Open Plan is this the best use of it???

cslogg

I have A Woolwich Open Plan account.
I have £25k in my savings pot and I owe £24k on my mortgage.
Is my money in the right place or could I get a better deal/return elsewhere?

cslogg

getmore4less

Offset accounts all pay 0%.

Move the excess over 100% fully offset, to interest bearing accounts.

What we have is on-line saver accounts to move excess funds about(instantly) till we find better placeas for the money or spend it.

Don't foreget to have your current account offsetting as well.

cslogg

Sorry to be dumb,getmore4less but how does thet work and where is the best place to get details?
cslogg

getmore4less

I thought it should have all moved over to Barclays by now.
this is what we have

current account,
mortgage current account(mortgage reserve)
savings accounts.

I use www.barclays.co.uk for details of the various accounts that are not part of openplan. (eg e-saver) looking for the best rate that can be managed on-line.

Need to have on-line banking to make it efficient to shuffle the money about.

The key thing is any funds over 100% earn you nothing this should be showing on your monthly statements so need to be moved out.

cslogg

Sorry,yes mine is with Barclays now and I have got online banking.
I think I am with you now,anything over the 24k I have left on my mortgage should be in a savings account.
cslogg

cslogg

So if I leave the same in my savings pot as I owe on my mortgage I should put any excess in an interest gaining account?Would a Cash Isa be best?
Do I need to keep the money in the same bank,or just look for the best one around.
cslogg

getmore4less

ISA are good there is no tax but check the rates are good enough

you can put the money aywhere you like.

If you can add a bit more to the £1k over the next year and not need the money you might want to consider the regular saver that pays 6%
http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=homefreegroup&value=14937

cslogg

Just applied for that one getmore4less.
Is that account per person or per account.?
My wife and I have a joint account and was wondering if we can have one each.
Is it also possible to include the monthy savers account in the open plan roundup?

cslogg

getmore4less

It is not an openplan account so no you cannot offset

but why would you, then you would get NO interest.

I would open two accounts if you can and think about putting in the full £250 into each from the offset/surplus from income funds.

What rate is your mortgage? if lower than the savings aount after tax put in as much as you can if less keep the offset at 100%.

cslogg

The last letter I had from Barclays (January) stated the rate at 2.75%
I was wondering if it would be better to have one monthly saver in Barclays and maybe get one of the 7% Cash Isas that are around rather than two savers with Barclays.As you can tell I am not an expert and do not know which would get a better return.

cslogg

getmore4less

7% cash ISA look good if you are not using your allowance betterthan 6%taxed.

Why not get 2 of each since the rate is better.

Check for any restrictions in case the mortgage rates go up and you need to move the money back to the offset.