The Savings Fountain Discussion Area

MSE_Martin
MSE_Martin Posts: 8,272 Money Saving Expert
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Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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Comments

  • mistral_2
    mistral_2 Posts: 150 Forumite
    Martin I have this system exactly in place.

    But with the added pleasure off Egg paying interest on their own money , this being after the credit card transfer .

    I do worry a little at the slight loss of inteterst with moving the money out of my ING account .

    I will await my year projections for interest profit .

    You could start some test case examples on the site .

    I have also got the phone tariff working nicely .

    Credit cards are different as I think it does not pay to go for broke ,but massage the system carefully .

    I may be missing out on interest this way however !!

    You may have forgot one loophole which is saving within your childs account .

    I know you have not got any yet ( is the sky lady single ,)

    but you can save within them as long as the total gross interest for the year does not exceed £100.

    I may have a few of these figures wrong so I await a telling off from Lisyloo .

    Now have we missed anything else ?
    'The path of the righteous man is beset on all sides with the iniquities of the selfish and the tyranny of evil men. Blessed is he who in the name of charity and good will shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon those with great vengeance and with furious anger those who attempt to poison and destroy my brothers.
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
    First Post First Anniversary Combo Breaker
    Sounds good to me MC.

    I just checked - i did put a note about child accounts in the Savings Fountain - and it is an important one. However if you are simply using it as a tax break. It is important to do it carefully - and i didnt want to confuse the issue
    :)
    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • isasmurf
    isasmurf Posts: 1,999 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Noticed one small error in your article Martin. The cash ISA limit goes down to £1,000 from April 2006, not 2005 as you had said.
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
    First Post First Anniversary Combo Breaker
    Slip of the keyboard... thank you.... I've changed it :)
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • System
    System Posts: 178,086 Community Admin
    Photogenic Name Dropper First Post
    Dear Martin,

    Regarding the Savings Fountain - great system! I already have it in place. Just an update on some details:

    The Derbyshire Regular Savings Account now allows monthly deposit of between £10 and £1000. Also, until 30 April 2004, they will allow you to open two accounts, therefore allowing £2000 pcm!

    Wish I had that kind of money! ;)
  • System
    System Posts: 178,086 Community Admin
    Photogenic Name Dropper First Post
    Dear Martin

    I'm confussed!

    I have arranged to open a mini cash ISA this year and will pay another £3000 into it in the new tax year - no problem.

    I also have savings in an ING account which I was going to drip feed into the suggested Halifax Regular Saver Account. Here is where I'm confussed - the assistant in the Halifax advised me that if I put £250 per month into the Halifax Regular Saver at the end of the year I would get £98 gross interest. Whereas if I left my £3000 in the ING account at 4.5% I would get £135 gross interest at the end of the year. Therefore it makes more sense to keep my money where it is in the ING account.

    What you are saying is a good idea but as I said I am now rather confused and would welcome your comment.

    Many thanks
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
    First Post First Anniversary Combo Breaker
    You've forgotten if you put £3000 into halifax it'll take a year to get it all there.  However you will still be getting interest on the remainder in ING

    think like this

    Month 1   HAlifax £250  ING £2,750
    Month 2 Halifax £500 ING £2,500
    Month 3 Halifax £750 ING £2,250
    etc

    so as well as the halifax interest, the money in ING is earning interest too.  Total these together and you get more interest than ING alone.

    This is all in the calculation.  I've seen elsewhere on this site people saying Halifax doesn't really pay the 6.05% because of the drip feeding.  So let me clear it up.

    The way to think of it isn't Halifax pays less, but effectively you're not investing £3000.  Over one year with halifax the average investment amount is roughly £1,500.  Providing your drip feeding from another account then its the best way - thats one of the reasons I invented the fountain :)

    martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • System
    System Posts: 178,086 Community Admin
    Photogenic Name Dropper First Post
    Martin

    Many thanks for your quick reply.  It all makes sense now!  

    It might be of interest to you but the assistant in my local Halfax turned me away from this account and told me she had done the same with other people who were in a similar situation to myself.

    No longer Confused
  • Martin

    I have a Halifax Monthly Saver, with its anniversary in July. I was paying £500 a month into this, which I have now split £250 to this account and £250 to the new regular saver.

    Come July, I will no longer be able to support payments to both, although I understand the Monthly Saver can continue, and receive the bonus each year.

    My question is:

    Would it be worth my withdrawing enough from Monthly Saver Account at the beginning of August to be able to put it into the Ing Direct account, and start the drip feeding process all over again, or would I be better just putting it back into Ing Direct and leaving it there?
  • System
    System Posts: 178,086 Community Admin
    Photogenic Name Dropper First Post
    This is good advice, but I have another line of question;

    I have c.£5k capital to come back from a maturing Tessa... would it make more sense to knock £5k off my motgage & avoid interest payments (currently 5.25%) for the next 5 yrs, or invest same in one of the best-buy TOISAs ?
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