Regular Savings Account from Scarborough BS

H2SO4

I've been doing some research, and it seems that this account, paying 6%AER, seemingly until the 'Investment Limit' of £15k is reached, with monthly payment of £10-250, beats Derbyshire's offering in everything EXCEPT maximum payments. Is there any catch?

Kazza242

H2SO4 wrote:

I've been doing some research, and it seems that this account, paying 6%AER, seemingly until the 'Investment Limit' of £15k is reached, with monthly payment of £10-250, beats Derbyshire's offering in everything EXCEPT maximum payments. Is there any catch?

Yes, there is. The Derbyshire have paid a consistent and competitive rate on their regular saver (of more than 1% above BOE base rate) for at least the last 18 months. Scarborough, on the other hand, tend to tempt savers in by launching high rate accounts, only to quickly cut the rate only months later.

Remember, with regular savers it takes a while to get the money in there. Therefore, if the interest rate on your account is suddenly cut, it is not as straightforward to move your money elsewhere, as it would be with a normal easy access savings account. In light of this, I prefer to stick with an account that has paid a steady rate of interest over a sustained period of time.

deemy2004

Yes it looks like a very good account !

Would take 5 years to fill up the account @ £250 per month !

Now looking at scarboroughs other rates, they are a mixed bag some good and some not so good, so does looklike a good long-term account to commit to.

Also if 5 years on the rate is still good, you would need to change the final payments to £10 to stop from reaching £15k and hence being transferred to a crap interest rate account.

ReportInvestor

I agree with Kazz242's choice of the Derbyshire for exactly the same reasons

Those who hold a Scarborough account know that their annual "booklet" for interest rates on discontinued accounts has become quite a substantial tome.

I suppose you could say that it's more difficult to launch new types of regular saver - but I wouldn't put it past them (e.g. one without an upper savings limit or one with a three year life).