I'd like some advice on the right savings account please!

nrps1

I've recently sold my car and accidentally got a bigger loan than needed for my new car, so have about 2-3000 spare. When I say accidentally, I managed to get the car I wanted for about 3000 less than I'd anticipated...

I cannot pay any lump sums into the loan, so am happy to count my losses and save what is left over.

I DO want to be able to take amounts out now and then, perhaps to pay the loan back each month, or maybe not, but would like the possibility of that.

I DO want to have internet banking capabilities.

I am happy to leave the money adding up, it could be there years or I could spend the lot within the year, not sure yet which is why I would need something flexible.

I was thinking of the following that may meet my needs:

ICICI Bank
HiSAVE Savings Account 5.15%

CAHOOT
Savings Account 4.80%

YORKSHIRE BS
Internet Saver 5.10%

and the list goes on. Reason I was thinking CAHOOT is because I could get £26 for simply opening an account with them, which would go towards the interest.

What are everyones thoughts/experiences with the above etc?

Thanks in advance

shazkhan111

birmingham midshires for 12 months 5.2%........... £26 what is that about

nrps1

shazkhan111 wrote:

birmingham midshires for 12 months 5.2%........... £26 what is that about

But can you withdraw when you want and take the lot out if you like, plus get monthly interest?

The £26 is from a reliable cashback site, best not mention the name...

Also I saw the 5.2% but its just an enticer though, goes down after a year, worth taking out with them?

tomstickland

I use Icici HiSave and rate it. Internet banking, 5.1%ish, instant access.

nrps1

tomstickland wrote:

I use Icici HiSave and rate it. Internet banking, 5.1%ish, instant access.

Ok cool, thanks.

Any links where I can get a calculator to give me the final take home amount I'd get according to interest rates/tax etc? Its so that I can work out if the £26 incentive would give me more going with the lower rate account, esp if I end up withdrawing amounts over time?

Cheers

KTF

nrps1 wrote:

But can you withdraw when you want and take the lot out if you like, plus get monthly interest?

BM is annual interest.

nrps1

KTF wrote:

BM is annual interest.

So presumably it would calculate the interest per month according to the amount you have, and then give you the lot at the end of the year, however isn't it better to get monthly so that you get interest on interest?

nrps1

Its worth noting, I already have a Barclays current account, an Abbey graduate account, and a Lloyds graduate and a regular savings account, if that helps anyone's decisions? I don't use the Barclays nor the Lloyds accounts and haven't done for several years, I wonder if I should close them down or keep hold of them for the emergency interest free graduate overdrafts they both have?

tomstickland

Well, A&L have a 5% paying current account with some sign up incentives, so I'd get one those and ditch the Barclays account.

I've got: Barclays current account (unused), A&L current account (used), LTSB prem direct account (used),a First Direct current acount (unused) and an Egg money account (unused).
Come to think of it, I also have a FD savings account (unused), Cahoot savings (unused), Icici savings (used), A&L reg saver (used), A&L savings account (unused) and another A&L savings account (unused) & an A&L Isa (used).

I open and switch accounts whenever I see any advantage in doing so.

Anyway, make sure your normal current account is paying 4-5% and then stick the rest into a savings account paying more, or use your Isa allowance if not used yet.

To work out your interest accrual:
if the gross rate is g%, then the monthly multiplier is (1+g/(1200)
Compounded interest over the year for a monthly payer will be:
amount at end = start_amount * (1 + g/1200)^12
or just use the AER figure since this already includes compounding.

Have you considered stoozing?

nrps1

tomstickland wrote:

Well, A&L have a 5% paying current account with some sign up incentives, so I'd get one those and ditch the Barclays account.

I may consider that

tomstickland wrote:

Anyway, make sure your normal current account is paying 4-5% and then stick the rest into a savings account paying more, or use your Isa allowance if not used yet.

Not sure, I'll check, and I know nothing about ISA's...

tomstickland wrote:

Have you considered stoozing?

Well, I'm not sure if you are referring to some sort of sexual act, or something to do with sleep, so no!!

tomstickland

A cash mini ISA is just a tax free allowance for your savings. So you can have £3K in a savings account tax free.

Stoozing is taking 0% credit card money and putting it into high savings accounts.

I do all my shopping on a 0% purchase card and put the money I would have spent into a savings account.