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Regular saver , what's the point?
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I do all the bank switching offers as and when I'm eligible, and also do a good number of the investment switching ones, but I'm reluctant to "swoop" on Quidco/TCB offers for products I wouldn't take up anyway as I've had a number of disappointments in the past. I'm also reluctant to overdo account opening cashback offers repeatedly as I see having a long term relationship with a banking group more lucrative than taking the p and then having the relationship ended.
Where a spend is required for cashback, then obviously there is a risk of loss where the cashback is conditional on a separate third party agreement.
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Currently funding 25 RS a month, I have another 2 fully funded that I just skim interest off each month takes up maybe 30 minutes, which is usually checking / confirming funds are in the correct place around about 26-28th of month for transfers at start of month. I got the recent Lloyds £250 transfer incentive which took more time / faffing than any regular saver I’ve setup. I had to downgrade my existing account before opening a new one, I had to setup an additional direct debit on account I was transferring as only had two but Lloyds required 3. I got the recent £100 Amazon voucher for opening a Santander account, again more hassle and record keeping, initially my voucher didn’t come through and I had to follow up with support but did eventually get it. The Lloyds switch was the first I’ve been eligible for in a while, whilst not a consideration for me, many people don’t like or want the credit search opening a new current account sticks on you as this may influence mortgage applications etc….Typically it takes longer and requires a few extra hoops to jump through to get a current account switching offer but the rewards usually make it worthwhile I have 18 current accounts, some for Regular savers others waiting for the next available switch offer. Cashback is fine when it tracks but is the most likely to cause issue.
All have their place but RS generally grows savings quicker.
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you could always stay put with your main account and also switch one or more secondary accounts .
Current account switching is totally independent of Regular Savings accounts.
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As mentioned above, you are not 'really' getting 7.5% - you are getting the difference between 7.5% and what you could get by putting it in an ordinary savings account.
I may not have phrased the above in the best way but hopefully you understand what I mean
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One of the biggest myths on this forum
You are definitely getting the headline rate.
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I don't think that myth has actually come up in this thread. @mta999 was referring to the gain being the difference between the RS rate and the best EA rate, assuming you are weighing up whether or not to move cash from one to the other each month.
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I always think of it as around half the headline rate overall. I E first months money 7.5% then next one 11/12 of 7.5% and so on till the last payment of 1/12 of the rate.
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We could complicate things further by taking inflation into account too!
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That would be incorrect for a 6 month regular saver. You wouldn't earn a nominal 7.5% return over 12 months on any of the money unless you could re-deposit into another RS at 7.5% in 6 months time. But you'll earn interest at a rate of 7.5% on anything you do deposit.
@Pickledonionlover someone came along and proved me wrong!
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I am talking about how I view 12 month one.
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