Regular saver , what's the point?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81925190#Comment_81925190

Thats how AER works and the same can be said for the 3-4% if you only deposit £200 a month. There are some products that suit those with lump sums to put somewhere and there are products that suit people are actively saving. If you have both a lump sum and want to continue to save you are potentially better off with a mix and match solution for the different parts of your life.

DjangoUnchained

i see on this forum that many people have many of these accounts running at the same time ( saw someone had 60 of them) now that must be worthwhile.

Zippy29

I've currently got 19k in regular savers with an average return of 5.8%. I spend thirty minutes per month updating a spreadsheet to keep track of them. It might take me 15 minutes to open a new regular saver. Definitely worth it for me and there's folk on this forum with a lot more invested than I have.

clairec666

Just repeating other people's points, but…

Depends what you consider "hassle"

and

Would you rather get 7.5% interest on your money, or 0%?

The Principality account always raises a few questions, because the combination of the 6-month term and the £200 deposit limit means that interest is only £25-30. Compared to First Direct for example which is £300 for 12 months, and your interest is somewhere in the region of £136, so may feel more worth your effort.

Everyone has different priorities in terms of effort levels, ease of access, etc.

lr1277

I suppose there is the emotional side as well as the logical side.

It is logical to save your money in an account that pays 7.5% rather than 0.5%.

The emotional side I think is (some) people like looking at their account(s) every month and seeing the balance build up. Also you are saving what you can in a separate pot. These savings are not getting mixed up with your emergency savings or whatever other reason you have for saving. Finally at the end of the term, you have a pot of money to do with as you wish.

I know when I had a regular saver, I enjoyed getting the passbook updated and seeing the balance grow month on month.

borderline

thanks all for you input. I just found this Principality account a bit silly , just for £25… I think there are better options out there ,

I'm just wondering if having multiple saving accounts when you make more than £1000 in interest, how does HMRC works it out?, every bank informs them this person made all this money this period ?

subjecttocontract

To answer your thread title.....there is only a point to regular savers if you want to join in.

It's clearly worth it to those that want it. The choice is not really 7.5% or 0.5% if you have a lump sum. You can get a bit more than 4% on deposit instead of drip feeding a far smaller reg saver......the choice is entirely yours.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81925605#Comment_81925605

Yes, each bank must report savings interest to HMRC - it should be by about June after the end of the tax year, but last year (I think), they were significantly delayed. This then gets used to update your tax code, if you have taxable income (not state pension).

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81925605#Comment_81925605

What are the better options you're thinking of, in terms of the return on £200/month?

surreysaver

https://forums.moneysavingexpert.com/discussion/6659925/regular-saver-what-039-s-the-point

How much money has writing this post, then reading the responses, made you?

How long has it taken to write it and read the responses?