Timing of when to open a Regular Saver

nicko33

What day of the month is it best to open a Regular Saver?

I'm thinking it might be best to open them at the end of a month, then get subsequent payments in as early as possible.

e.g.
payment 1 - 31st March 2008
payment 2 - 1st April
payment 3 - 1st May
...
payment 12 - 1st Feb 2009
account matures 30th March 2009

if the T&C say "the intrerest rate will be fixed for a period of 1 year from the date the account is opened"
then this method should be like making a double payment at the start of month 1 and missing month 12, giving you an extra 11 months interest on 1 months payment.

Or is there something I'm missing?

jimbow25

Yes this is possible though it would depend on the conditions of the account. Some accounts insist that monthly payments must always be received on the same day of each month.

With the Lloyds one many people opened theirs on (e.g.) 22nd March and then had monthly standing orders from the first of each month after that. Lloyds staff in fact told me I couldn't change the date of transfer once I'd set up the s/o though this was untrue.

Bear in mind you'll probably have to alter your standing order instruction between the first 2 payments, to make this work, so 2 days in a row will probably be a bit too close together.

Mikeyorks

nicko33 wrote: »

and missing month 12

That a lot of T&Cs require you make at least one, but not more than one, payment in a calendar month. So you can't get away with the above.

I've found it easiest (as the anniversary date tends to be up to 12.75 months .. not a clean 12 months) to pay 13 times in the first year (Halifax). Then stabilise it to 12 in the 2nd year - by re-setting my SOs to the day after the anniversary date. Thereafter it just re-cycles the same money and runs itself .... other than my taking the interest out of the pot each year.

nicko33

Mikeyorks wrote: »

That a lot of T&Cs require you make at least one, but not more than one, payment in a calendar month. So you can't get away with the above.

I said it would "be like" missing month 12.
You still make a payment in 12 consecutive calendar months

Mikeyorks

nicko33 wrote: »

I said it would "be like" missing month 12.
You still make a payment in 12 consecutive calendar months

No ..... because, in your example, you make no payment in March 2009? Which, with some accounts would cause you to be relegated to a lower interest rate for the whole year.

nicko33

I expect it will depend on the T&Cs on what is supposed to happen in March 2009.
A payment in March 2009 would be a 13th payment.

Mikeyorks

I'm afraid you have to work it out. If you get a Month 13 situation you have to handle it. Your option exacerbates it!