Regular Savings Accounts

in Savings & Investments
113 replies 10.9K views
MSE_MartinMSE_Martin MoneySaving Expert
8.3K Posts
This discussion relates to the following article Regularly Beat the Best Savings Accounts

To discuss it or ask a question click reply.

(note this article has been updated since the discussion was started, so some of the earlier posts here may be out of date)
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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Replies

  • SystemSystem Forumite, Community Admin
    177.9K Posts
    10,000 Posts Name Dropper
    Forumite
    This is the place to put your comments or ask your questions
    Hi Martin, How to invest a lump sum? I am a bit confused, this is the way i read it. you put £250 in #1 account, after a month you transfer the £250 into #2 account but at the same time there is an other £250 going into #1 account so at all times there will be £250 in #1 account so by the third month there will be £250 in #1 account and £500 in #2 account, there by making interest on both accounts of £1000 interest. Have i got it right or not? ??? Anything to do with banking does my head in. ;D
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K Posts
    Noooooo :)

    OK.

    Account 1: ING Direct 4.3%
    Account 2: Leeds & Holbeck regular saver

    You have £2000 to invest

    You put £250 in Account 2 and the remainder in account 1

    Every month you transfer £250 (max allowable) from account 1 into account 2. The only thing to be careful of is that you must ensure is that once you've nearly spent up the initial lump sum - you keep enough back to make the minimum monthly payments.

    Does this make sense

    martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • I have considered the ING and the Leeds and Holbeck accounts - l think the L+H account is the one l would go for as the withdraw limit does not bother me.

    My gf and l are going to start saving for a car next month - £300 per month between us.  I want to find the best place to put the money.  I currently have an ISA with about £3250 in it.  I think it's currently only paying 3.64% tax free.  

    Questions l have are:

    1)  Would l benefit from transferring the ISA money into the ING account and save monthly into the ING account while transferring into the L+H account as suggested to Ernst?

    2)  Should l just save into the ISA and build on what l have there instead of opening a L+H account at all?

    3)  Would it be best if l kept the ISA (but moved it to a higher interest one) and opened a L+H account for the monthly savings?

    Please let me know you wonderful group of money saving gurus.
    Sense is not common.
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K Posts
    I am assuming you are both tax payers - in which case a cash ISA for safe savings is the first place to put your money - as 4.2% (best paying instant access ISA) is a lot better than a taxed 5%.

    So push as much as you c an in this years cash ISA (is your £3k in this years or last years) and the rest into Leeds & Hoblbeck.

    As a note - read my cash ISA article and it explains how you can transfer your existing cash ISA to a new provider that pays more

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • Excellent - thanks for replying so quickly Martin.

    I have not used this years £3000 allowance yet - so l will take full advantage of that.

    I think l read that ISA article a while ago - l'll go and refesh my memory and make the tranfer asap.

    I WILL be buying your book!   ;D

    (and recommending it to everyone)  ;)
    Sense is not common.
  • 1jacks641jacks64 Forumite
    171 Posts
    Forumite
    I have an Abbey National e-saver account which I have had now for 7 months. I think I am right in saying that I now longer receive the special bonus that people get if they have had the account for less than 6 months.

    Is there anywhere else that pays a higher gross interest rate than one I am getting now? I am particulalrly interest in ISA's but also savings accounts.
  • laminkilaminki Forumite
    140 Posts
    check out the best buys section of this website (or any Sunday newspaper)
  • alaredalared Forumite
    4K Posts
    A good website for daily savings rates and best buys is https://www.moneyfacts.co.uk
    Best hold fire until early August though when most providers are expected to lower their interest rates.
  • SystemSystem Forumite, Community Admin
    177.9K Posts
    10,000 Posts Name Dropper
    Forumite
    How to invest a lump sum?

    One final tip, to invest a lump sum using these schemes, put the money first in a standard savings account. Then set up monthly payments from it to the Regular Savings Account,

    How do you set up monthly payments from a savings account (such as ING) to the Regular Savings Account. Saving acounts don't normally provide for bankers orders.
  • laminkilaminki Forumite
    140 Posts
    ING do allow this. Refer to the original article. its not flawed or incorrect and is well researched. Martin's not been wrong so far
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