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
    • linuxpenguins
    • By linuxpenguins 18th Jun 17, 11:33 AM
    • 140Posts
    • 6Thanks
    linuxpenguins
    Savings Advice for my Millions..
    • #1
    • 18th Jun 17, 11:33 AM
    Savings Advice for my Millions.. 18th Jun 17 at 11:33 AM
    ..well, not quite!

    Okay.. I am saving as follows;

    £500 p/m into Flexclusive @ 5.00%
    £300 p/m into First Direct Regular Saver @ 5.00%

    £2,500 in FlexDirect

    I have £100 spare to save each month.. where should I put this? Happy to open another account if need be. I know it wont generate much interest but better than receiving nothing at all! - It will need to be easily accessible too.

    Thanks
Page 2
    • linuxpenguins
    • By linuxpenguins 22nd Jun 17, 6:21 PM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    Actually.. do Vanguard have an app?

    Hah! I don't know what to do with this £100

    Open a Vanguard and go 80/20?!
    Save in TSB?

    *Scratches head*
    • TheShape
    • By TheShape 22nd Jun 17, 6:51 PM
    • 1,020 Posts
    • 773 Thanks
    TheShape
    A switch to TSB would be the option I'd take for now. Getting Switching bonuses is a nice quick way of building a bigger pot of cash. I also use the debit card for £100 of spending each month to get the £5 monthly cashback that they previously offered. The current £5 reward for the Direct Debits is a good bonus.

    I opened one extra Flex account with Nationwide and switched it (can't remember where to), but decided against another switch too quickly. An RBS account was straightforward to set up as a sacrificial account for switching.
    • linuxpenguins
    • By linuxpenguins 22nd Jun 17, 7:02 PM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    A switch to TSB would be the option I'd take for now. Getting Switching bonuses is a nice quick way of building a bigger pot of cash. I also use the debit card for £100 of spending each month to get the £5 monthly cashback that they previously offered. The current £5 reward for the Direct Debits is a good bonus.

    I opened one extra Flex account with Nationwide and switched it (can't remember where to), but decided against another switch too quickly. An RBS account was straightforward to set up as a sacrificial account for switching.
    Originally posted by TheShape
    I only opened a Flexiaccount about three months back and switched it last month to FD.

    I suppose I may be best opening an RBS account then and once open, switching to TSB? Do you think this would work?

    I've already got a Mortgage and don't require any credit cards etc so not overly concerned about opening accounts too soon? I don't even need overdraft...
    • TheShape
    • By TheShape 22nd Jun 17, 7:13 PM
    • 1,020 Posts
    • 773 Thanks
    TheShape
    I suppose I may be best opening an RBS account then and once open, switching to TSB? Do you think this would work?

    I've already got a Mortgage and don't require any credit cards etc so not overly concerned about opening accounts too soon? I don't even need overdraft...
    Originally posted by linuxpenguins
    Don't see why it wouldn't work, you just need to ensure you meet the criteria for the switching incentive and/or any requirements to receive interest, cashback for Direct Debits etc. Have a good read of the t&cs.

    Opening lots of current accounts hasn't prevented me from getting Credit Cards. There is no need to apply for overdrafts with your new current accounts if you only intend to use them like savings accounts. I wouldn't open lots of current accounts if I was likely to apply for a mortgage soon but like yourself I already have one.
    • linuxpenguins
    • By linuxpenguins 23rd Jun 17, 10:30 AM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    Well, I opened a RBS account as a sacrificial account and the TSB account.

    I'll move that across and hopefully get the £130 switching bonus. As for active direct debits for the £5 a month I believe they have to actually pay out per month? I guess I will just setup £1 to Health Lottery and £2 to normal lottery. Free lottery tickets, right? Leaves £2 which I may as well use to make the Lottery two draws a month?

