4% Regular Saver from Ford Money
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4% Regular Saver from Ford Money

Editor 64
Editor
Found 18th May 2017
Hey gang… I’ve found a great deal for regular savers who want to stash away up to £250 each month.

Ford Money’s (yes the car company) has launched two savings products paying 4% interest:

•\x09Regular Saver
•\x09Regular Saver Cash ISA

The products launch on May 22 and will only be on sale for a limited period. Unlike some other regular saver accounts, these deals are open to anyone – there’s no requirement to hold another product with Ford Money.

How do regular saver accounts work?
Regular saver accounts allow savers to save a certain amount of cash each month with the interest rate set for a year. So, they’re great for people who want to save regularly from their salary rather than for people who have a lump sum to stash away.

In the case of Ford, savers can save between £25 and £250 each month over the 12-month term. So, you could potentially earn a total of £55.62 in interest if you save £250 a month (£3,000 in total).

Ford savers can vary the amount they save every month and won’t be penalised if they don’t make deposits every month.

Some other regular saver accounts insist savers stick to the same amount each month, so Ford’s deal is pretty flexible in comparison.

How does the rate compare?
There are a couple of regular saver accounts paying 5% – such as from M&S Bank and First Direct – but these require you to hold a current account with the same provider.

But Ford’s accounts are available to all savers, without the requirement to be an existing account holder. That makes 4% the best rate currently on offer to anyone and everyone.

The small print
With the Isa option, account closure, withdrawals and transfers out are permitted but savers lose 90 days’ interest on the amount withdrawn.

Those without the tax-free wrapper will not be able to withdraw funds or close the account before the end of the 12-month term – this is pretty standard for a regular saver.

Both accounts mature after 12 months and savers can choose to transfer their cash to another Ford Money product or simply withdraw it.

If no option is selected, funds held in a Regular Saver will be moved to Ford Money’s Flexible Saver (currently paying 1%), and funds in a Regular Saver Cash ISA will be moved to Ford Money’s Flexible Cash ISA (currently 0.9%). But personally, I’d look round for a better rate at this stage.

Why I like it
4% is a pretty decent rate for a regular saver at the moment and, as I said, unlike the other top paying deals you don’t have to go through all the hassle of opening a current account to get the rate.

Regular savers are also great for instilling some savings discipline. I set up a direct debit to go to my regular saver the day after pay day, then just forget about it until the end of the year when there’s a tidy sum, including interest, sitting in the account.



Community Updates
64 Comments
5% with First Direct and up to £300 per month.
You can also play 'catch-up' if you miss or make a smaller payment.
Even with that and at 5% gross for the full amount over 12 months, you'll still earn less than £100!
Exciting? I think not!
There are better options out there depending who you bank with. First Direct, HSBC, Nationwide, Marks and Spencer. However, If you already have those this is fine. I put all my normal spending on a 0% purchase card and then put the "real money" I would have spent in a regular saver ( or several of them). After 12 months I take the "real money" out at the maturity of the regular saver and close or transfer the credit card balance to a new 0% card and then continue. It's easy money if you are disciplined about it. This "stoozing" makes me about £400 a year in tax free interest which isn't a massive amount but it's free money really.
Better to have a TSB current plus account
manicmidlander

There are better options out there depending who you bank with. First … There are better options out there depending who you bank with. First Direct, HSBC, Nationwide, Marks and Spencer. However, If you already have those this is fine. I put all my normal spending on a 0% purchase card and then put the "real money" I would have spent in a regular saver ( or several of them). After 12 months I take the "real money" out at the maturity of the regular saver and close or transfer the credit card balance to a new 0% card and then continue. It's easy money if you are disciplined about it. This "stoozing" makes me about £400 a year in tax free interest which isn't a massive amount but it's free money really.



Exactly that. Interest rates aren't great on any savings account so if you've got the money it's worth getting as many as you can to maximise the interest.

I buy everything on a Virgin Atlantic AMEX card and pay it back at the end of the month i.e. no interest, and build up the airmiles.
greencode

Exactly that. Interest rates aren't great on any savings account so if … Exactly that. Interest rates aren't great on any savings account so if you've got the money it's worth getting as many as you can to maximise the interest.I buy everything on a Virgin Atlantic AMEX card and pay it back at the end of the month i.e. no interest, and build up the airmiles.


If you are sensible then Credit Cards, offset mortgages and other flexible finance products can be rather useful. Right now many companies even offer you cashback to take their 0% Purchase Cards. Unfortunately not everyone is financially savvy and this is where the problems start. Those people are in effect subsidizing those of us who know how to use these deals. Personally I have never paid any interest or fees on a credit card in over 20 years.
spinks

Better to have a TSB current plus account



Even better to have both , no ?
How much are you allowed to put away into a regular saver cash ISA - is it the same as the standard regular saver ? (ie £250 a month).

If this is the case then you could earn £111.24 for the year based on 12 x £250 deposits into each account .... not too shabby at all
Edited by: "rooney10" 18th May 2017
whats the upcoming ISA rate?
ssc1

whats the upcoming ISA rate?



read the OP
rooney10

read the OP


its currently .9%. im asking for the upcoming rate.
backinstock

5% with First Direct and up to £300 per month.You can also play … 5% with First Direct and up to £300 per month.You can also play 'catch-up' if you miss or make a smaller payment.Even with that and at 5% gross for the full amount over 12 months, you'll still earn less than £100! Exciting? I think not!


First Direct is not an ISA so there is tax on the savings
TesaoGostoso

First Direct is not an ISA so there is tax on the savings



I never said it was.

It's a regular saver. Maximum of £300 per month.
Horses for courses as they say.
These 4% accounts add up................

