this saving malarky...

dancingfairy

I got confused with your diagram. I would start simply. Use your ISA allowance. Then possibly put money into a regular savings account. Yes you might maximise the interest following your complex diagram but is it worth it for the hassle- especially if your are new to the whole money saving thing. Start simply and build up. I would probably stop at the instant saver part of your diagram or go for something you suggested in your original post.
Another option after the ISA route and current account and emergency fund is to go for a bond. Ie the money must stay in the account for a fixed time (you decide when you take it out) and you know how much interest you will earn. One of the best bonds is Abbey paying 5.50% I believe over 2 years- but you can't make any withdrawls. It depends on how much you have and what sort of access you want on the money.

rkuk

thanks dancingfairy...perhaps I am looking at it a bit too technical....hmmm. good to hear some feedback though However my little diagram, just reiterates the original post - I just wanted to see if the actual system of setting it up was correct? i.e. if i can have an "in" current account on an instant saver and an "out" current account on there....

I don't know if bonds would be good for me, I may need access to my money at any point and don't want it to be tied up (if this is the case with bonds?)

cheers :beer:

Kazza242

rkuk, ok, from your diagram:

Current a/c to (linked) e-saver: This is a good idea, as transfers to and from the e-savings account are instant. Using the e-saver in this way is a good way of making some extra interest, especially if your current account doesn't pay much interest.

Verdict: Good idea, I do this myself.

Current a/c to Instant saver (B&B): If by instant saver you mean the B&B e-Savings account paying 4.85%, then this is a good store for your money.

Verdict: As a medium term store for money, then this sounds good.

Funding of the Lloyds TSB monthly saver:
Current A/C >>> Instant Saver >> Current A/C 2 LTSB > LTSB monthly saver
This involves too many transfers and is a complicated way of shifting money into a high interest monthly saver. E.g. This is how it would work in practice:

Current a/c >>> Instant Saver >> Current a/c 2 LTSB > LTSB monthly saver
(Monday) >>> (arrives Wed) >> (arrives Fri) > SO set for Mon* (arrives Mon)

(*Money to fund SO must be in LTSB current a/c one working say before SO is due, otherwise SO will bounce).

Therefore, it takes one week (Monday - Monday) for funds that come from your current account to reach your monthly saver. Also you're not earning any interest on that money until it reaches the monthly saver!

Verdict: Way too many transfers that will lose you interest every month and is too complicated making it likely that you might forget to make a transfer. You could cut the Instant Saver out of the loop:
Current a/c >> Current a/c 2 LTSB > LTSB monthly saver.
Or
Current a/c >> LTSB monthly saver.

Funding of the Halifax regular saver:
Current a/c >>> Instant Saver >> Current a/c 2 LTSB > HBOS regular saver
(Mon) >>> (arrives Wed) >> (arrives Fri) > (arrives Wed)

Payments would take 9 days to reach your HBOS regular saver from your current a/c!

Verdict: It takes too long to get the money into the regular saver. To take full advantage of the higher interest rates that these accounts offer you need to get the money transferred into them quickly. Why not fund this account directly from your (Barclays) current a/c?

Current a/c >>> HBOS regular saver
(Mon) >>> (arrives Wed)

Funding of Abbey monthly saver:

Verdict: Same as HBOS regular saver, it takes too long as there are too many transfers. Again would be better to fund this directly from the Barclays c/a. Getting the money in quicker means you earn higher rates of interest for longer.

rkuk

ah! that's the type of help I was hoping for. I was worried about the times and stuff like that.

so - I would be best keeping a little pot in my barclays, e-saver, and not transferring all my savings into the instant saver. that way always leaving enough in each month to carry out my transactions.

whenever I need more in my e-saver, I can just pull it out of my instant saver back into my current a/c and continue.

thanks! (again)