Urgent Please

homersimpson_3

My friend is lucky enough to pay into regular savers-
50 into a+l 10%
250 lloyds tsb 8%
150 b+b 10%
50 into isa.
just read another posting which said you get more interest on money if you put say 500 per month into yourkshire at 6.5%. would my friend be better off? why? anything else she needs to consider.

Sillychuckie

you get more money, because you put more in.
Saving £500 each month will get you more interest than saving £250 a month, even if the rate on the £250 is slightly better.
The ltsb 8% one is better because the term is longer, but for all the other ones that have the same term (12 months), they should put the most into the one with the highest interest.
i.e. Up the A&L one from 50 to 250 (but not sure you can change the amount once you have set the A&L account up. check terms)

Mikeyorks

homersimpson wrote:

My friend is lucky enough to pay into regular savers-
50 into a+l 10%
250 lloyds tsb 8%
150 b+b 10%
50 into isa.
just read another posting which said you get more interest on money if you put say 500 per month into yourkshire at 6.5%. would my friend be better off? why? anything else she needs to consider.

No - she would not be better off.

Ignoring the ISA - as you don't stipulate the rate, and I'm assuming that payment is to continue? Your friend is paying £450pm into accounts each one of which beats the Yorkshire rate. Therefore, on aggregate, they are paying several percentage points above putting the £450 into the Yorkshire Reg Saver.

I think you mis-read the post under the Yorks Saver? Which was comparing, rather oddly, whether the interest from a maximum £250pm into A&L was better / worse than a max £500pm into Yorkshire. Clearly Yorks would win on that ............ but not if the 'missing' £250 was saved somewhere else at above 4%.