.