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  • FIRST POST
    • AndyPK
    • By AndyPK 10th Feb 18, 3:45 PM
    • 2,778Posts
    • 767Thanks
    AndyPK
    Reg. Savers 5%
    • #1
    • 10th Feb 18, 3:45 PM
    Reg. Savers 5% 10th Feb 18 at 3:45 PM
    Well I'm grumpy.

    These regular savers seam to be diminishing either in rate or how much you can put in them.


    Another one in finishing soon and the replacement is only 2.xx%

    I have a santander and nationwide already.

    I may as well stick the money in a 1.4% account.

    I'm pondering HSBC 250 and M&S 250 (earn 81)

    But getting to the point where I wonder if it's worth the trouble. I guess if I include the switching bonus it is.

    Can anyone recommend an account to open, that I can use to sacrifice to get a switching bonus?

    Are there any with nice rates on current accounts ? I have BOS,S123


    Thanks
Page 1
    • Eco Miser
    • By Eco Miser 10th Feb 18, 4:03 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    • #2
    • 10th Feb 18, 4:03 PM
    • #2
    • 10th Feb 18, 4:03 PM
    You think 1.4% is better than 2.xx%? The trick is to spread your regular savers over the year so that a each matures, its contents re spread into the others, keeping a fairly level amount getting the best rates.
    You're right though that the number of pounds available from each account each year is not inspiring.

    I presume you've read the articles and threads on saving and regular savers?
    Last edited by Eco Miser; 10-02-2018 at 4:06 PM. Reason: added links
    Eco Miser
    Saving money for well over half a century
    • RG2015
    • By RG2015 10th Feb 18, 4:05 PM
    • 1,126 Posts
    • 675 Thanks
    RG2015
    • #3
    • 10th Feb 18, 4:05 PM
    • #3
    • 10th Feb 18, 4:05 PM
    These regular savers seam to be diminishing either in rate or how much you can put in them.

    Another one in finishing soon and the replacement is only 2.xx%
    Originally posted by AndyPK
    Thanks for the heads up. Just one question, which one is reducing to 2.xx%?
    • Kim_13
    • By Kim_13 10th Feb 18, 4:09 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    • #4
    • 10th Feb 18, 4:09 PM
    • #4
    • 10th Feb 18, 4:09 PM
    Well I'm grumpy.

    These regular savers seam to be diminishing either in rate or how much you can put in them.


    Another one in finishing soon and the replacement is only 2.xx%

    I have a santander and nationwide already.

    I may as well stick the money in a 1.4% account.

    I'm pondering HSBC 250 and M&S 250 (earn 81)

    But getting to the point where I wonder if it's worth the trouble. I guess if I include the switching bonus it is.

    Can anyone recommend an account to open, that I can use to sacrifice to get a switching bonus?

    Are there any with nice rates on current accounts ? I have BOS,S123


    Thanks
    Originally posted by AndyPK
    There's also First Direct 300 per month at 5%.

    Sadly the only place with a decent interest paying current account and Regular Saver is Nationwide (FlexDirect 5% year.) Sadly it's now a one time only offer though as far as the current account goes.

    Kent Reliance will take 500 per month at 3% but it needs to be opened in branch. You might find the MSE guide to regular savers of interest: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts
    Last edited by Kim_13; 10-02-2018 at 4:14 PM.
    Sealed Pot 11 #520 ~ /100
    VSP 2018 #9 ~ 19.55/180.00
    CCCC 2018 #1 ~ 20.75/180.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • polymaff
    • By polymaff 10th Feb 18, 4:09 PM
    • 2,047 Posts
    • 885 Thanks
    polymaff
    • #5
    • 10th Feb 18, 4:09 PM
    • #5
    • 10th Feb 18, 4:09 PM
    The trick is to fund regular savers from regular income. Then you really do receive the full rate.
    • AndyPK
    • By AndyPK 10th Feb 18, 4:12 PM
    • 2,778 Posts
    • 767 Thanks
    AndyPK
    • #6
    • 10th Feb 18, 4:12 PM
    • #6
    • 10th Feb 18, 4:12 PM
    On maturity the virgin money replacement is 2.25%

