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Nationwide regular saver 6.5%
Comments
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I (incorrectly) made the assumption that there was a "can't have had a Flex Regular Saver in the last 12 months" condition, when in reality it reads "You can only be named on one Flex Regular Saver product at any time (of any Issue)."
Having said that, 7 days interest on £2600 probably beats the additional interest gained by starting earlier on a smaller amount.
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Yes, this year my account matured on 30th September, so I opened the new one 1st October and will get about 10 quid less this time. Next year, if I remember, I may wait about 3 weeks before re-opening
Eco Miser
Saving money for well over half a century0 -
Are you measuring the total return for both scenarios over the same date range and including the interest you could earn in your feeder account? Because you shouldn't see a difference of £10 when it's just £200 difference and a rate difference of around 2%.
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Yes, that should make it about £4 difference for what you can't get for the "end of month" payment of £200 being in the regular saver for a year at 2% more. and the loss for closing it early is about 41p per day. So if you did close it, say, 3 days early (how quickly do they process a closure and allow you to open a new one?), you'd come out ahead.
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My understanding is that when you close early, closure takes 1 working day, and then you have a second working day to wait before you can open another. So 3 days is probably enough to get back to end of month, given 1st October 2027 is a Friday. I might be tempted to close on the Monday in case of delays, and then you should be good for three years (so you can amortise that ~£2 interest cost if you are confident of the account being around for that long).
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No, just comparing £94 with £84. That £200 might be sitting in the feeder account all year, or it might be in a different RS, or a 1 year fix, or my S&S ISA, I don't know now, and I probably won't know this time next year, since money is fungible.
Eco Miser
Saving money for well over half a century0 -
If you don't compare like with like then you will reach a misleading conclusion.
For example, if you didn't open the regular saver at all and just left £2,600 in a feeder paying 4.5%, you'd end up with £117 interest. Comparing this to the £94 you got from the maturing RS, you might conclude that using the regular saver results in less interest. But you would not be comparing like with like. Just as you are not comparing like with like when "just comparing the £94 with the £84".
Throwing your hands up and saying it will be impossible to tell the financial outcome of not being able to renew at the end of September is an option. But for most, they would simply look at the marginal rate of interest they could achieve on an extra £200 now and project forward.
It turns out there are some 1 year fixed rate accounts that offer low minimums, so the opportunity exists to get 5.1% on the money as a worst case option. Interest earned on £200 would be £10.20 and this is guaranteed. I therefore think you have underestimated the difference between a RS with 13th payment started on 30th September, and one without started on 1st October. It should be around £13, reduced to £3 using the spare £200 to generate some more interest. If you have capacity in another RS paying more than 5.1% (i.e. you hold more RS than you could otherwise have filled during October), then it will be even less than this.
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Mine was £94.53 too, matured on the same day😀 £94.15 last year, £115.02 in 2024 (that issue paid 8%). Opening funding dates: 21 sept 2023, 22 sept 2024, 24 Sept 2025. I'm happy with that and £400 is already in the issue 7😃 This one will mature on 25th, another weekend delay, but I'm sure I will have EA paying the top rate at that time so the impact will be minimal.
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I was able to open a 2nd RS a few days before the first matured. New 25/09, old matured 27/09.
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Although some savers will be using the Nationwide RS to qualify for the £100 annual payment Nationwide has been offering for running a current account plus savings or mortgage account.
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