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

Aegis

McSaver wrote: »

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

Recently withdrawn I'm afraid. You can get 10% as a Plus or Premier customer, but I don't think there are any more HSBC regular savers for normal customers planned

FirstDirect might still be doing theirs though.

McSaver

Aegis wrote: »

Recently withdrawn I'm afraid. You can get 10% as a Plus or Premier customer, but I don't think there are any more HSBC regular savers for normal customers planned

FirstDirect might still be doing theirs though.

Thanks for that, I was just about to mention the 12% one that A&L but i remembered that 1 got withdrawn a few months back.

Mikeyorks

bgscotty wrote: »

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%)?

The real distinction is whether or not it's 'new money' you're funding the Regular Saver with? If it is, then it's still a good avenue .... as it's an undiluted 7% gross.

But if it's existing money you're re-cycling ..... then the overall rate you get is 50% conditional on the feeder account you're using. For example .. the Halifax Websaver is an excellent feed for their Regular saver, as it's instant transfer. But the rate has dropped considerably and you may now only get 4.61% (temporarily better on the 'with card' option as there's a bonus to mid-July). So you only get 5.8% overall on £3k between the feeder and saver accounts - which is now far from a good deal. And it's debateable as to whether it's worth the effort.

That situation will change 27th May when 'faster payments' (allegedly) arrives. And which means the arithmetic changes again, as it should be easier to get a better rate feeder account elsewhere ..... yet SO to the Saver account without the current (for most) interest loss on BACS delays between institutions.

mary

Why not open the Halifax High Interest Current Account (6.17%), pay in £1,000 each month to get that rate and then drip feed the £250 into the Regular Saver on the same day. That's what I do.
http://www.halifax.co.uk/bankaccounts/highinterestcurrentaccount.asp

moonrakerz

Aegis wrote: »

FirstDirect might still be doing theirs though.

They still are.

fizzbang

Mikeyorks wrote: »

That situation will change 27th May when 'faster payments' (allegedly) arrives. And which means the arithmetic changes again, as it should be easier to get a better rate feeder account elsewhere ..... yet SO to the Saver account without the current (for most) interest loss on BACS delays between institutions.

What 'faster payments'? Fill me in please.

XXXX

McSaver wrote: »

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

I had both on monthly £250 a month, for 12 months after tax Halifax paid £91.30 while HSBC paid £108.27. You cold tell the difference.

Anyway, Abbey's regular saver still pays 7.25% gross p.a./AER, higher than Halifax.

MPH80

Faster payments ...

http://en.wikipedia.org/wiki/Faster_Payments_Service

Mikeyorks

fizzbang wrote: »

What 'faster payments'? Fill me in please.

http://www.apacs.org.uk/payments_industry/faster_payments_service.html

.... basics here ..... but read the right hand links. Essentially it means that SOs and bill payments currently taking 3/4 days between institutions .... will happen on the same day. And 'instant payments' (which might carry a small charge) ..... will take place in minutes - and these will be available 7 days per week.

fizzbang

thanks both!