Also the money you can make off of all the current account switching deals around is worth having.
Just open some "spare" current accounts, and set up dd's on them by opening up Tesco savings accounts. Fund these Tesco savings accounts by dd and then switch the "spare" current account to another bank. As regards the monthly credits that the banks require to get all the benefits, just pay the money in and transfer it out online to another current account that needs funding the following day.
Takes a little work but end result is a good return on your time and effort.
Can not see this on their website yet ? Am i looking in the wrong place ?
Can't see 4% on the site.....
Sambat

Can't see 4% on the site.....



Will be there on Monday, when it comes out. Details here thisismoney.co.uk/mon…tml
greencode

Will be there on Monday, when it comes out. Details here … Will be there on Monday, when it comes out. Details here http://www.thisismoney.co.uk/money/saving/article-4510644/Ford-Money-launches-best-buy-4-cent-regular-saver.html


Original Poster Editor
rooney10

How much are you allowed to put away into a regular saver cash ISA - is … How much are you allowed to put away into a regular saver cash ISA - is it the same as the standard regular saver ? (ie £250 a month).If this is the case then you could earn £111.24 for the year based on 12 x £250 deposits into each account .... not too shabby at all


Yes you can save £250 a month in the ISA as well. However, if the total interest you earn a year is below £1000 (for a basic rate taxpayer) you won't pay tax anyway, ISA or non-ISA.
Open a nationwide flex direct and send £500 a month to their regular saver . Even better if you can recommend a 'freind'. Another £200.
These are really good rates especially because they are standalone products - you don't have to get a current account for them.

Effectively £500 per month earning 4% - I'll be applying on Monday.

Especially useful if you've maxed out HSBC/FD/M&S/NW regular savers all paying 5%.
Is this regulated and comply with the FSCS savings compensation rules (£75,000 limit)?
Thanks for the heads up op.
ftbf444

Is this regulated and comply with the FSCS savings compensation rules … Is this regulated and comply with the FSCS savings compensation rules (£75,000 limit)?



I believe the limit is now back up to £85,000. https://www.fscs.org.uk/what-we-cover/compensation-limits/
You can check here : https://protected.fscs.org.uk/About-FSCS/
Looks like Ford Money is a trading name of FCEBank, which is what I believe their registration under FSCS is lodged under.
ssc1

its currently .9%. im asking for the upcoming rate.



looks like 4% on the new iSA rate on monday too!
I'd really appreciate it if one of the banks would offer a decent interest rate on more than a couple of grand (and usually fixed for just 12 months) - I've got regular savers here, current accounts there, credit cards for stoozing...

Alas, I'll probably still sign up for this because, hey, free money.
akajay07

I'd really appreciate it if one of the banks would offer a decent … I'd really appreciate it if one of the banks would offer a decent interest rate on more than a couple of grand (and usually fixed for just 12 months) - I've got regular savers here, current accounts there, credit cards for stoozing... Alas, I'll probably still sign up for this because, hey, free money.



Unfortunately I think that's now a thing of the past. I'm the same, got 7 bank accounts. Wanted to streamline everything but can't really.
spinks

Better to have a TSB current plus account


Not if you have more money than they pay interest on.
Can you transfer in previous ISA balance too ?
Will4long

Can you transfer in previous ISA balance too ?


Their website says "You can combine any previously held ISAs into one account" so I am guessing so
Good deal in these times of low rates. I'll probably divert some money currently in P2P investments into it over the year
reallybigmisterbig

...These 4% accounts add up................


Precisely. % at Santa, bit at TSB, bit more at 1st Direct and bit here at Ford. I'll get this sorted in the coming days...
1.8ish percent if you had invested the lump sum from day one.

The returns on savings are so poor, I question my own stoozing these days, hardly seems worth it with CPI and inflation on the rise. I have more debt on cc than I do on my mortgage. (also biblically low) The property game will be my next venture.
Edited by: "Grohller" 19th May 2017
TesaoGostoso

First Direct is not an ISA so there is tax on the savings



​only if you make more than £1000 a year in interest.
smegal

only if you make more than £1000 a year in interest.


This explains.......The first £1,000 of savings interest earned in a year is tax-free. If you are a higher rate taxpayer (40%), then your allowance is £500, and 45% taxpayers have no savings allowance at all. Might help someone
I'm sure for £250 a month at a regular saving 4% would get you roughly £65 in interest not £55 if my calculations are correct, or are am I missing something?
CHUNGHO1

I'm sure for £250 a month at a regular saving 4% would get you roughly … I'm sure for £250 a month at a regular saving 4% would get you roughly £65 in interest not £55 if my calculations are correct, or are am I missing something?


The simple rough calculation is to work out the APR on the whole annual balance, then halve it. So, £250 a month is £3000 a year - 4% of that is £120. Half of that is £60, which is roughly what it'll pay.
manicmidlander

There are better options out there depending who you bank with. First … There are better options out there depending who you bank with. First Direct, HSBC, Nationwide, Marks and Spencer. However, If you already have those this is fine. I put all my normal spending on a 0% purchase card and then put the "real money" I would have spent in a regular saver ( or several of them). After 12 months I take the "real money" out at the maturity of the regular saver and close or transfer the credit card balance to a new 0% card and then continue. It's easy money if you are disciplined about it. This "stoozing" makes me about £400 a year in tax free interest which isn't a massive amount but it's free money really.


I do exactly the same. Fairly easy when you get into the swing of it. Even better if the 0% card has nectar points or something similar then it's a double win.
can't seem to find the 4% regular saver... am I having a blond moment or it's gone?
jimcat

can't seem to find the 4% regular saver... am I having a blond moment or … can't seem to find the 4% regular saver... am I having a blond moment or it's gone?


It's going to be launched on Monday.
Looks like a good deal if you've already got your own banks version of this but have more to save monthly. Heat from me, especially as it's stand alone
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