    The current one will go into an account earning 1%
    • TheShape
    • By TheShape 10th Feb 18, 4:59 PM
    • 1,266 Posts
    • 1,073 Thanks
    TheShape
    • #7
    • 10th Feb 18, 4:59 PM
    • #7
    • 10th Feb 18, 4:59 PM
    On maturity the virgin money replacement is 2.25%
    Originally posted by AndyPK
    You've currently got a Virgin Money Regular Saver paying 5%?
    • polymaff
    • By polymaff 10th Feb 18, 5:05 PM
    • 2,047 Posts
    • 885 Thanks
    polymaff
    • #8
    • 10th Feb 18, 5:05 PM
    • #8
    • 10th Feb 18, 5:05 PM
    Sadly the only place with a decent interest paying current account and Regular Saver is Nationwide (FlexDirect 5% year.) Sadly it's now a one time only offer though as far as the current account goes.
    Originally posted by Kim_13
    ... and, double-sadly - the monthly max deposit in the regular saver is now half of what it was a year ago.
    • AndyPK
    • By AndyPK 10th Feb 18, 5:18 PM
    • 2,778 Posts
    • 767 Thanks
    AndyPK
    • #9
    • 10th Feb 18, 5:18 PM
    • #9
    • 10th Feb 18, 5:18 PM
    You've currently got a Virgin Money Regular Saver paying 5%?
    Originally posted by TheShape
    Oh Nope, already down at 2.25%



    I guess I was having a similar problem last year! and as I had an account with VM it was easy to open one of these.
    Last edited by AndyPK; 10-02-2018 at 5:31 PM.
    • TheShape
    • By TheShape 10th Feb 18, 5:31 PM
    • 1,266 Posts
    • 1,073 Thanks
    TheShape
    Oh Nope, already down at 2.25%

    Was it like that when I opened it ?

    I guess I was having a similar problem last year! and as I had an account with VM it was easy to open one of these.
    Originally posted by AndyPK
    Yes. I guess it's the Regular E-Saver Issue 3 that matures on 20th February?

    Regular E-Saver Issue 9 is available to open now @ 2.25% if you want to start paying the maturing funds back into a Virgin Money Regular Saver. Better rates available elsewhere though.
    • AndyPK
    • By AndyPK 10th Feb 18, 5:35 PM
    • 2,778 Posts
    • 767 Thanks
    AndyPK
    So basically what you are saying is that I need to open 2
    current accounts and then switch them to hsbc and m&s and maybe first direct. To get switching bonus. I can then get their regular saver for a year.

    the bonus + reg saver is worth doing. I just wished their current accounts earned some interest!
    Last edited by AndyPK; 10-02-2018 at 5:38 PM.
    • badger09
    • By badger09 10th Feb 18, 5:52 PM
    • 5,941 Posts
    • 5,281 Thanks
    badger09
    So basically what you are saying is that I need to open 2
    current accounts and then switch them to hsbc and m&s and maybe first direct. To get switching bonus. I can then get their regular saver for a year.

    the bonus + reg saver is worth doing. I just wished their current accounts earned some interest!
    Originally posted by AndyPK
    Which you can renew every year. At least, you can at the moment, of course no guarantee that will continue
    • YorkshireBoy
    • By YorkshireBoy 10th Feb 18, 6:22 PM
    • 30,132 Posts
    • 17,982 Thanks
    YorkshireBoy
    So basically what you are saying is that I need to open 2
    current accounts and then switch them to hsbc and m&s and maybe first direct. To get switching bonus. I can then get their regular saver for a year.

    the bonus + reg saver is worth doing. I just wished their current accounts earned some interest!
    Originally posted by AndyPK
    All 3 of those have differing hoops to jump through. Be sure you know which has which before jumping in.
    • Katiehound
    • By Katiehound 10th Feb 18, 6:40 PM
    • 4,271 Posts
    • 38,649 Thanks
    Katiehound
    So basically what you are saying is that I need to open 2
    current accounts and then switch them to hsbc and m&s and maybe first direct. To get switching bonus. I can then get their regular saver for a year.

    the bonus + reg saver is worth doing. I just wished their current accounts earned some interest!
    Originally posted by AndyPK
    What do you want jam on it??

