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Investment or Savings
Comments
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Certainly would not be worth it for me, I retired long ago from that degree of 'manual labour' 😅
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Yes, getting a large lump sum into Regular Savers is a slow and possibly tedious process. The best paying (recently 8% from Santander, Lloyds, Halifax, BoS, Tembo)) tend to be available for only short periods, so need to be grabbed when available, and ideally there should be accounts maturing each month to aid recycling. However after the first year, when the maturing accounts are used to fund the ongoing RSs the effective interest rate is closer to the headline rate. Saving into RSs from income does get the headline rate.
Eco Miser
Saving money for well over half a century1 -
Looking at the table at
it would appear that current rates for those with a 'substantial' (e.g. > £35k?) amount of money in RS are in the range 5.5% to 6.5% which are, of course, not to be sneezed at. In each case, they have 20 or more accounts. There are also a number of people on that table who cannot recycle the current value of their RS over the course of a year (i.e., current value > 12*per month) without increasing the number of accounts held.
I think it will be the case that in a rising rate environment, the average rate will gradually increase and vice versa in a falling rate environment towards the current headline rate - it is only where rates are constant that the weighted interest rate will eventually reach the headline rate.
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a couple can put £16K instantly in to santander edge saver at 6%.( some have put in more). there was more 8% savers which have been pulled but with interest rates expected to rise they should be back soon
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because my capital is in stable savings accounts I can comfortably borrow £50000 at 1%(stoozing/knowing I can easily pay it back) and place that into savings accounts of 5%+ giving an extra FREE 4% in interest
IF ALL my cash was in a unstable stockmarket I wouldnt dare
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That's the year 1 calculation (starting from no existing regular savers). In year 2, assuming the regular savers are spread across the year, the vast majority of the money will be earning at the higher rates all year.
The thing with the MSE snapshot is that it misses many accounts that were on sale briefly and pulled. Some only last a couple of months, while some are so popular they get pulled after a few days.
Right now I don't have a penny of taxable savings earning less than 6% (excluding a few accounts with £1 in them used for continuous BS membership). At times I make use of 5% EA accounts for excess funds.
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You're right it is the Year 1 calculation for someone with a £50k lump sum to place in regular savers. In that particular case, I guess they would have to keep an eye out for new accounts and start staggering the end dates as much as they can
In the league table I referenced above, for those with largish amounts, the weighted rates achieved are currently in the 5.5% to 6.5% range. For someone with smaller amounts, I'd agree that the achievable rates are higher.
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Unless I'm misreading their documentation, the Santander Edge Saver currently appears to be limited to £4k per person and requires an edge current account which costs £36 per year (giving a net rate after fees of 5.1%) - cash back on household bills might offset the fee.
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like i said we have £16k earning 6% NO fees incidentaly i borrowed £10K from santander at Zero %
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There is a workaround for the fees on an Edge Current account, so one sole and one joint account can currently be possessed without incurring a monthly fee. Two sole/joint accounts could previously be opened, but that ship has now sailed.
One can still access more Edge Savers via the Edge Explorer current account, but after fees that is not an attractive proposition if you don't get enough from the current account perks.
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