Barclays - 6% Savings?

Amnesia180

Hi All,

I've just seen in my local Barclays branch that they are offering 6% on savings (where no withdrawals are made in a month) and 3% (where withdrawals are made).

I have a Lloyds TSB account where I am making basically nothing on it. So I was thinking of setting up a direct debit from my Lloyds savings to Barclays for £250 per month (which is the most you can transfer in a month).

Has anyone else got this and think it is a good idea?

Link to Barclays savings...

Thanks,
Amnesia

withabix

Max £250 per month deposit, max £3000 deposit in 12 months.

I've got one of these - if you've got £250 per month to spare, then it's daft not to put it in this account, unless you've got £3600 immediately available and don't have a 2009 Cash ISA yet.

This deal equates to 3.2% on £3000 over a year, before tax.

Post edited to correct error about effective interest on this account.

PinkPig

Amnesia180 wrote: »

Has anyone else got this and think it is a good idea?

Yes, I have a Barclays Monthly Savings account at 6% and it is a good deal. You can only put in a maximum of £250 a month and of course you only earn interest on money that's currently in the account, but "drip feeding" from another good savings account (moving the money over £250 at a time) gives you a good overall interest rate.

If your other savings account is earning "basically nothing" then you should also definitely move to another instant access savings account for the rest of the balance - having a monthly savings account isn't a substitute for doing this. If you earn 6% on some small fraction of your money and 0.5% on the rest you're not doing that well.

Amnesia180

Thank you for your quick reply.

For the first 3 or 4 months, I will have £250 per month to spare (this could last longer). However, I've just had a car bill come through, so after those 4 months I will probably only have around £150 per month to spare.

I certainly don't have £3,600 immediately available.

PinkPig - Can you recommend any other instant access savings accounts?

PinkPig

Amnesia180 wrote: »

PinkPig - Can you recommend any other instant access savings accounts?

There's a MSE article about savings accounts - see http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

For example there's an ING account that pays 3% with no minimum balance.

JoeCrystal

I got Barclays Monthly Savings account as somewhere to put away any bonus I get at work every month. :cool:

D1zzy

PinkPig wrote: »

Yes, I have a Barclays Monthly Savings account at 6% and it is a good deal. You can only put in a maximum of £250 a month and of course you only earn interest on money that's currently in the account, but "drip feeding" from another good savings account (moving the money over £250 at a time) gives you a good overall interest rate.

If your other savings account is earning "basically nothing" then you should also definitely move to another instant access savings account for the rest of the balance - having a monthly savings account isn't a substitute for doing this. If you earn 6% on some small fraction of your money and 0.5% on the rest you're not doing that well.

If you are going to do this how about HSBC -web site extract
"Fix your interest rate for 12 months by applying for our Regular Saver Account. Current Account Advance customers can earn 8% AER/gross. HSBC Premier, HSBC Plus and Passport customers can receive a preferential rate of 10% AER/gross".

PinkPig

D1zzy wrote: »

If you are going to do this how about HSBC -web site extract
"Fix your interest rate for 12 months by applying for our Regular Saver Account. Current Account Advance customers can earn 8% AER/gross. HSBC Premier, HSBC Plus and Passport customers can receive a preferential rate of 10% AER/gross".

Unfortunately although the HSBC accounts have high interest rates they're not much good for most people. You need to one of their (bad) current accounts in order to get them - and they all require a monthly fee or that you pay in your salary.

anticlaus105

Can I have this account if I also have the 7.75% one opened in December?

karie

i have a plus account with hsbc and it seems worth the money. have preferential rate on my mortgage as a result, 10% monthly saver, free worldwide travel insurance, free breakdown cover, free foreign ATM withdrawals...

saves me a good bit!

Baldur

karie wrote: »

........ free worldwide travel insurance, free breakdown cover, free foreign ATM withdrawals...

How does the Plus account monthly charge of £9.95 for 3 months then £12.95 per month translate to "free"?