student savings and interest calculations

browser

Hi

I am starting uni soon and would like to maximise my interest from my overdraft and savings.

All in all I should have about £5000 (£2000 currently and £3k to come)

I would like ideally to have some money in instant access but can lock away some (1 year max).

I originally opened a Kaupthing Edge savings at 6.55% but then people scared me (Iceland bank etc.) so opened a Natwest E-saver at 6.5% (a few pounds interest lost). Now the Natwest E-saver bonus kicks in at the end of October so I am supposed to only invest £1 till the end of October and then move the rest. Is it worth moving money to Kaupthing Edge till then? With the BACS transfer time, by the time it is moved, it may be in that account for less than a month and the interest is calculated monthly. If the money is there for less than a month it will still get some interest, right?

I also looked at the A&L Premier 21 account. 10% up to £1000, 0.1% after. Does that mean I need to try and keep the account balance strictly under £1000 otherwise the WHOLE account gets 0.1%? or only the money above £1000 gets 0.1%?

I hope this makes sense and I appreciate your help.

YorkshireBoy

browser wrote: »

Is it worth moving money to Kaupthing Edge till then?

The difference (on £5K) is 30p per day gross. But, you don't yet have the full £5K and you'll incur some loss whilst your money is in transit. Personally, if NatWest is your preferred provider I wouldn't bother with KE.

If the money is there for less than a month it will still get some interest, right?

Yes. Interest is calculated daily, and paid monthly or on account closure.

...only the money above £1000 gets 0.1%?

Correct.