Advice required

FunLovinCriminal · 23 February 2015 at 10:37PM

So the meeting was today.
The only option for me, and my family, is to take the lower wage and a lump sum pf £6419 minus tax and NI.
Now I need to find a home for it.
I have moved £1000 into my TSB account, I can't see my OH opening up an account, she cannot be bothered with these things.
The Nationwide Flexaccount looks attractive - but if I read it right do I need to pay £10 per month to have this account?
Anywhere else I should consider?
FLC

jimjames · 23 February 2015 at 10:46PM

The Nationwide account paying 5% doesn't charge any fees.

You can also open a joint TSB account. Between those 3 accounts you'll have a home for £6500 at 5%.

xylophone · 24 February 2015 at 12:37AM

Nationwide Flexdirect Account (for one year), TSB Classic Plus, BOS Vantage.

Cycle the necessary money round once a month by faster payment-move the interest to BOS. Vantage.

At the end of the year, switch NW to an account with a switching bonus and carry on....

FunLovinCriminal · 24 February 2015 at 11:55AM

Thanks for everyone's help. Very new to this.

Would the £6419 be subject to 40% tax, as I'm getting such a large amount in a new tax year?

atush · 24 February 2015 at 12:19PM

that would depend on your current salary? But if only 20K, that would only bring you to to 26K so no HRT?

Do you have a pension with this company? The OH?

How easy will it be for you to get another job? I'd be looking ASAP.

And as the OH goes back to work, have her save every penny she earns over SMP. Open an acct for her, just get her to sign it.

And delay baby 2 until you start- and are happy with- your new job. Not a good time to procreate if income is uncertain?

FunLovinCriminal · 2 March 2015 at 10:18PM

So, the good news - the job is safe.

I'm going to drop down to a lower grade, and take £6419 lump sum (which is the difference between the higher grade and my new rate for two years).

After tax I reckon its gonne be a little over £5k

I've opened a TSB 5% savings account, and going to do a Santander 123 account for the rest.

I've got £7k in a ISA on 1.30% (which is less that I previously thought)

So, basically I've got £2k in my TSB account, and will be putting the £5k (ISA) and £5k (pay off) in the Santander account.

Any more advice would help alot - but thanks for everyones input.

FLC

jimjames · 2 March 2015 at 10:31PM

If you can handle setting up the transfers then you'd get more interest with more TSB accounts.

1 each and 1 joint gives you £6000 at 5%. 1 each of Nationwide at 5% gives you another £5000.

Total £11000 at 5%, way more than your ISA even after tax.

xylophone · 2 March 2015 at 10:35PM

Don't forget to pay in the minimum amounts required and to set up the DDs for Santander.

see post 7.

FunLovinCriminal · 2 March 2015 at 10:54PM

Thanks jimjames

We have a 9month old dd, and I'm not sure if I have the time involved to move the money around - I realise its a few extra £££ - but we have little spare time to shuffle money about.

Xylophone - what is the minimum payment I need to pay in?

I was going to move a couple of DD's across there, and use the card for fuel to earn some cashback to balance out the £2 fee.

FLC

xylophone · 3 March 2015 at 12:09AM

Xylophone - what is the minimum payment I need to pay in?

£500 a month for both TSB and Santander - you can pay in and out on the same day with faster payments.

have you set TSB for paperless statements and corresspondence?

Be careful with Santander - it is the account month rather than calendar month.

http://forums.moneysavingexpert.com/showthread.php?t=4441885

Advice required

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