The Savings Fountain Discussion Area

MSE_Martin

Click here to read the article this discussion relates to.

To ask a question or discuss this, then click reply

mistral_2

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 ?

MSE_Martin

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

isasmurf

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

Slip of the keyboard... thank you.... I've changed it

System

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

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

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

System

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

Margaret_Millne

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

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 ?