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  • FIRST POST
    • bobobski
    • By bobobski 7th Feb 18, 3:07 PM
    • 701Posts
    • 1,600Thanks
    bobobski
    Ideas for reallocating my savings?
    • #1
    • 7th Feb 18, 3:07 PM
    Ideas for reallocating my savings? 7th Feb 18 at 3:07 PM
    Hi all


    With two regular savers about to mature and very few direct debits in my name I'm running out of ideas of where to put my money and would appreciate your input yet again please


    So, I'm unmarried/no joint bank accounts, looking to buy a property sometime between now (unlikely) and in 18 months (more likely) so not keen on locking money away, currently contributing 7% to my salary sacrifice pension (matched 7% by my employer - this is the maximum they'll match) and with about £28k to my name. In case relevant, I'm a higher rate tax payer.


    Currently my money is spread as follows:
    - £5k BOS Vantage x 1 (two direct debits used for this) - 2%
    - £5.8k-ish Halifax HtB ISA - 3.5%
    - £3.6k First Direct regular saver - 5% (maturing later this month)
    - £6k Nationwide regular saver - 5% (maturing later this month)
    - £1.5k TSB - 3%
    - £6k Tesco x 2 (no direct debits - old issue) - 3%


    I should point out that I have used my FlexDirect entitlement.


    In addition, I aim to save at least £1k a month - in bad months (like this month) it can be as low as £500 but in good months it can be more like £1.4k.


    My planned reshuffle of accounts looks like this:
    - £5k BOS Vantage x 1 (two direct debits used for this) - 2%
    - £1.5k TSB - 3%
    - £6k Tesco x 2 (no direct debits - old issue) - 3%
    - £12k Skipton LISA (looking forward into April for this - includes whole Halifax HtB ISA and 2018-2019 allowance) - 0.75%
    This accounts for approximately £24.5k but I query whether it is effective to put 2018-2019's LISA contribution in at the front end of that tax year or better to keep the £4k somewhere else until March 2019 for higher interest. Even using the LISA to its fullest, that still leaves a hole of about £4k- waiting until the end of the next tax year would leave a hole of £8k.


    In terms of regular savers, I intend to open the following (and drip-feed if necessary in "lower saving months"):
    - £300 First Direct - 5%
    - £250 Nationwide - 5%
    - Open a new HSBC account, move my last remaining direct debits to this (via a switch for full gain) and then open the regular saver of £250 @ 5%
    - If possible, keep my HtB ISA open for the 3.5% interest but not sure if this is possible if I'm doing a full transfer to the Skipton LISA?


    This allows for £1,000 regular savings per month at an average of 4.7%. If I need more, I could open the Bank of Scotland regular saver for another £250 at 2.5%.


    Any thoughts on how to optimise this plan?


    Thanks in advance
    #8: Save 12k in 2018: £1,006.12 / £14,000 (7.18%) | #18: Save 12k in 2017: £12,078.82 / £12,000 (100.65%) | #86: Save £12k in 2016: £8,476.09 / £10,000 (84.76%)
    House deposit by 31/12/2020: £22,927.36 / £60,000 (38.21%) | Emergency fund by 31/12/2020: £1,900.00 / £5,000 (38.00%)
Page 1
    • badger09
    • By badger09 7th Feb 18, 3:49 PM
    • 5,896 Posts
    • 5,231 Thanks
    badger09
    • #2
    • 7th Feb 18, 3:49 PM
    • #2
    • 7th Feb 18, 3:49 PM
    Hi all


    With two regular savers about to mature and very few direct debits in my name I'm running out of ideas of where to put my money and would appreciate your input yet again please


    So, I'm unmarried/no joint bank accounts, looking to buy a property sometime between now (unlikely) and in 18 months (more likely) so not keen on locking money away, currently contributing 7% to my salary sacrifice pension (matched 7% by my employer - this is the maximum they'll match) and with about £28k to my name. In case relevant, I'm a higher rate tax payer.


    Currently my money is spread as follows:
    - £5k BOS Vantage x 1 (two direct debits used for this) - 2%
    - £5.8k-ish Halifax HtB ISA - 3.5%
    - £3.6k First Direct regular saver - 5% (maturing later this month)
    - £6k Nationwide regular saver - 5% (maturing later this month)
    - £1.5k TSB - 3%
    - £6k Tesco x 2 (no direct debits - old issue) - 3%


    I should point out that I have used my FlexDirect entitlement.


    In addition, I aim to save at least £1k a month - in bad months (like this month) it can be as low as £500 but in good months it can be more like £1.4k.


    My planned reshuffle of accounts looks like this:
    - £5k BOS Vantage x 1 (two direct debits used for this) - 2%
    - £1.5k TSB - 3%
    - £6k Tesco x 2 (no direct debits - old issue) - 3%
    - £12k Skipton LISA (looking forward into April for this - includes whole Halifax HtB ISA and 2018-2019 allowance) - 0.75%
    This accounts for approximately £24.5k but I query whether it is effective to put 2018-2019's LISA contribution in at the front end of that tax year or better to keep the £4k somewhere else until March 2019 for higher interest. Even using the LISA to its fullest, that still leaves a hole of about £4k- waiting until the end of the next tax year would leave a hole of £8k.


    In terms of regular savers, I intend to open the following (and drip-feed if necessary in "lower saving months"):
    - £300 First Direct - 5%
    - £250 Nationwide - 5%
    - Open a new HSBC account, move my last remaining direct debits to this (via a switch for full gain) and then open the regular saver of £250 @ 5%
    - If possible, keep my HtB ISA open for the 3.5% interest but not sure if this is possible if I'm doing a full transfer to the Skipton LISA?


