Principality Xmas 2021 Regular Saver opens today

1.50% fixed on max £125pm for 12 months. Estimated interest £12.19

Not for me as the rewards are pennies extra over my current portfolio, however, posted as may be of interest to some.

Opens to anyone from 12 November 2020, so the apply button may work post 9am.

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It’s a good share, but is anyone prepared to lock away that cash for £12.19? Less than a :pizza:

The best I’ve seen is First Direct that’s up to £300 each month at 2.75%

But even that would get you ~£53.63, better than nothing I guess. But I’d rather invest that £300 instead personally, no guarantee on return but easy to beat 2.75% imo

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I have their regular “regular saver” at the moment, which is limited to £250 per month over 12 months.

They make sense if you are saving for a specific purpose, but I agree the money is better invested than held as cash, particularly if you don’t need to the money in the short term.

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Oh definitely I mean no one should be investing anything they need short term or would adversely affect them if they lost it all. Savings you have the guarantee of a specific return with no risk.

Out of curiosity picking basic FAANG with £250 a month, it’s predicting £480 profit for 1yr (based on historic performance).

Could these all be down in a year? Unlikely but nothing is guaranteed. Essentially anything possible in these crazy times.

I just throw my Christmas savings into a specific Credit Union account which is made for Christmas, can’t touch it until 1st November and last withdrawal date is Christmas Eve. It’s topped up automatically through my wages so I don’t even really notice the payments vanishing from my pay every month.

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I did it that way in the nineties, before internet banking came to the fore.

If it’s taken at source, then you don’t miss it as it does not form part of the take home pay from which you form your budget.

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I think the clue is in the title of the product.

It is for those who wish to put funds aside for Xmas 2021.

Investments would not work for that purpose.

I have First Direct and HSBC regular savers. Whether they will still be around for renewing in 2021, or will follow M&S Bank, I don’t know yet.

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Yeah it’s the not seeing it bit that helps, pretty much just set and forget, always good to support a local (ish) business, well it’s 72 miles away but don’t need a branch visit to do anything at least

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Sure but you obviously don’t need to pick something called Christmas savings to be saving specifically for Christmas.

Plenty of fixed 1yr products to pick like the First Direct where you could potentially get about £50 depending on deposit.

It’s like those Park Christmas savings which just hide the temptation to spend it. They have a purpose for some people.

You can definitely be investing for a year. There’s no specific timescale, just the longer it’s in the more bumps are ironed out. Could it beat £12.19 putting £125 in each month for just a year, I would say it’s a strong yes with blue chip stocks or ETFs like IITU. But not guaranteed so not good for everyone where it could be -£12.19 return or worse.

I’m surprised Principality are opening products whilst most are shutting them down.

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Entirely possible, which is why I wouldn’t limit myself to just FAANG stocks alone and would instead go for a broader index fund.

However, £40 per month on a £3000 investment is hopeful, but heavily dependent upon central banks issuing stimulus and QE. If that stops for any reason, the market might correct to something closer to the real economy --which it is anything but at the moment.

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