when a regular saver is worth it:

£_stretcher

I agree with WaltD opening an account with the Halifax is a nightmare!! Even a year on they were still asking for details they had received in triplicate when I first opened the accounts. I have just received the interest on my regular saver....grand total £91.

stphnstevey

Funny you should mention Halifax - literally just got off the phone opening my second account with them. It was nice to be able to talk to someone 24hrs a day and they were professional and quick. Although you do go on your own experiences, I haven't had a problem with them.

PS - Although you can calculate to the nearest penny what you could get, to the nearest pound is fine for me and I imagine the majority of people. An equation with more than four brackets is not worth the hassle.

steady__eddie

Reading this thread intrigued me as to the cost in terms of interest lost due to the standing order process. I have had had still do have a few Reg Savers so looking at the statements which I received from them and comparing these with the a/c. which funded them, it is possible to see how many days each year when the money is "in transit" and not earning anything.
The following, is my findings, (all building societies).
Staffordshire 39 days, Leeds 35 days, Skipton 38 days, Derbyshire 38 days, Bath 37 days, Cheshire 34 days, Principality 33 days.
It will be seen that you can write off one months payment for a month every year in terms of interest foregone.
One thing that did surprise me however is that I have a Regular Saver with Hanley where funding is via the direct debit route. Here, the number of days in a year where the cash was "in transit" amounted to 4.
I really must get a life.

masonic

steady__eddie wrote:

Reading this thread intrigued me as to the cost in terms of interest lost due to the standing order process. I have had had still do have a few Reg Savers so looking at the statements which I received from them and comparing these with the a/c. which funded them, it is possible to see how many days each year when the money is "in transit" and not earning anything.
The following, is my findings, (all building societies).
Staffordshire 39 days, Leeds 35 days, Skipton 38 days, Derbyshire 38 days, Bath 37 days, Cheshire 34 days, Principality 33 days.
It will be seen that you can write off one months payment for a month every year in terms of interest foregone.
One thing that did surprise me however is that I have a Regular Saver with Hanley where funding is via the direct debit route. Here, the number of days in a year where the cash was "in transit" amounted to 4.
I really must get a life.

Eh? How are you working out these figures? Surely each installment is in transit for just 2-4 days.

If you transfer £3000 in one go, you will lose the same amount of interest during the transfer as if you made 12 x £250 transfers. Or am I missing something?

steady__eddie

In say January, the cash would be "missing", that is gone from the originating a/c. but not credited to the Reg save a/c. for 2 days. The next month, this period could be 4 days, the following month it might be 3 days. I have added all these 2s and 3s and 4s for the year to arrive at the total for the year. As a matter of interest ! Skipton took the longest to receive a monthly payment taking 7 days.
"If you transfer £3000 in one go, you will lose the same amount of interest during the transfer as if you made 12 x £250 transfers. Or am I missing something?"
You are correct in your assumption, but I was following the title of the thread namely "When a regular saver is worth it" and providing some empirical proof of the costs associated with regular savers.
Perhaps shortly, when the banks introduce same day clearance (and invariably charge us for it ?) we will be able to see real costs involved and this IMO could seriously curtail the popularity of regular savers.

wardrobe

i see where your coming from eddie, i think i'll wait before jumping head first into this regular savings thingy, i was about to start emptying my nest egg(s) into about 12 regular savings accounts both in my name and the mrs.

lose a months interest per year from the nest, that would be £400 per calendar year.

im off for a hot bath.

grumbler

wardrobe wrote:

...lose a months interest per year from the nest, that would be £400 per calendar year....

I can only repeat again and again that you don't lose 'a months interest per year from the nest'. What you actually can lose with 12 regular savings accounts £250 p.m. each is about a month interest on £3000, i.e. about £3000*4%/12=£10 ....

masonic

steady__eddie wrote:

In say January, the cash would be "missing", that is gone from the originating a/c. but not credited to the Reg save a/c. for 2 days. The next month, this period could be 4 days, the following month it might be 3 days. I have added all these 2s and 3s and 4s for the year to arrive at the total for the year. As a matter of interest ! Skipton took the longest to receive a monthly payment taking 7 days.

OK, as long as you as saying it is equivalent to one of those £250 installments being in transit for that time and not all of them.

masonic

wardrobe wrote:

lose a months interest per year from the nest, that would be £400 per calendar year.

It is not a months interest on the balance, it is a months interest on one installment (1/12 of the balance). This is equivalent to about 3 days overall.

Aside: See.

wardrobe

grumbler wrote:

I can only repeat again and again that you don't lose 'a months interest per year from the nest'. What you actually can lose with 12 regular savings accounts £250 p.m. each is about a month interest on £3000, i.e. about £3000*4%/12=£10 ....

ahh back from my bath.

many thanks for clearing my flawed working out.

so im only going to lose £10 per year in total through "electronic transer black hole" lost interest. on transfering £3,000 pcm into Regular saving accounts?