Regular V fixed rate

mrseyes

Which is better

£250 in reg saver with 6.25% interest per yr or £5000 pa in fixed 3.90% per yr?

Lokolo

The latter.

opinions4u

Why not do:

£2,000 at 3.9%
£3,000 at 3.25% in Egg

Use the £3,000 to drip feed the regular saver at 6.25%.



Or:

£5,000 in egg at 3.25%

Drip feed:

£250pm to Bucks reg saver at 6.25%
£167pm to Halifax reg saver at 5.00%

MSE Calculator can help.

Paul_Herring

mrseyes wrote: »

Which is better

£250 in reg saver with 6.25% interest per yr or £5000 pa in fixed 3.90% per yr?

Depends. Would the £250 be coming out of the £5000 or from income?

£250/m to a 6.25% would generate (6.25%*6.5*250) £101.56 before tax. This doesn't include what a decreasing £5000 would be generating in a lower rate savings account.
£5000 in a 3.90% would generate (3.9%*5000) £195 before tax