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  • FIRST POST
    • pagenotfound2k
    • By pagenotfound2k 19th Jun 17, 9:41 AM
    • 37Posts
    • 14Thanks
    pagenotfound2k
    Which account for savings?
    • #1
    • 19th Jun 17, 9:41 AM
    Which account for savings? 19th Jun 17 at 9:41 AM
    I have about £3000 in a Tesco 3% current account, all it's doing is sitting there gathering interest. No direct debits are coming out of it.

    What I would like to do is open another decent rate account with no ties to it, such as direct debits or minimum pay ins. These seem very hard to find now. I would open another Tesco account if it weren't for the now imposed requirements.

    The simple purpose of having another account is so I have somewhere to pay the interest from the Tesco account and maximise any savings I can from it.

    I am half wondering if I should just open some bank account and get the cashback and not worry about anything else. But these also seem to have requirements imposed upon them - it's not that I don't want them, but it's a case of not being able to satisfy them as other bank accounts need them.

    I'd appreciate any help or pointers. I'm half wondering if I'm on a hiding to nothing here, but shy kids get nothing.
Page 1
    • YorkshireBoy
    • By YorkshireBoy 19th Jun 17, 10:06 AM
    • 29,316 Posts
    • 17,091 Thanks
    YorkshireBoy
    • #2
    • 19th Jun 17, 10:06 AM
    • #2
    • 19th Jun 17, 10:06 AM
    Some thoughts...

    Why are you settling for 3% AER when you could get nearly twice as much with 5% AER at Nationwide (£2.5K in a FlexDirect and £500 in a Flexclusive regular saver?

    Switching the Tesco account to Nationwide FlexDirect via their refer-a-friend promotion, after first finding 2 DDs, would get you a £100 switching incentive.

    You're scratting around for somewhere to put ~£7.50 a month when you really should be concentrating on switching incentives. For example, £7.50 a month in another 3% AER account would make £1.46 in interest over a year. Simply putting this in a Tesco savings account paying c.1% would make 46p...so all you've lost is a quid! Compare that with the £858 you could make over the same period by finding a way to get some DDs and taking the 5 current account switching incentives currently available.

    Make sense?
    • pagenotfound2k
    • By pagenotfound2k 19th Jun 17, 10:43 AM
    • 37 Posts
    • 14 Thanks
    pagenotfound2k
    • #3
    • 19th Jun 17, 10:43 AM
    • #3
    • 19th Jun 17, 10:43 AM
    Mostly because I will struggle to meet the minimum pay-in requirement of £1,000. I could manage the requirement of two direct debits though.
    • YorkshireBoy
    • By YorkshireBoy 19th Jun 17, 10:53 AM
    • 29,316 Posts
    • 17,091 Thanks
    YorkshireBoy
    • #4
    • 19th Jun 17, 10:53 AM
    • #4
    • 19th Jun 17, 10:53 AM
    Mostly because I will struggle to meet the minimum pay-in requirement of £1,000.
    Originally posted by pagenotfound2k
    How so? You have £3K available!
    • pagenotfound2k
    • By pagenotfound2k 19th Jun 17, 11:07 AM
    • 37 Posts
    • 14 Thanks
    pagenotfound2k
    • #5
    • 19th Jun 17, 11:07 AM
    • #5
    • 19th Jun 17, 11:07 AM
    Ah, so it's not a monthly pay-in? I feel so silly now.
    • xylophone
    • By xylophone 19th Jun 17, 11:09 AM
    • 22,370 Posts
    • 12,909 Thanks
    xylophone
    • #6
    • 19th Jun 17, 11:09 AM
    • #6
    • 19th Jun 17, 11:09 AM
    You could hang on to the Tesco account, open a Nationwide Flexdirect current Flexdirect and move £2500 from Tesco to it.

    You could then transfer £499 to the Flexdirect regular saver you would open.

    Then, each month you could transfer £1000 from Flexdirect current to Tesco current and back again to satisfy the FlexD pay in requirement.

    You could pay the interest arising on the FlexD current into the Regular saver.

    At the end of the 5% on FlexD current you could transfer £3000 back to Tesco.
    • binaryuniverse
    • By binaryuniverse 19th Jun 17, 8:16 PM
    • 343 Posts
    • 140 Thanks
    binaryuniverse
    • #7
    • 19th Jun 17, 8:16 PM
    • #7
    • 19th Jun 17, 8:16 PM
    I wouldn't go closing that Tesco account. It sounds like you're on the old terms, which means 3% on up to £3000 without needing DDs or a minimum monthly pay in. It's a pretty good deal in today's climate.

    I'd do one of these 2 things.

    1) Open a different bank account elsewhere (not Nationwide at this point, and preferably not with one that already has it's own switching bonus. You may want to use them later). Get 2 direct debits set up on it. If you really have none, then open a couple of Tesco savings accounts, and set up a £1 DD to each, paid from the new account. That'll satisfy that requirement. Then get a Nationwide account holding friend to recommend you for an account. Do the switch from that newly opened account and get a nice £100 for your troubles.

    2) Open the FlexDirect account directly. Less hassle but no free £100.


    In either case, after the account is opened, you can satisfy the monthly pay in by paying out £1000 from your Nationwide account to your Tesco account, and then back again.

    I can only guess at your future savings potential but you can begin to fill the Tesco account back up with whatever you can afford to throw at it.
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