Regular Saver Ending

Outsider_83 · 20 February 2018 at 2:41PM

Hi,

My regular saver with Nationwide at 5% is ending and I have £4k in the pot. I want to continue to grow my savings, what are my best options from here?

MallyGirl · 20 February 2018 at 2:52PM

you can start a new reg saver (only £250 pcm now) and feed some of it back in but as to the rest - have you got other bank accounts offering interest?

Outsider_83 · 20 February 2018 at 4:06PM

I have a separate Regular saver with First Direct which is not too far from expiring and I also have a current account with both Nationwide and Halifax.

chockydavid1983 · 20 February 2018 at 5:36PM

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts

ValiantSon · 20 February 2018 at 5:58PM

Outsider_83 wrote: »

I have a separate Regular saver with First Direct which is not too far from expiring and I also have a current account with both Nationwide and Halifax.

Open new Nationwide and First Direct regular savers. Hold the balance waiting to be deployed in the regular savers in a current account paying decent interest. Which current account is best depends on how much money you will have to sit in it.

Cotta · 21 February 2018 at 12:54AM

ValiantSon wrote: »

Open new Nationwide and First Direct regular savers. Hold the balance waiting to be deployed in the regular savers in a current account paying decent interest. Which current account is best depends on how much money you will have to sit in it.

That's a painful process which only takes care of £500 per month.

ValiantSon · 21 February 2018 at 1:04AM

Cotta wrote: »

That's a painful process which only takes care of £500 per month.

I'm assuming the first part of your comment refers to me using the phrase, "to sit in it." The second part is rather more puzzling. What I have suggested doesn't "only take care" of £500 p/m. For a start the combined deposit would actually be £550 p/m, and secondly I have already said to hold the bulk of the balance in an - potentially more than one - interest paying current account (from which the regular savers would be funded). This would ensure interest was being earned on all of the money. How exactly does this, "only take care" of £500 p/m?

Outsider_83 · 21 February 2018 at 12:52PM

Ok my plan is as follows:

1. Use my Nationwide Current account paying 1% as my holding source, the amount of £4000 will increase as my salaries are paid.

2. Setup three direct debits going to three regular savers:

- £300 per month going to First direct as 5%.
- £250 per month going to Nationwide as 5%.
- £250 per month going to HSBC as 5%.

That will look after around £800 per month, I don't think I can do any better than this.

ColdIron · 21 February 2018 at 12:56PM

Outsider_83 wrote: »

2. Setup three direct debits going to three regular savers:

That'll be 3 Standing Orders

ValiantSon · 21 February 2018 at 2:26PM

Outsider_83 wrote: »

Ok my plan is as follows:

1. Use my Nationwide Current account paying 1% as my holding source, the amount of £4000 will increase as my salaries are paid.

2. Setup three direct debits going to three regular savers:

- £300 per month going to First direct as 5%.
- £250 per month going to Nationwide as 5%.
- £250 per month going to HSBC as 5%.

That will look after around £800 per month, I don't think I can do any better than this.

That will work (with standing orders), but you could do better on the interest rate for the "holding" account, e.g. Tesco will pay you 3% on up to £3000; Club Lloyds or Bank of Scotland Vantage will pay you 2% on up to £5000; or TSB will pay you 3% on up to £1500. All of these are likely to pay more on your money as it cycles through the "holding" account.

Details of current accounts here: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts#interest

Regular Saver Ending

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free