Regular savings account & fixed rate ISA - advice please!

[Deleted User]

Hi,

I'm considering opening this account:

http://www.hsbc.co.uk/1/2/personal/savings/regular-saver

- 8% AER/gross fixed for 12 months on deposits of £25 – £250 saved each month by standing order from your HSBC Bank current account

Now bearing in mind I've got a HSBC account so qualify etc. and I plan to save £200 a month, can anyone find a better savings account / AER?

Also planning on opening this ISA:

http://www.bradford-bingley.co.uk/savings/great-ISA-rate.asp

- 1 Year Fixed Rate ISA at 6.25 AER

Can anyone find a better AER? I don't have 9k either for the Lloyds ISA and I'd prefer a fixed rate one.

Any suggestions or thoughts welcome

Toastie

Deleted_User wrote: »

Hi,

I'm considering opening this account:

http://www.hsbc.co.uk/1/2/personal/savings/regular-saver

- 8% AER/gross fixed for 12 months on deposits of £25 – £250 saved each month by standing order from your HSBC Bank current account

Now bearing in mind I've got a HSBC account so qualify etc. and I plan to save £200 a month, can anyone find a better savings account / AER?

Also planning on opening this ISA:

http://www.bradford-bingley.co.uk/savings/great-ISA-rate.asp

- 1 Year Fixed Rate ISA at 6.25 AER

Can anyone find a better AER? I don't have 9k either for the Lloyds ISA and I'd prefer a fixed rate one.

Any suggestions or thoughts welcome

8% is good remember that it is daily interest, so only the starting amount of money in the account will actually have 8% interest, so you would roughtly get £100 interest.

The B&B isa looks good, although you can't withdraw so unless you know 100% you wont need to access it then there wont be a problem you also won't be able to add to it (as far as i understand)

[Deleted User]

Toastie wrote: »

8% is good remember that it is daily interest, so only the starting amount of money in the account will actually have 8% interest, so you would roughtly get £100 interest.

Yeah if I understand this correctly AER is the interest rate to illustrates what the gross rate would be if interest were paid and compounded each year so I'd get 8% to start with then a tiny bit less the next day and so on...? The savings calculator, http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc suggests "After saving £200 a month for 1 year and 0 months, you will have £2,482.41 in savings." This is correct isn't it?

Toastie wrote: »

The B&B isa looks good, although you can't withdraw so unless you know 100% you wont need to access it then there wont be a problem you also won't be able to add to it (as far as i understand)

Yeah the limit on withdrawals is fine.

Milarky

Nationwide (though I hate to recommend them) do a good regular saving account paying BOE+1% until 2010. What commends this account at present (since the Lloyds Monthly Saver has dropped) is the ability to make withdrawals and keep the account going (albeit the rate drops in the month you make a withdrawal) If flexibility is important to you this a good account to be saving into.

[Deleted User]

Milarky wrote: »

Nationwide (though I hate to recommend them) do a good regular saving account paying BOE+1% until 2010. What commends this account at present (since the Lloyds Monthly Saver has dropped) is the ability to make withdrawals and keep the account going (albeit the rate drops in the month you make a withdrawal) If flexibility is important to you this a good account to be saving into.

I'm assuming you mean http://www.nationwide.co.uk/savings/regular_savings/interest_rates.htm
£200+ 6.25% AER?

Not really my cup of tea when I can get 8% AER with HSBC even though Nationwide will match the BOE rate by .25%.

Not bothered at all about flexibility...

Toastie

Deleted_User wrote: »

Yeah if I understand this correctly AER is the interest rate to illustrates what the gross rate would be if interest were paid and compounded each year so I'd get 8% to start with then a tiny bit less the next day and so on...? The savings calculator, http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc suggests "After saving £200 a month for 1 year and 0 months, you will have £2,482.41 in savings." This is correct isn't it?

Yes it is, where as a lump sum would be 70quid more, i guess with it being a regular saver with a high interest rate and maximum interest limit you can get a little decieved.

I presume you have a HSBC account? If not Quidco offer £20 cash back for a basic account which you need to transfer the funds.

fablad75

I didn't want to transfer my wages to HSBC so I just opened a regular saver with Halifax at 7%. Less hassle.

[Deleted User]

Toastie wrote: »

Yes it is, where as a lump sum would be 70quid more, i guess with it being a regular saver with a high interest rate and maximum interest limit you can get a little decieved.

I presume you have a HSBC account? If not Quidco offer £20 cash back for a basic account which you need to transfer the funds.

Yeah I've had an account for 6 years and even though Martin would say I could get better basic accounts elsewhere I think he should put a bit more weight to having an account for a long-ish period of time and what this can do to your credit score... Not that I'm having a go, just not read this on here before even though it seems to be true (guess I could be wrong though!)

Good point above, never thought about the fact that the interest rate would appear to be higher e.g. 8% instead of 6.5% because you're not getting 8% on the total amount due to drip feeding it in e.g. £200pcm for 36months in a regular saver = £7,934.03 whereas a straight £7200 in a savings account = £8,672.76...

Doesn't really matter though as I don't have £7200 free! :rotfl:

[Deleted User]

Bump aaaa

Froglet

Hi David.I am presently on my third regular saver and at 8% gross ,even the net at 6.45% is better than most Isas.I put the full £250 in for that reason. You do need to set it up via a branch but after that you can see it adding up via their website.I cannot fault HSBC for the way they handle my bamking,never had a problem.

i am about to fix with Saga,via Birmingham Midshires,at 6.41% (not an ISA).That is because i am about to be a non tax payer this next tax year,plus am over 50.I have not had any problems with Bradford and Bingley so again would recommend them and the way they run their website.

[Deleted User]

Froglet wrote: »

Hi David.I am presently on my third regular saver and at 8% gross ,even the net at 6.45% is better than most Isas..

Wouldn't you have to consider that the interest gained is taxable though so even though the AER is slightly higher than most ISAs this isn't a fair comparison?

Froglet wrote: »

I put the full £250 in for that reason. You do need to set it up via a branch but after that you can see it adding up via their website.I cannot fault HSBC for the way they handle my bamking,never had a problem.

i am about to fix with Saga,via Birmingham Midshires,at 6.41% (not an ISA).That is because i am about to be a non tax payer this next tax year,plus am over 50.I have not had any problems with Bradford and Bingley so again would recommend them and the way they run their website.

Thanks for the advice