Online savers

BSingh

I have been recently setting up different bank accounts and regular savers. I have noticed that it is probably useful to have Online savers with each bank account (providing there are no penalties for having them) as sometimes the interest on current accounts is very poor! So shifting your money from the current acount to the online saver for 2-3 weeks for an average rate of say 3% or 4% might be worth it!
(e.g. Barclays E-Saver, HSBC, Lloyd, etc)

Just a thought... :rolleyes:

tom188

Yes
Based on the length of time before you pay you can work out whether the C/A provider's savings account or Icesave/Icici etc provides better interest (eg lower rate vs several days lost in the ether).

BSingh

yeah... no point getting external ones.
What I mean is that if you have got current accounts and linked regular savers already set up, you may as well open an online saver with that particular bank. Cuz if you go for ICEsave or ICICI then you would lose 3 days interest (time it takes to transfer)

tom188

If interest rate of external account using formula
rate*(total number of days - days lost)/(total number of days) is higher than the bank online saver then it is still worthwhile using.

Depends if you have the money saved already because the gain will increase with time in the account.