Best place for savings?

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pinklady21
pinklady21 Posts: 870 Forumite
in Savings & investments
Hello everyone
Been looking through the Best Buys and trying to work out where best to stash some cash. It needs to be instant access, or a single withdrawal a year as the cash will be part of a house deposit that I am likely to need over the next few months.

My decision is slightly complicated at the moment as it is not clear which savings accounts will increase rates in line with the Base Rate increase.

What I have:
Santander 123 1.5%: 20k
Sainsburys Cash ISA 1.06%: 50k
NS and I Cash ISA 1%: 15k

Yorkshire BS regular saver just matured so need to shift 12K
Yorkshire BS regular saver just been closed so need to shift 20k

I have not paid anything into the either cash ISA this year so still have the 20k available to fund a new ISA.

So
two questions:
1. where should I put the 32k that was in the YBS? Am I best putting 20K of it into a new instant access ISA? Which one?

2. Should I transfer the existing ISAs for a better rate to, say, the Coventry BS which is currently offering 1.3%?

Thinking about Birmingham Midshires at 1.3% for some of the cash and then drip feeding some back into a new YBS regular saver at £500 per month (think the YBS rate will be 2% in December.)

I already have a 5% Santander regular saver drip feeding in £200 per month, and might also do a TSB 2% or BoS 2.5% regular saver as well for about £200 a month each.

Am I missing anything obvious about the best places to get some kind of return for the cash? Thank you in advance.
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  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    If you are sure you will need the money for a house deposit soon, then there is unlikely to be much benefit from putting it into a standard cash ISA for a few months. You also need to avoid locking the money away, and if you are buying with a mortgage then the other option of multiple current accounts is also out.

    I would consider something like the Tesco Internet Saver account @ 1.2% up to the FSCS £85k limit. Which could - subject to access conditions and your tax position - include taking some money out of one of your ISAs if you are going to be doing that anyway in a few month's time.
    "In the future, everyone will be rich for 15 minutes"
  • RG2015
    RG2015 Posts: 5,911 Forumite
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    The Tesco internet saver will be increasing from 1.20% to 1.35% on 1st December although this includes a bonus of 0.80% which drops off after one year.
  • pinklady21
    pinklady21 Posts: 870 Forumite
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    Thank you - that is most helpful. I didn't know that the Tesco internet saver was increasing. Sounds like it could be a reasonable place for some of the cash for up to a year.
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    RG2015 wrote: »
    The Tesco internet saver will be increasing from 1.20% to 1.35% on 1st December although this includes a bonus of 0.80% which drops off after one year.

    For a very short term place to put house deposit money that shouldn't be an issue though - but I meant to add in my previous post that I think Tesco have a max £10k per day limit on transfers out to non-Tesco accounts, so that will involve a bit of planning ahead when the deposit money is actually required.
    "In the future, everyone will be rich for 15 minutes"
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    pinklady21 wrote: »
    Thank you - that is most helpful. I didn't know that the Tesco internet saver was increasing. Sounds like it could be a reasonable place for some of the cash for up to a year.

    As things stand Tesco allow you to open multiple accounts (up to 6?) so when the bonus runs out or a new interest rate is launched you can just open a new account and transfer the money (which can be done instantly online) :)
    "In the future, everyone will be rich for 15 minutes"
  • RG2015
    RG2015 Posts: 5,911 Forumite
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    EachPenny wrote: »
    As things stand Tesco allow you to open multiple accounts (up to 6?) so when the bonus runs out or a new interest rate is launched you can just open a new account and transfer the money (which can be done instantly online) :)
    Yes, it is six although this is only on the Tesco Bank Community site as a post from a Tesco Bank Community manager.

    I also found out that Tesco Bank does not apply any increases in the bonus rate to existing internet saver account holders. You need to open a new one. And finally, they pay the basic interest once a year in March and bonus interest 12 months after opening the account.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    EachPenny wrote: »
    ...I think Tesco have a max £10k per day limit on transfers out to non-Tesco accounts
    I've previously transferred out £50K by telephone banking to an existing payee. It was a few years ago, so I'm not sure if it's still the case?
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    YorkshireBoy wrote: »
    I've previously transferred out £50K by telephone banking to an existing payee. It was a few years ago, so I'm not sure if it's still the case?

    I checked the website after posting about the £10k. It does suggest they might help if you phone, but I wouldn't want to rely on that a few days before the deposit has to be paid.

    £100k can be transferred to a Tesco current account and although the same £10k limit applies to online banking, phone banking withdrawal appears limited only by the available balance.
    "In the future, everyone will be rich for 15 minutes"
  • pinklady21
    pinklady21 Posts: 870 Forumite
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    Thanks all - much appreciated. Am I correct to assume as the Tesco Internet Saver rate is "variable", that means that if I were to open an account now in anticipation of the rate increasing from 1.2% to 1.35% on 1st December, that the rate would increase automatically, I would not have to reapply for a new account?
  • Kim_13
    Kim_13 Posts: 2,472 Forumite
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    They are stopping most external transfers from savings accounts from 22nd April 2018, so the OP will need to link a non-Tesco current account to the internet saver, if she does not hold a Tesco Current Account. If you hold a Tesco Current Account then the funds can be moved from the Internet Saver to the current account and then onwards as required.

    I haven't seen anything published about a Tesco increase, but it would depend on how they structure it. If they increase the fixed rate bonus you wouldn't get the increase, but you would if they increase the standard variable rate of interest (this is most likely) applied to the Internet Saver.

    Has anyone got a link to a Tesco announcement?
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