Staggered interest or all cash in one account?

bodmil

I suspect this is down to personal preference but thought I'd ask in case I'm missing something...

I have about 10k doing nothing currently, and I have anther 10k due to mature from a one year bond in July. Is there any sense to wait until July to put them together so that I get the interest from that account in one go as opposed to two staggered payments?

Aside from the obvious potential rate changes between then and now, are there any other factors I should take into consideration?

Baldur

Personal preference, the interest on 2 x 10k @ 3.5% (for example) is the same as 1 x £20k, albeit that the interest will be paid on different dates.

kidmugsy

Does anyone offer a higher interest rate on sums of £20k? Is it better than any rate you can get on £10k?

bodmil

No that I can see Kidmugsy. It just seems a bit of a hassle to get bits of interest here and there, then again quite nice to get a regular flow of extra cash. Also if I need to use it for a deposit I'll have to wait for all the bits to mature, so I'll have to wait at one point or another.

I don't suppose it's here or there really, but I will look out for higher interest for larger amounts.

Baldur

bodmil wrote: »

No that I can see Kidmugsy. It just seems a bit of a hassle to get bits of interest here and there, then again quite nice to get a regular flow of extra cash. Also if I need to use it for a deposit I'll have to wait for all the bits to mature, so I'll have to wait at one point or another.

If that's the case and you intend to deposit the matured funds into a fixed rate/term account, why not deposit the maturing funds in the best rate instant access account until your July funds become available and then deposit the full amount into a fixed rate a/c?

As you said in your OP, the danger of this is that rates may have reduced by July (or they may have increased).

bodmil

Yeah it's earning as much as it can in various instant accounts at the moment, there's just always the pressure of better rates to do something with it. But it's always going to change, it would just be nice to only have to worry about rates once a year!

The bonus is that the Vantage change will coincide with one bond ending so that's two amounts sorted at once!