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  • FIRST POST
    • gazza85
    • By gazza85 15th Mar 17, 9:21 PM
    • 3Posts
    • 0Thanks
    gazza85
    Advice for making my savings work harder!
    • #1
    • 15th Mar 17, 9:21 PM
    Advice for making my savings work harder! 15th Mar 17 at 9:21 PM
    Hi, Thank you for taking time to read my post..

    Before late 2015 I was always a lazy saver, putting small amounts of money into the same accounts for years. I started to look a bit harder and opened a Help to Buy ISA with £1200 and paid in £200 a month ever since. I now want to look at making savings I still have sitting idle in poor interest accounts. Any Tips/Advice on my proposed plan of attack below would be greatly appreciated.

    Accounts Open March 2017

    Cash ISA - £6100 (0.2%)
    Help-to-buy - £4290 (3.5%)
    easy Access - £1000 (0.1%)

    My Plan

    Open First Direct 1st Account (Receive £125 Bonus)

    Open First Direct Regular Saver and pay in £300 a month from wages, maybe some months I may have to use some funds from lower interest account (5%)

    Continue to pay £200 a month into my H2B ISA (I predict the rate will fall again to 3% maybe 2.5%)

    Open a Ratesetter account and Transfer £1000 from easy access saver, stay for a year to receive £100 bonus and attempt to get a constant rate of 3.5% or lower if the market rate lowers.

    HOPEFULLY open two Tesco Current Accounts and Deposit £3000 in each from my ISA.
    (only back up plan I have for this is either a post office 1.0% easy access account, or transferring it all into a 0.96% Post Office Online ISA)

    I want to keep at least half in an account where I can access the money if I need it.

    any input regarding the above would be great..

    Not 100% sold on rate setter...

    Thanks again for taking time to read this
Page 1
    • Tom Brine
    • By Tom Brine 16th Mar 17, 10:04 AM
    • 42 Posts
    • 10 Thanks
    Tom Brine
    • #2
    • 16th Mar 17, 10:04 AM
    • #2
    • 16th Mar 17, 10:04 AM
    I would look to close the CASH ISA and move that money into higher interest accounts. Many current accounts offer 3 to 5% interest which you could fill up easily.


    Nationwide Flex Direct will pay 5% interest on balances up to £2500 and you can open their 5% regular saver also. This allows monthly payments of up to £500 which you could drip feed money from the current account into. Current accounts are also "easy access"


    Are you saving to buy your first house. It may be worth transferring the help to buy isa to a Lifetime isa in April if so as you will receive much more of a top up towards your first home.
    • gazza85
    • By gazza85 16th Mar 17, 11:13 AM
    • 3 Posts
    • 0 Thanks
    gazza85
    • #3
    • 16th Mar 17, 11:13 AM
    • #3
    • 16th Mar 17, 11:13 AM
    Hi Tom, Thanks for your reply...

    I did look at the Nationwide account but I thought the option I mentioned worked out slightly better.

    Switching to First Direct gets me £125 (Same as I'd get on the £2500 over a year @ 5%) which I can then put into another account to earn a small amount on top. This also frees up £2500 I can earn interest on elsewhere. With First directs linked regular saver I can deposit £300 a month rather than the £250 with nationwide.

    My plan was to Transfer the £6000 across two Tesco Current Accounts earning 3% on each account.. But when I went back to apply two days later they had suspended applications!! I plan to wait and see what they offer when applications open again, even if they drop the % I think this could still be my best option. Unless there's another account that doesn't require me to Switch?

    Have you ever used Ratesetter? Im thinking of dipping my toe into the water with £1,000 for a year just to get the £100 bonus.. My main worry is that in the terms it states the money has to be lent back out within 30days to qualify. The cynic in me feels that they prioritise lending out money that wouldnt qualify for this, so risk having the £1000 locked away not earning interest for the full year.

    Im waiting to see exactly what is offered by the Lifetime ISAs. It's not 100% certain I will be looking to buy, The Help to Buy ISA is with Halifax and Offered 4% orginially(Currently 3.5%). This seemed like a no brainer to me as It didnt restrict me to using the money towards a house, had a good interest rate, and if I did decide to buy I would get the 25% bonus too. From what I understand the Lifetime ISA would restrict me to only using the money towards a House or Retirement?
    Last edited by gazza85; 16-03-2017 at 11:21 AM.
    • weenie15
    • By weenie15 16th Mar 17, 11:18 AM
    • 57 Posts
    • 44 Thanks
    weenie15
    • #4
    • 16th Mar 17, 11:18 AM
    • #4
    • 16th Mar 17, 11:18 AM

    Have you ever used Ratesetter? Im thinking of dipping my toe into the water with £1,000 for a year just to get the £100 bonus.. My main worry is that in the terms it states the money has to be lent back out within 30days to qualify. The cynic in me feels that they prioritise lending out money that wouldnt qualify for this, so risk having the £1000 locked away not earning interest for the full year.
    Originally posted by gazza85
    I've been with Ratesetter for nearly 3 years and have found them to be pretty quick to match loans, ie 24/48 hours.
    • gazza85
    • By gazza85 16th Mar 17, 11:27 AM
    • 3 Posts
    • 0 Thanks
    gazza85
    • #5
    • 16th Mar 17, 11:27 AM
    • #5
    • 16th Mar 17, 11:27 AM
    I've been with Ratesetter for nearly 3 years and have found them to be pretty quick to match loans, ie 24/48 hours.
    Originally posted by weenie15
    Do you use the 1 year account or Rolling account? What interest rate do you think I'd be able to achieve? I've read its a good idea to lower it slight from what the market rate is so that its lent out quickly.

    My plan was to go into a 1 month rolling account, set the interest low initially to make sure its loaned quickly and qualify for the £100. Then after the 1st month increase it to the going rate.
    Last edited by gazza85; 16-03-2017 at 12:55 PM.
    • weenie15
    • By weenie15 17th Mar 17, 12:28 AM
    • 57 Posts
    • 44 Thanks
    weenie15
    • #6
    • 17th Mar 17, 12:28 AM
    • #6
    • 17th Mar 17, 12:28 AM
    Do you use the 1 year account or Rolling account? What interest rate do you think I'd be able to achieve? I've read its a good idea to lower it slight from what the market rate is so that its lent out quickly.

    My plan was to go into a 1 month rolling account, set the interest low initially to make sure its loaned quickly and qualify for the £100. Then after the 1st month increase it to the going rate.
    Originally posted by gazza85
    Ratesetter's rates as at today are showing as:

    1 month Rolling - 3%
    1 Year - 3.9%
    5 Year - 5.7%

    These do change periodically. I've got most of my cash in 3 and 5 year, although they no longer have 3 year on offer. More recently, I've been putting the repayments/interest in 1 year.

    Your idea of the rolling account sounds good, so you can try it out and see how it works etc.

    I've never tried setting a lower interest rate as I don't seem to have a problem getting loans matched quickly but I guess it won't do any harm to do so, to ensure there are no delays with matching.
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