Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • AndyPK
    • By AndyPK 10th Feb 18, 3:45 PM
    • 2,905Posts
    • 813Thanks
    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 2
    • ValiantSon
    • By ValiantSon 10th Feb 18, 11:26 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    You think 1.4% is better than 2.xx%?
    Originally posted by Eco Miser
    It depends what the .xx% is, but if it is 2.25% (as the OP indicates) then yes, 1.4% in an easy access savings account would be better on the total sum than the regular saver would be, e.g. 250 p/m at 2.25% = 36.44, whereas 3000 at 1.4% over 12 months = 42.
    Last edited by ValiantSon; 10-02-2018 at 11:29 PM.
    • chockydavid1983
    • By chockydavid1983 10th Feb 18, 11:30 PM
    • 584 Posts
    • 355 Thanks
    chockydavid1983
    But presumably you'd be feeding the money from the 1.41% account into the 2.5% account...
    • ValiantSon
    • By ValiantSon 10th Feb 18, 11:34 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    But presumably you'd be feeding the money from the 1.41% account into the 2.5% account...
    Originally posted by chockydavid1983
    Why would you presume that? People could easily be funding it from monthly income, and even if they weren't 1.4% on the lump sum is still more than 2.25% on the regular deposit.
    • redux
    • By redux 11th Feb 18, 1:42 AM
    • 18,226 Posts
    • 24,109 Thanks
    redux
    Why would you presume that? People could easily be funding it from monthly income, and even if they weren't 1.4% on the lump sum is still more than 2.25% on the regular deposit.
    Originally posted by ValiantSon
    No it isn't. You dont have the whole 3000 in the regular saving account, and whole 3000 doesn't disappear from the 1.4% account on the first day

    Someone gradually transferring from one to the other would have about 55.

    If it's simpler anf you're talking only about regular savings from income, putting it in the lower interest account doesn't give you 42, but about 23.
    • colsten
    • By colsten 11th Feb 18, 7:05 AM
    • 9,028 Posts
    • 7,806 Thanks
    colsten
    Why would you presume that? People could easily be funding it from monthly income, and even if they weren't 1.4% on the lump sum is still more than 2.25% on the regular deposit.
    Originally posted by ValiantSon
    How does putting some of your monthly income into a 1.4% account pay you more interest than putting the same amount, at the same monthly time, into one or more regular savers paying 2.25%?
    • polymaff
    • By polymaff 11th Feb 18, 9:12 AM
    • 2,117 Posts
    • 917 Thanks
    polymaff
    You receive the full rate however you fund the account
    Originally posted by jimjames
    Missing the point, Jim.
    • chockydavid1983
    • By chockydavid1983 11th Feb 18, 9:16 AM
    • 584 Posts
    • 355 Thanks
    chockydavid1983
    The strategy for getting the best returns, if we're talking about cash only, is to have it in the highest paying current account and transfer gradually to regular savers and also put excess monthly income into regular savers.
    • Snowflake
    • By Snowflake 11th Feb 18, 10:09 AM
    • 15 Posts
    • 3 Thanks
    Snowflake
    Thank you andypk and Yorkshire boy, will try and get my head round that later! Appreciate your time.
    • planteria
    • By planteria 11th Feb 18, 10:26 AM
    • 5,000 Posts
    • 1,110 Thanks
    planteria
    i currently have 1k/m going into HSBC/M&S/Nationwide.. but when the latter matures i'll only be able to stash 750/m at 5%. and that's if things don't deteriorate further. below 5% i won't bother.. i had an FD current account way back, and since then they haven't allowed me to open another account with them.
    • ValiantSon
    • By ValiantSon 11th Feb 18, 10:34 AM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    No it isn't. You dont have the whole 3000 in the regular saving account, and whole 3000 doesn't disappear from the 1.4% account on the first day
    Originally posted by redux
    What?

    I never said that you did have the full 3000 in the regular saver! In fact, I quite clearly said that you would be putting 250 in each month, but having the full 3000 in a savings account at 1.4% would yield a higher return.

    Someone gradually transferring from one to the other would have about 55.
    Originally posted by redux
    Again, I never said that they wouldn't. I was simply responding to an erroneous comment that the regular saver at 2.xx% was better than a savings account at 1.4%. The exact arrangements of how you move the money around changes the return, but the bold statement is false.

