Is a Regular Saver (Halifax 7%) still a good deal

bgscotty

Hello.

I'd welcome a little advice...

I save £250 each month in the 7% Halifax Regular Saver.

Could you tell me if Regular Saver accounts are a good way to save

or

is it a better deal to invest the lump sum of £3000 (£250 x 12) in a fixed rate account at a lower rate (eg 6.86%)?

Thank you in advance.

BG

debbie42

In terms of annual return, you'd get more interest from having £3000 all year at the lower fixed rate. It depends what rate your feeder account has though?

Theoretically, you'd be better off moving it at a drip feed into the higher AER rate, but the difference is minor, for the extra effort.

[Deleted User]

Play around with the Savings Calculator here:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc

oldfella

I only go for RS that are either more than 1 year, or an interest rate over 8%

if bank rate carries on reducing then worth reviewing

bgscotty

Hello.

Thank you everyone.

Oldfella- do you mean that if rates continue to go down, a Regular Saver becomes more or less attractive? Obviously the higher % the better.

Cheers.

BG

oldfella

Oldfella- do you mean that if rates continue to go down, a Regular Saver becomes more or less attractive? Obviously the higher % the better.

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more attractive - when rates were higher it was easy to get 6.5%, so the value of getting 7% on a RS of £250 per month after tax is only around £10pa - more trouble than it is worth

notis7

Regular savers are great products for first time savers....not lump sum investors....

oldfella

Regular savers are great products for first time savers....not lump sum investors....

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have to disagree - why not do both - I get substantial interest for little effort using the RS that meet my rules of more than 8% or more than 1 year. Sadly the number of choices are reducing.

debbie42

notis7 wrote: »

Regular savers are great products for first time savers....not lump sum investors....

Those two categories aren't necessarily connected. I'm not a "first time saver", I do have some lump sum savings elsewhere. I also have a regular saver with the West Brom that is paying me 7.5%. It's worth the bother at that rate for me.

bgscotty

Thank you all.

If I understand the idea behind Regular Savers, the best idea is to drip feed into the Regular Saver from another high interest account.

What type of savings accounts have high interest rates AND allow monthly withdrawals?

Cheers,

BG

McSaver

The halifax 7% regular saver is a poor deal because HSBC have a regular saver that pays 8%