    This allows for £1,000 regular savings per month at an average of 4.7%. If I need more, I could open the Bank of Scotland regular saver for another £250 at 2.5%.


    Any thoughts on how to optimise this plan?


    Thanks in advance
    Originally posted by bobobski
    Initial thoughts:

    Don't wast 2 DDs on the switch to HSBC. Unusually, 2 SOs will do the trick.

    M&S current account - switch to it (£185 I think) and also open monthly saver 5% up to £250 pm. Also needs 2 DDs included in the switch but they don't have to pay every month, so can be annual.
    • bobobski
    • By bobobski 7th Feb 18, 4:19 PM
    • 701 Posts
    • 1,600 Thanks
    bobobski
    • #3
    • 7th Feb 18, 4:19 PM
    • #3
    • 7th Feb 18, 4:19 PM
    Initial thoughts:

    Don't wast 2 DDs on the switch to HSBC. Unusually, 2 SOs will do the trick.

    M&S current account - switch to it (£185 I think) and also open monthly saver 5% up to £250 pm. Also needs 2 DDs included in the switch but they don't have to pay every month, so can be annual.
    Originally posted by badger09

    Very helpful, thank you Badger! So glad you pointed out the HSBC standing order option.


    If I'm switching to HSBC for the £200, fair enough that leaves me with two direct debits but it leaves me out of a donor account. I'll keep the M&S account in my back pocket for now and if I need another regular saver I'll look at opening a donor account for the switch
    #8: Save 12k in 2018: £1,006.12 / £14,000 (7.18%) | #18: Save 12k in 2017: £12,078.82 / £12,000 (100.65%) | #86: Save £12k in 2016: £8,476.09 / £10,000 (84.76%)
    House deposit by 31/12/2020: £22,927.36 / £60,000 (38.21%) | Emergency fund by 31/12/2020: £1,900.00 / £5,000 (38.00%)
    • badger09
    • By badger09 7th Feb 18, 5:30 PM
    • 5,896 Posts
    • 5,231 Thanks
    badger09
    • #4
    • 7th Feb 18, 5:30 PM
    • #4
    • 7th Feb 18, 5:30 PM
    Very helpful, thank you Badger! So glad you pointed out the HSBC standing order option.


    If I'm switching to HSBC for the £200, fair enough that leaves me with two direct debits but it leaves me out of a donor account. I'll keep the M&S account in my back pocket for now and if I need another regular saver I'll look at opening a donor account for the switch
    Originally posted by bobobski
    Have you thought about opening an additional account at either BoS or Nationwide, on which you set up SOs or DDs as required for the preferred switch incentive?
    • ValiantSon
    • By ValiantSon 7th Feb 18, 5:56 PM
    • 754 Posts
    • 615 Thanks
    ValiantSon
    • #5
    • 7th Feb 18, 5:56 PM
    • #5
    • 7th Feb 18, 5:56 PM
    This accounts for approximately £24.5k but I query whether it is effective to put 2018-2019's LISA contribution in at the front end of that tax year or better to keep the £4k somewhere else until March 2019 for higher interest.
    Originally posted by bobobski
    I'd say don't bother putting 2018/19 allowance into the LISA until March as you can earn more interest outside of the account. Keeping the £4000 in a different account, even if just the best paying easy access savings, will be better than earning only 0.75% inside the LISA. The real advantage of the LISA is the bonus, so just use it for that.
    • bobobski
    • By bobobski 8th Feb 18, 10:35 AM
    • 701 Posts
    • 1,600 Thanks
    bobobski
    • #6
    • 8th Feb 18, 10:35 AM
    • #6
    • 8th Feb 18, 10:35 AM
    Have you thought about opening an additional account at either BoS or Nationwide, on which you set up SOs or DDs as required for the preferred switch incentive?
    Originally posted by badger09

    It's on the cards, but at the moment my priority is finding a place for the money I have before accumulating more money - a good problem to have, I know!

    I'd say don't bother putting 2018/19 allowance into the LISA until March as you can earn more interest outside of the account. Keeping the £4000 in a different account, even if just the best paying easy access savings, will be better than earning only 0.75% inside the LISA. The real advantage of the LISA is the bonus, so just use it for that.
    Originally posted by ValiantSon

    That's a good point - even the 1% I have on my Nationwide easy access beats the LISA rate (although it may be a finer line when you factor in interest on the bonus payment). I'll look at opening one of the top easy access savers for the £8k-ish unallocated. Thanks!
    #8: Save 12k in 2018: £1,006.12 / £14,000 (7.18%) | #18: Save 12k in 2017: £12,078.82 / £12,000 (100.65%) | #86: Save £12k in 2016: £8,476.09 / £10,000 (84.76%)
    House deposit by 31/12/2020: £22,927.36 / £60,000 (38.21%) | Emergency fund by 31/12/2020: £1,900.00 / £5,000 (38.00%)
    • Eco Miser
    • By Eco Miser 8th Feb 18, 10:40 AM
    • 3,419 Posts
    • 3,176 Thanks
    Eco Miser
    • #7
    • 8th Feb 18, 10:40 AM
    • #7
    • 8th Feb 18, 10:40 AM
    It's on the cards, but at the moment my priority is finding a place for the money I have before accumulating more money - a good problem to have, I know!
    Originally posted by bobobski
    Well another BOS account would be another £5k at 2%, as well as the bonus.
    Eco Miser
    Saving money for well over half a century
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