£17000 in savings to invest

JonnyH2

Hi, I'm planning to invest around 17000 in some assorted savings accounts...Just looking for advice, after looking around, is the following a good plan? Looking for accounts operated online and fairly reliable...

Alliance and Leicester Current Account (£55 topcashback;) + 6% upto £2500 balance) standing orders in and out of the account...shouldn't be too much hassle right?

The AA fixed rate 2 years - 4.35% for the rest...

Plus planning to use two Regular savers with Halifax and Natwest for income through the year...

Is this a good plan of action? Is there anything better I could do?

Thanks!
Jon

Jake'sGran

I have just opened an AA account and was really impressed with the speed of the process. What are the regular saver accounts you are interested in and what do you mean about re "income throughout the year"? I have never used a regular saver because they seem so messy and calculating the final amount of interest you will get is not as straightforward as some people think. With some of them don't you need to put in a large regular amount each month? As I underdstand it you can then keep taking the money out but I don't understand your point about interest.

p00hsticks

JonnyH2 wrote: »

Plus planning to use two Regular savers with Halifax and Natwest for income through the year...

Like Jake'sGran I don't understand what you mean by this - regular savers won't usually give you income through the year - quite the reverse, you are expected to add to them at regular (usually monthly) intervals.
You are often limited to how much you can put in - usually around £250 a month.

If you have a lump sum now, then you need to find somewhere that will accept the whole lot now and pay a good rate of interest. If a regular saver offers even more then drip feed the regular saver from it.

If you want monthly income, you need to be looking for a high interest savings account that pays monthly interest, not a regular saver.

JonnyH2

Yes I understand the regular savers only pay interest after 12 months... Doesnt seem that messy to me, you set up a standing order, then leave it.. As long as you dont miss a payment its ok right?
Applyed for the AA today, glad it sounds reliable/easy...You have to post off a cheque to them is that right? (am quite new to this..)
Just been looking at the new 6% reg saver with 6% A+L current account... You have to use the switching service though, do you just have to switch just one standing order/direct debit to qualify as 'Using the Swtiching Service'?

Thanks.

Jake'sGran

JonnyH2 wrote: »

Just been looking at the new 6% reg saver with 6% A+L current account... You have to use the switching service though, do you just have to switch just one standing order/direct debit to qualify as 'Using the Swtiching Service'?

Thanks.[/QU

When I last looked at the A & L (they have a big ad in The Sunday Times every week) there was a monthly fee.

If I was new to all this I would look for something simple paying a good rate. There is a post today mentioning that Egg are paying 3.25% on new accounts. This is the about what you would actually get with a 6% regular saver account

tom188

When I last looked at the A & L (they have a big ad in The Sunday Times every week) there was a monthly fee.

Different product

This is the about what you would actually get with a 6% regular saver account

Nonsense, 6%>3.25% means you get more from the regular saver, but I know from past experience you wont change your view.

If the OP wants to save out of income and maximize their interest then regular savers are the way to go.

antispam246

I think the confusion here is that he intends to use the regular saver for new money (as in, his wages, as they come in) not from the lump sum he already has.