Account 'bounce' save plan

lentrix92

Drip feed plan - will this work ?

Plan to swith from Hsbc to FD to take advantage of £125 new account offer. At same time will open the 8% regular saver.

But want to bounce cash into a easy access ac (virgin or post office) as fd ac pays no interest and then 'bounce' the cash again into the Fd 8% regular saver.

Thoughts ?

grumbler

I don't understand all this 'bouncing'. If you mean sending £300 from FD and then back within one month, then even over 30 days this will save no more than 50p, but it is likely to be less than 30 days.
However, I don't see any problems.

sscott5581

You would better apply as soon as according to their website -
Regular Saver Account


Account to be temporarily taken off sale for new accounts from 1 February 2013.

lentrix92

grumbler wrote: »

I don't understand all this 'bouncing'. If you mean sending £300 from FD and then back within one month, then even over 30 days this will save no more than 50p, but it is likely to be less than 30 days.
However, I don't see any problems.

As per Martin's link
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

grumbler

lentrix92 wrote: »

As per Martin's link
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

Well, this is nothing more than just a tool - a calculator.
If you do want to make an extra transfer to save 30p, then it's fine. I prefer transferring all except £300 from my FD account and leaving £300 waiting to get taken to the regular saver.

innovate

grumbler wrote: »

Well, this nothing more than just a tool - a calculator.
If you do want to make an extra transfer to save 30p, then it's fine. I prefer transferring all except £300 from my FD account and leaving £300 waiting to get taken to the regular saver.

The link was supposed to be this one, I reckon: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed

I agree it seems a bit over the top to transfer £300 into a savings account on a monthly basis, and then back into the FD current account in time for the SO to the Reg Saver. Good training for managing multiple accounts and meeting deadlines, though :cool:

The dripfeed concept really is - as described in the article - to put £3.6K into a savings account, and then take £300 each month into the Reg Saver. The calculator on the site will not work out the numbers if you do not start out with a £3.6K lump sum.

grumbler

innovate wrote: »

The dripfeed concept really is - as described in the article - to put £3.6K into a savings account, and then take £300 each month into the Reg Saver. The calculator on the site will not work out the numbers if you do not start out with a £3.6K lump sum.

However, this general concept doesn't have to be followed blindly without understanding. As the salary goes to the FD current account anyway, it doesn't necessarily have to be a saving account that directly 'drip feeds' the regular saving account.

innovate

Yes, I did say "I agree it seems a bit over the top......."

grumbler

It might look like I argued with you, but in fact it was the OP, not you.

dalesrider

grumbler wrote: »

I prefer transferring all except £300 from my FD account and leaving £300 waiting to get taken to the regular saver.

You are missing a further trick....

£250 interest free o/d

grumbler

dalesrider wrote: »

You are missing a further trick....

£250 interest free o/d

I've remembered why I don't use the thick. At the start of the last year they attempted to charge me £25 "Formal overdraft arrangement fees" and I clearly told them where they can shove their "formal overdraft" to.
Although my paper statements still are showing Default Interest Rates 0% for up to £250 overdraft, I avoid using overdraft because I fear they can charge me some fixed fee for using "informal overdraft".