    Thanks for the guidance all! Appreciated
    • atush
    • By atush 23rd Jun 17, 11:35 AM
    • 16,242 Posts
    • 9,912 Thanks
    atush
    Mortgage overpayments will be next approach once £10k built up. Currently owe £66k at a rate if 2.09%
    Again, i'd look at a pension instead. You should do better than 2.09%
    • linuxpenguins
    • By linuxpenguins 23rd Jun 17, 2:42 PM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    I have a pension at the moment.

    It has the grand total of £6k in there! Impressive hey?!

    I quite like the thought of having no mortgage, so overpaying that was quite appealing. I would then focus on a pension once this was paid off.

    I have a work pension (stakeholder, group) as far as I know it isn't nest nor now pensions. Would work contribute to my own pension should I have one elsewhere? The work one is with Friends Provident(Aviva now I guess?)

    Thanks
    • jimjames
    • By jimjames 23rd Jun 17, 6:34 PM
    • 12,016 Posts
    • 10,455 Thanks
    jimjames
    I quite like the thought of having no mortgage, so overpaying that was quite appealing. I would then focus on a pension once this was paid off.
    Originally posted by linuxpenguins
    It might "feel" nice but problem is the differential in rates vs returns. Over the long term, like a mortgage term, you're losing a big chunk of money by paying off mortgage rather than investing.

    Assuming 3% mortgage and 7% investment return, after 10 years you'd be 25% better off if you'd invested in pension rather than paid off mortgage
    Last edited by jimjames; 23-06-2017 at 6:36 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • linuxpenguins
    • By linuxpenguins 23rd Jun 17, 8:42 PM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    Interesting!

    So where would you suggest I invest?
    • linuxpenguins
    • By linuxpenguins 24th Jun 17, 2:40 PM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    If I have £500pm going into flexclusive saver @5pc

    £300pm going into FD Saver at 5pc

    £2500 in flexdirect @5pc

    And I only have £100pm remaining to spare.. there isn't anyway I can max this more is there? If I have a tsb account.. ideally need £1500 lump sum to get 3pc else what I save isn't going to be much in interest I calculate?
    • TheShape
    • By TheShape 24th Jun 17, 9:45 PM
    • 1,020 Posts
    • 773 Thanks
    TheShape
    Don't worry too much about the total amount of interest you're earning (you can't earn interest on money you don't have) but do try to earn the best rate on what you have to save.

    If you're prepared to put a bit of work into managing multiple accounts you could try doing what I found has worked well to maximise my savings:

    - Get as many switching bonuses as you can. Getting perhaps £500 or more for switching a few accounts is a big boost to your savings pot. You can then start earning interest on that money. Keep the accounts that have decent perks such as paying interest, regular savers, reward payments etc.

    - Make use of the best paying accounts that you can open. The 5% regular savers are especially worth getting as well as the 3% accounts such as TSB. Don't worry too much if you can't immediately fill an account, just earn as much interest as you can on what you have.

    - Plan ahead for rate changes or regular savers maturing so you don't end up with money not earning interest.
    • linuxpenguins
    • By linuxpenguins 25th Jun 17, 8:36 AM
    • 140 Posts
    • 6 Thanks
    linuxpenguins
    Thanks TheShape

    I opened an RBS account to move to TSB in just hoping I have enough time to switch across. I think that'll be the last of my switches though as I will then hold nationwide, first direct and tsb.

    The deadline is 14th July I believe and I need two active direct debits on my RBS account (which I put both credit cards and PayPal on so I hope they show up when I can eventually login to online banking once I have my code etc)

    Shame I don't have the £1500 to sit in TSB! But I will probably move to direct debits that actually do pay out for the £5 a month. 20 debits on my card I feel is actually quite a lot so doubt I'd reach that!
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

2,060Posts Today

6,526Users online

Martin's Twitter
  • RT @thismorning: 'Sometimes the best gift is releasing somebody else from the obligation of having to give to you' says @MartinSLewis. Do y?

  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Follow Martin