    Hopefully you are going to get a welcome financial handshake and access to a decent rate RS (M&S is their giftcard not cash- but still useful)
    You could also open some current a/cs which pay interest such as Tesco & BoS but you will need DDs going out. Yes, I know 2% isn't amazing, but it could be worse- zero, zilch, nada!!
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks

    2018 Wombling : Entrant 8 ..39 cc+.840mm(84p) + RK 3.07= 4.30
    • Snowflake
    • By Snowflake 10th Feb 18, 6:58 PM
    • 15 Posts
    • 3 Thanks
    Snowflake
    Please can someone explain how 5%interest is worked out on for example the 300 per month that you can save with first direct reg saver, which amounts to 3600 over a year. In idiot proof numerical jargon would be great..I know how much interest you get cos I did it last year but how it's worked out is a mystery and I do not get it t all. Thank you
    • AndyPK
    • By AndyPK 10th Feb 18, 7:01 PM
    • 2,778 Posts
    • 767 Thanks
    AndyPK
    Yes. Would be useful to park some money !

    Santander TSB, Clydesdale used to have good current accounts and savers.

    I have BOS and Tesco already thank you
    • AndyPK
    • By AndyPK 10th Feb 18, 7:09 PM
    • 2,778 Posts
    • 767 Thanks
    AndyPK
    Compound interest. Get yourself an excel spreadsheet.

    At the end of the first month you have 300
    So 300 divided by 100 times 5 interest percent divided by 12 months will be the interest after first month.

    Then the second month is 300 + interest + 300 and work out the interest is on that total and so on
    Last edited by AndyPK; 10-02-2018 at 7:11 PM.
    • YorkshireBoy
    • By YorkshireBoy 10th Feb 18, 7:09 PM
    • 30,132 Posts
    • 17,982 Thanks
    YorkshireBoy
    Please can someone explain how 5%interest is worked out on for example the 300 per month that you can save with first direct reg saver, which amounts to 3600 over a year. In idiot proof numerical jargon would be great..I know how much interest you get cos I did it last year but how it's worked out is a mystery and I do not get it t all. Thank you
    Originally posted by Snowflake
    1st payment in for 12 months, second for 11 months, 3rd for 10 months, etc.

    So you have:

    12/12ths + 11/12ths + 10/12ths + ....

    12/12 + 11/12 + 10/12.........+ 3/12 + 2/12 + 1/12 = 78/12 = 6.5

    So you've the equivalent of the whole 3K being in for only 6.5 months, generating interest of:

    3,000 x 5% / 12 x 6.5 = 81.25

    Of course if you're drip feeding the 3K from an account making 1.5% then you'll also earn interest on the 3K for the other 5.5 months, so:

    3,000 x 1.5% / 12 x 5.5 = 20.63

    Total interest of 101.88

    And 101.88 / 3,000 x 100% = 3.396%

    Much better than 1.5%.
    • YorkshireBoy
    • By YorkshireBoy 10th Feb 18, 7:11 PM
    • 30,132 Posts
    • 17,982 Thanks
    YorkshireBoy
    Compound interested. Get yourself an excel spreadsheet.

    At the end of the first month you have 300
    So 300 divided by 100 times 5 interest percent divided by 12 months will be the interest after first month.

    Then the second month is 300 + interest + 300 and work out the interest is on that total and so on
    Originally posted by AndyPK
    There's no monthly compounding on these regular savers.
    • jimjames
    • By jimjames 10th Feb 18, 8:49 PM
    • 12,545 Posts
    • 11,177 Thanks
    jimjames
    The trick is to fund regular savers from regular income. Then you really do receive the full rate.
    Originally posted by polymaff
    You receive the full rate however you fund the account
    Remember the saying: if it looks too good to be true it almost certainly is.
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