Fixed rate savings bond ending

lagi

Previously on 2.9% with First Direct and new one is 2.5% for the year. Will have £8k to reinvest.

I see they do a regular saver account at 8% with maximum payments of £300 per month for 12 months. Would it be better to put £3600 of the 8k into my current account to pay for the regular saver and the remainder back in a fixed rate savings bond?

This is the only saving i am doing, so if there are any better options available would love to hear them.

calypso_rhapsody

Do take a look at the Savings link at top of page.

But - you can do much better than 2.5% for a year - i think about 3.5% is available. If you can stretch to 18mth Shawbrook are doing 3.9% (unless it's been withdrawn since i last looked).

The idea of holding back £3600 to put into an FD regular saver is a good one - but put the money into an instant access savings account not your current account. You should be able to find one paying somewhere around 3% - though you may not be able to set up standing orders from a saver so you will have to remember to make the transfer each month.

Another thing you could look at is taking advantage of Halifax's reward saver current account - you don't need ot change to it as your main account but you do need to pay in £1000 a month (you can take it out immediately and put it back in a savings account). This will give you £5 per month (that is after dedcution of 20% tax).

Trentenders

...and if you are a tax payer (or intend to be in the future), don't forget to consider fixed rate ISA's,which will offer a better return.

ISA season is almost underway, so better than current offers will be announced within the next month, from a number of providers. Perhaps you could fill one cash ISA now, with the remainder set aside in a savings account to drip feed into hte First Direct regular saver throughout the year*?

*Note: You must have a First Direct current accoutn in order to open their regular saver. If you don't already, then please check the First Direct terms and conditions, as the account charges you a monthly fee, unless you hold a minimum average balance or have a minimum amount paid into it each month (I think £1,500, but don't take my word for it).

lagi

I have a first direct current account and a bonus account. Don't have any isa's, (missed this somehow) looks like i need to let this savings bond finish, use the 8k to look for a good deal isa then what is left will cover the fd regular saver.

Does that sound about right?

xylophone

Assuming the fixed bond ends before the tax year does, you could fill a fixed rate cash ISA for this year (£5340) and start an instant access one next tax year with the balance.
Cash ISA Allowance for tax year 12-13 is £5640.
http://moneyfacts.co.uk/compare/savings/accounts/search/

lagi

Ready to start an isa from the info previously given to me. I was thinking for this years one the natwest e-isa.

http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx

Any problems with this one?

Careful_ly

https://forums.moneysavingexpert.com/discussion/401374


This thread might offer a better option, it is updated on a regular basis by Kazza242 (page 1 for the best available)

psychic_teabag

lagi wrote: »

Ready to start an isa from the info previously given to me. I was thinking for this years one the natwest e-isa.

http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx

Any problems with this one?

Natwest seem to be pulling their usual trick of delaying the start of the bonus until the middle of the month after you open the account. So if you open now, the bonus wouldn't start until the 15th of April.

lagi

Thanks, just applied for the aa one as it was top. As i am getting this in for this year, is that it?

As this was the best at the moment for me, do i have to apply for next years with them or will that be an automatic thing?