Current account savings

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Mr_Curious
Mr_Curious Posts: 118 Forumite
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in Budgeting & bank accounts
Hi Guys,

Just after some thought about how best to keep a lump sum ticking over. I will be receiving approx £20k very shortly and would like to put it to work with as little hassle as possible - not loads of DD's etc. Funding requirements not an issue as happy to cycle money through accounts.

I already have 2x Tesco current accounts, 1x TSB, 1x Nationwide however this has just been downgraded, 1x HSBC (I could set up a regular saver here), 1x FD with the reg saver already being used.

My initial thoughts are to open a Santander 123 along with the reg saver. Use the 123 to feed HSBC reg saver. Reapply for the 5% at Nationwide.

In terms of the time frame this could be anything from months to over a year so the reg savers may not be ideal. I am a basic rate tax payer if that is relevant.

Any thoughts/suggestions welcome,

Mr_C

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  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    Nationwide have tightened their 5% offer terms recently. So it's doubtful you'll get that at 5% again.

    However, since you have the option of various regular savers, it's probably easiest to park the cash in the Santander 123 account, and dripfeed it into Santander, HSBC and Nationwide regular savers, each month.
  • soulsaver
    soulsaver Posts: 5,976 Forumite
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    Don't you need 2 DDs set up on Santander? And because of the fixed £5pm fee, their effective interest rate on £20K is 1.2% decreasing as the balance decreases to fill your RSs.

    Birmingham Midshires no dds req'd 1.35% available currently for 12 months?
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  • RG2015
    RG2015 Posts: 5,906 Forumite
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    The Santander 123 is good and only requires 2 active DDs not 2 DDs every month and the 5% regular saver is a great benefit. Don't forget though that the £5 monthly fee effectively reduces the interest rate on £20,000 to 1.19%
  • Mr_Curious
    Mr_Curious Posts: 118 Forumite
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    Thank you for your input Guys. I'm not adverse to a couple of DD's being swapped around but not to the extend of 3-4 new accounts all requiring 2 each. I am aware of the £5 fee. It just seems like a convenient home for a big sum to be parked but at the same time I don't want to be missing anything obvious.

    Thanks for the pointer Soulsaver, I'll take a look.

    Mr_C
  • badger09
    badger09 Posts: 11,211 Forumite
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    Mr_Curious wrote: »
    Thank you for your input Guys. I'm not adverse to a couple of DD's being swapped around but not to the extend of 3-4 new accounts all requiring 2 each. I am aware of the £5 fee. It just seems like a convenient home for a big sum to be parked but at the same time I don't want to be missing anything obvious.

    Thanks for the pointer Soulsaver, I'll take a look.

    Mr_C

    It is convenient, and you could certainly feed regular savers from it.

    Although it only needs 2 active DDs (ie not ones which pay out every month), it would make sense to use any utility bills you have so the cashback mitigates the monthly £5 fee.;)
  • badger09
    badger09 Posts: 11,211 Forumite
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    Details in 1st post here

    http://forums.moneysavingexpert.com/showthread.php?t=5727599
  • TheShape
    TheShape Posts: 1,779 Forumite
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    Wouldn't be too much hassle to open a Club Lloyd's current account (2DDs and £1500 pm funding) for 2% on £5000 plus the Club Lloyd's Monthly Saver (£400pm @ 3% if opened after December 1st). Plus some free Cinema tickets/Magazine Subscription etc. Open the HSBC Regular Saver (5% or 3%), a new Flexclusive Regular Saver @ 5% and a TSB Monthly Saver @ 2%.

    If you open BOS and Halifax current accounts their Regular Savers will pay 2.5% if opened after 1st Dec. You can then open Virgin money Regular Savers @ 2.25% currently as new issues become available.

    Minimal messing about with DDs and you could always add a couple to the BOS account (+Vantage) for another 2% on £5000.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    Tesco's internet saver is now 1.35%. (must upgrade my two accounts)
  • RG2015
    RG2015 Posts: 5,906 Forumite
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    teddysmum wrote: »
    Tesco's internet saver is now 1.35%. (must upgrade my two accounts)
    It doesn't take effect until 1st December and I don't believe that you need to update if your bonus rate is already at 0.80%
  • badger09
    badger09 Posts: 11,211 Forumite
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    badger09 wrote: »
    Details in 1st post here

    http://forums.moneysavingexpert.com/showthread.php?t=5727599

    Just a minor rant...

    In between my posts currently:cool: numbered 6 & 7, someone posted a question about when the T&C for Nationwide Flexdirect changed, and when the new ones take effect. My post 7 was in reply.

    For some unknown reason, they have since deleted their post.

    I really wish people wouldn't do that:mad:.
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