    If it's simpler anf you're talking only about regular savings from income, putting it in the lower interest account doesn't give you 42, but about 23.
    Originally posted by redux
    And once again, I wasn't talking about that either. I did make a second post, commenting on the possibility of someone paying in to a regular saver out of monthly income, but that was an entirely separate point. If you conflate two different and separate comments I make on differing scenarios, then you will misunderstand what I was saying.
    • ValiantSon
    • By ValiantSon 11th Feb 18, 10:35 AM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    How does putting some of your monthly income into a 1.4% account pay you more interest than putting the same amount, at the same monthly time, into one or more regular savers paying 2.25%?
    Originally posted by colsten
    It doesn't and I never said that it did! You have misunderstood.
    • ValiantSon
    • By ValiantSon 11th Feb 18, 10:37 AM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    i currently have 1k/m going into HSBC/M&S/Nationwide.. but when the latter matures i'll only be able to stash 750/m at 5%. and that's if things don't deteriorate further. below 5% i won't bother.. i had an FD current account way back, and since then they haven't allowed me to open another account with them.
    Originally posted by planteria
    If you open a Santander 123 or 123 Lite you'll have access to 200 p/m at 5%.
    • planteria
    • By planteria 11th Feb 18, 10:43 AM
    • 5,000 Posts
    • 1,110 Thanks
    planteria
    good one VS, thank you.
    • BarGin
    • By BarGin 11th Feb 18, 11:06 AM
    • 788 Posts
    • 114 Thanks
    BarGin
    Where is the 1.4% account that has been frequently referred to in this thread please?
    • YorkshireBoy
    • By YorkshireBoy 11th Feb 18, 11:08 AM
    • 30,157 Posts
    • 18,015 Thanks
    YorkshireBoy
    Where is the 1.4% account that has been frequently referred to in this thread please?
    Originally posted by BarGin
    It's one of 3 examples used for illustration purposes, the others being 1.5% and 1.41%.
    • AndyPK
    • By AndyPK 11th Feb 18, 11:57 AM
    • 2,905 Posts
    • 813 Thanks
    AndyPK
    Where is the 1.4% account that has been frequently referred to in this thread please?
    Originally posted by BarGin
    Sorry, its not available to open now. Was opened years ago and its rate increased a tad recently.
    • redux
    • By redux 11th Feb 18, 12:22 PM
    • 18,226 Posts
    • 24,109 Thanks
    redux
    What?

    I never said that you did have the full 3000 in the regular saver! In fact, I quite clearly said that you would be putting 250 in each month, but having the full 3000 in a savings account at 1.4% would yield a higher return.



    Again, I never said that they wouldn't. I was simply responding to an erroneous comment that the regular saver at 2.xx% was better than a savings account at 1.4%. The exact arrangements of how you move the money around changes the return, but the bold statement is false.



    And once again, I wasn't talking about that either. I did make a second post, commenting on the possibility of someone paying in to a regular saver out of monthly income, but that was an entirely separate point. If you conflate two different and separate comments I make on differing scenarios, then you will misunderstand what I was saying.
    Originally posted by ValiantSon
    You weren't comparing like with like.

    You said the interest in 3000 for a whole year in the lower interest account is more than the interest on the regular savings account.

    People could easily be funding it from monthly income, and even if they weren't 1.4% on the lump sum is still more than 2.25% on the regular deposit.
    It's true in itself, but the reason for the difference is you are talking about 2 people with different availablity of money.

    Someone who has monthly income gradually increasing their savings should go for the regular savings account, because some of these have the higher interest

    With account availability as they are, someone who has a lump sum already would be best off with decent interest on the lump sum, gradually transferring to higher interest.

    Your remark that the interest is more on 1.4% ordinary than 2.25% regular savings sounded like you were negating that, even if you didn't mean to.

    I don't know why these two numbers are floating around anyway. Higher rates than that are available.

    I don't think anyone mentioned yet that some regular savings accounts have actually increased rates. Bank of Scotland Halifax and Lloyds are all 2.5% for new accounts now (dont know when this started) and the Club Lloyds is 3%, so anyone at Lloyd's could have 2% on the current account and up to 650 a month added at average 2.8%.
    • adindas
    • By adindas 11th Feb 18, 12:27 PM
    • 3,558 Posts
    • 2,205 Thanks
    adindas
    Why would you presume that? People could easily be funding it from monthly income, and even if they weren't 1.4% on the lump sum is still more than 2.25% on the regular deposit.
    Originally posted by ValiantSon
    Indeed 2.25% pa interest on RSA is equivalent to (6.5/12)*2.25% =1.22%. So effective inetrest of 2.25% RSA is just 1.22% which is smaller than 1.4% pa.

    But is it the way people managing their account ???
    If you have a regular income of 500 (say) you will put it in higher interest current account first (not in a saving account) earning interest of at least 2% , or even 5% if you still have a space for this.

    Only if you have maxed out your current AC earning 2%+ interest you start recycliung it by drip feeding it to RSA earning higher than the interest in the current account. If not there is no point to dripfeed it to RSA.
    Last edited by adindas; 11-02-2018 at 12:33 PM.
    • AndyPK
    • By AndyPK 11th Feb 18, 12:48 PM
    • 2,905 Posts
    • 813 Thanks
    AndyPK
    yes I was just looking at the lloyds website

    2.5% 250 a month
    3% 400 a month (club lloyds customers)

    Could someone tell me what they would earn in a year please, maxed out.

    75 ish ? for the 3%
    35 ish ? for 2%
    • AndyPK
    • By AndyPK 11th Feb 18, 12:54 PM
    • 2,905 Posts
    • 813 Thanks
    AndyPK
    using the formula on previous page I get

    78
    40.62


    But these seam too high
    Last edited by AndyPK; 11-02-2018 at 12:59 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,326Posts Today

7,851Users online

Martin's Twitter
  • RT @LaraLewington: ...and mine suggested I'd achieved a lifelong ambition of being sawn in half by a magician - at our wedding. Wasn't. Don?

  • We are working on it - I think BA has behaved awfully on this. Those flight were no obviously a glitch. It should? https://t.co/8pvtXtUEqi

  • RT @thenicolabryant: Absolutely. We need mental health and financial health as advocated my @MartinSLewis , to be taught in schools. So muc?

  • Follow Martin