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  • FIRST POST
    • Zola.
    • By Zola. 13th Nov 17, 11:52 AM
    • 1,113Posts
    • 433Thanks
    Zola.
    Best account for up to 1k?
    • #1
    • 13th Nov 17, 11:52 AM
    Best account for up to 1k? 13th Nov 17 at 11:52 AM
    I have a separate 'e saver' account on Santander that I have recently started using for a mortgage over-payment fund.

    The T&C's on our mortgage says any over payments need to be over £1000. I setup a standing over for £400 to go to this every month. The idea is that it is siphoned off purely for over-payments. Then every 3 months I will empty it to send the over-payment.

    The interest rate however is dreadful on the e saver. What would be a good option to maximise interest for what I need?
    Last edited by Zola.; 13-11-2017 at 11:57 AM.
Page 1
    • binaryuniverse
    • By binaryuniverse 13th Nov 17, 11:59 AM
    • 468 Posts
    • 249 Thanks
    binaryuniverse
    • #2
    • 13th Nov 17, 11:59 AM
    • #2
    • 13th Nov 17, 11:59 AM
    Nationwide offer 5% on balances of up to £2500.

    However, as you'd probably want this as an ongoing thing (plus that NW offer is best used when you have £2500 to stash for 12 months), I'd suggest a TSB Classic Plus account. It currently has an interest rate of 3% on up to £1500, requires no direct debits. Just an ongoing monthly payment of at least £500. A bit over the £400 you want to put in, but I don't think any other account offers a lower required deposit than that.
    • Kim_13
    • By Kim_13 13th Nov 17, 12:09 PM
    • 1,360 Posts
    • 1,717 Thanks
    Kim_13
    • #3
    • 13th Nov 17, 12:09 PM
    • #3
    • 13th Nov 17, 12:09 PM
    I have a separate 'e saver' account on Santander that I have recently started using for a mortgage over-payment fund.

    The T&C's on our mortgage says any over payments need to be over £1000. I setup a standing over for £400 to go to this every month. The idea is that it is siphoned off purely for over-payments. Then every 3 months I will empty it to send the over-payment.

    The interest rate however is dreadful on the e saver. What would be a good option to maximise interest for what I need?
    Originally posted by Zola.
    You might find this article useful: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts
    Sealed Pot 11 #520 ~ /£100
    VSP 2017 #9 ~ £108.83/£250.00
    CCCC 2017 #1 ~ £200.95/£120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • 18cc
    • By 18cc 13th Nov 17, 2:46 PM
    • 33 Posts
    • 22 Thanks
    18cc
    • #4
    • 13th Nov 17, 2:46 PM
    • #4
    • 13th Nov 17, 2:46 PM
    or you could work out exactly how much interest you are missing out on and come to a conclusion that way..
    • Kernel Sanders
    • By Kernel Sanders 13th Nov 17, 9:43 PM
    • 3,186 Posts
    • 1,318 Thanks
    Kernel Sanders
    • #5
    • 13th Nov 17, 9:43 PM
    • #5
    • 13th Nov 17, 9:43 PM
    Nationwide offer 5% on balances of up to £2500.

    However, as you'd probably want this as an ongoing thing (plus that NW offer is best used when you have £2500 to stash for 12 months),
    Originally posted by binaryuniverse
    This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.
    • datlex
    • By datlex 13th Nov 17, 10:03 PM
    • 1,414 Posts
    • 1,210 Thanks
    datlex
    • #6
    • 13th Nov 17, 10:03 PM
    • #6
    • 13th Nov 17, 10:03 PM
    Barclays Reward account is £800 per month requirement.
    • Zola.
    • By Zola. 14th Nov 17, 11:54 AM
    • 1,113 Posts
    • 433 Thanks
    Zola.
    • #7
    • 14th Nov 17, 11:54 AM
    • #7
    • 14th Nov 17, 11:54 AM
    This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.
    Originally posted by Kernel Sanders

    3.09% fixed for another 2.5 years, (was a 5 year originally).
    • binaryuniverse
    • By binaryuniverse 14th Nov 17, 12:53 PM
    • 468 Posts
    • 249 Thanks
    binaryuniverse
    • #8
    • 14th Nov 17, 12:53 PM
    • #8
    • 14th Nov 17, 12:53 PM
    This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.
    Originally posted by Kernel Sanders
    Sorry, but I can not agree with that. I don't feel that using up that one time offer of 5%, for 12 months is good, if they're only going to have a small amount (up to £1200, going by the OP, before they make the overpayment) in there. It's a waste of a good deal. You need to maximise it as fully as possible, with a full £2500 in there to get the most interest. The TSB account gives a decent rate of interest, only requiring a slightly higher payment than they currently want (less juggling about) and is indefinite (as far as we know. Rates can, and do, change at any time).
    • Kernel Sanders
    • By Kernel Sanders 14th Nov 17, 10:29 PM
    • 3,186 Posts
    • 1,318 Thanks
    Kernel Sanders
    • #9
    • 14th Nov 17, 10:29 PM
    • #9
    • 14th Nov 17, 10:29 PM
    Sorry, but I can not agree with that. I don't feel that using up that one time offer of 5%, for 12 months is good, if they're only going to have a small amount (up to £1200, going by the OP, before they make the overpayment) in there.
    Originally posted by binaryuniverse
    Well you don't know if it's still going to be there in a year do you, and even if it is then presumably the OP wouldn't have the savings to fund it, seeing as he thinks overpaying is prudent. This would confirm that it's not....
    3.09% fixed for another 2.5 years, (was a 5 year originally).
    Originally posted by Zola.
    Even at 20% tax it would be better to keep the money in the NWFD. You can also open the NW FlexSaver also paying 5%, so I wouldn't even start thinking about mortgage overpayments until 2019.
    Last edited by Kernel Sanders; 16-11-2017 at 8:23 PM.
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