First Direct v Nationwide

cadboll

At the moment I have about 6.5k in savings which is sitting in a Nationwide e-savings account (I have already used up my ISA allowance!). The rate is 4.75 Gross/AER. I have also opened an account with First Direct for their savings account at 5.00% Gross/AER. Is it worth transfering the money to the higher rate? First Direct pays interest monthly, Nationwide yearly. Or is there a better account for my money?

I am buying a house at the money and so potentially will be using this money at Easter time. Thanks.

pin

FD savings account, if you withdraw your money during the month, I think you lose your interest.

al_yrpal

FD is HSBC - ugh!

If you use NW e-savings you get daily interest and no delay or loss of interest for up to 4 days.

mattbass

Nationwide are currently offering a christmas bond aswell. 5.10% for 1 year fixed OR 5.20% for 3 years fixed. Quite nice if you are not gonna need some of your savings for a year or two. (EDIT) But if you are buying a house soon then this is not for you, sorry.

Milarky

mattbass wrote:

Nationwide are currently offering a christmas bond aswell. 5.10% for 1 year fixed OR 5.20% for 3 years fixed. Quite nice if you are not gonna need some of your savings for a year or two. (EDIT) But if you are buying a house soon then this is not for you, sorry.

Withdrawn 13th Dec I'm afraid [for anyone else.]

For larger amounts than cadboll has there is the Cahoot introductory 'bonus savings' account. For smaller amounts there is the A&L 'Online Saver [Issue 2]'. Both are basically 6 month 'shrink' accounts paying the NW rate plus about 0.5%. That's for 6 months, of course just 0.2% more than leaving where it is...