Regular saver , what's the point?

masonic

https://forums.moneysavingexpert.com/discussion/comment/81926467#Comment_81926467

I'm keen to learn more about this 12 month 7.5% RS 😉

The Principality 7.5% 6 month RS is the subject RS introduced by the OP.

Altior

A very simplistic way to calculate a ballpark figure in your head for a 6 month RS. Half the amount and half an hypothetical annual interest applied to that:

1200/6 = 600. 600 * 0.075 = 45. 45/2 = 24.5.

It's close enough for a 2 second calculation/judgement.

masonic

If you're planning to contribute the maximum each month, even the simplistic calculation is unnecessary as banks and BS must do this for you in the product information.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81926561#Comment_81926561

Of course, but not everyone is interested in digging into the detail.

Very broadly, a six month rs gives a quarter of the amount of interest as an annual one would for the same subscription. As it's half the amount in half the time.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/81926384#Comment_81926384

You misunderstood the post. If your money is currently in an easy access account earning, say 4%, and you cannot be bothered to move it to an account earning, say 7.5%, you would be missing out on 3.5%

Pickledonionlover

This introductory bit here is simply wrong - no matter the context:

As mentioned above, you are not 'really' getting 7.5%.

Anyway I'll leave this thread alone now as I'm sure the OP and some of the doubting contributers now know the merits of either standalone or multiple high paying RS accounts by now.

As an aside if people do want to work out the projected interest it's probably just as quick and more accurate to utilise Martin's RS calculator rather than half this and half again.

https://www.moneysavingexpert.com/savings/regular-savings-calculator/

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81926540#Comment_81926540

Not very close. From Principality 6m RSs this financial year I received 28.43+28.27+28.41+27.17+31.82+26.61+32.55+28.25 = 231.51

Altior

https://forums.moneysavingexpert.com/discussion/comment/81927103#Comment_81927103

That's why I called it a ballpark figure. It just gives someone an easy feel for the likely level of interest over the term. For the majority of people, three or four quid over half a year is not material (for some it is, but then they won't need a ballpark figure).

friolento

https://forums.moneysavingexpert.com/discussion/comment/81926375#Comment_81926375

Bottom line is that you get more money with a higher rate.

Please use the MSE Regular Savings calculator to quickly and easily work out the difference with your interest rates and amounts

allegro120

https://forums.moneysavingexpert.com/discussion/comment/81927140#Comment_81927140

I understand, there are many different attitudes and approaches to saving money.

When opening RS accounts I never calculate the sum I will receive at the end of the term. I just go by AER and if it is bigger than I currently get from EA accounts I go for it. I don't really care about the length of term or the allowance. They come in different shapes, from £50 to £2000 pm and from 6 months to eternity - I'm happy with all of them as long as they deliver a better AER.