Really optimising interest from banks

curlygirl1971

innovate wrote: »

Getting a couple of DDs set up specifically for the current accounts that need it is a doddle. Get some feeder accounts set up once an re-use them as needed. https://forums.moneysavingexpert.com/discussion/4168667

I love it! Thanks!

I give a monthly donation to charity - pick a different one every month - so this is another option that never occurred to me before... Thanks for detailing all that

Alex92_2

Chjaka wrote: »

Between me and my partner we currently have;

Qty 2 x First Direct regular savers @ 6%
(£125 switching bonus each)

Qty 1 x Santander 123 account @ 3% (With £55 cashback)
Qty 1 x Santander E-Saver @ 3.15%
Qty 2 x Santander E-ISA @ 3.5% (due to mature)

Qty 3 x Lloyds TSB Vantage @ 4%
Qty 3 x Nationwide FlexDirect @ 5%
Qty 2 x HSBC regular savers @ 4%
Qty 2 x Co-op current accounts
(£100 switching bonus each)
Qty 2 x Halifax Reward accounts @ £5 p/month
(£100 signing up bonus each)

Qty 2 x Aqua reward cards (3% cashback max £100 each)
Qty 1 x Santander 123 card
(free for 1st year 3% cashback on petrol / 2% at supermarkets)

Excluding the cashback and signing up bonuses we're getting approx £250 a month / £3000 a year in interest, however by far the best financial product we have is an interest only mortgage from HSBC which tracks the baserate + 0.99%. Now that's saved us an absolute fortune.

Hi Chjaka,

Nice little savings pot you have there. The Aqua reward card sound good. I thought if you had a mortgage or premier account with HSBC then you were able to get the better accounts (2.75% ISA and 6% regular savers?).

When your E-ISA with santander matures, perhaps it will be worth you and your girlfriend considering the 2 year fixed at 3% they are offering come 11th March?

I need to weigh up the £££ difference between if I put a lump sum in come April 5th for £5760 and increase my pot to £11,400 and get 3% on it for 2 years fixed. Or get the 2.50% 12 month easy access and put my money elsewhere for the 12 months that will develop better interest rates (Nationwide if you can have multiple interest accounts, Monthly savers etc). Really tough call.

I have my 4% Lloyds accounts expiring on 31st October, so will probably put £22k (max limit) into 123 Santander account, but will still have some money left over, so then I think it could be worth putting 11400 into 2 year fix at 3% because if the next best interest account other than Nationwide 5% or monthly savers is 3% (2.40% after tax) then 3% tax free would be a good deal.

What do you guys think?

thumshie

Santander 123 Current account only pays interest on first £20K, not £22K....

Alex92_2

thumshie wrote: »

Santander 123 Current account only pays interest on first £20K, not £22K....

My mistake.

Chjaka

Thanks Alex,

The HSBC website which lists ' HSBC Premier, HSBC Advance, HSBC Advance (Graduate) or HSBC Passport customer' as qualifying for the higher rates. It honestly didn't occur to me ask whether the mortgage entitled us also but will definitely ask next time I'm in branch.

I was about to open the 2.75% HSBC ISA this weekend but I think I'm going to wait until Monday as Santander are releasing the details of their new ISA rate for 123 Acc holders.

If I were you I would use your full ISA limit even if the interest earned this year works out to be a little less than a savings/current account. The benefit is in the fact that when rates do pick up you'll already have a large sum in a tax free envelope, not still building one, and if things stay lean the larger pot may let you access higher interest rates on tiered accounts. The 3% for two years sounds like at good deal, I may very well end up on it myself.

Alex92_2

Chjaka wrote: »

Thanks Alex,

The HSBC website which lists ' HSBC Premier, HSBC Advance, HSBC Advance (Graduate) or HSBC Passport customer' as qualifying for the higher rates. It honestly didn't occur to me ask whether the mortgage entitled us also but will definitely ask next time I'm in branch.

I was about to open the 2.75% HSBC ISA this weekend but I think I'm going to wait until Monday as Santander are releasing the details of their new ISA rate for 123 Acc holders.

If I were you I would use your full ISA limit even if the interest earned this year works out to be a little less than a savings/current account. The benefit is in the fact that when rates do pick up you'll already have a large sum in a tax free envelope, not still building one, and if things stay lean the larger pot may let you access higher interest rates on tiered accounts. The 3% for two years sounds like at good deal, I may very well end up on it myself.

It would surprise me a lot if having an HSBC mortgage wouldnt qualify you for the Monthly Savers account? Worth asking, like you say though.

The Santander ISA details were released (by accident) on The Guardian money this morning. The HSBC 2.75%, is only open to "premier" account customers and the other accounts that you listed there, so if you werent able to get 6% monthly saver, you wont be able to get 2.75% ISA either. Definitely wait until Monday imo and as you have the 123 account already, i'd probably recomened locking it up fixed for 2 years.

The other option for me, other than putting lump sum into ISA past April 5th, was to still pay in the full amount - just in March 2014 time, so I will still be making the most of my ISA allowence, I'd just potentially get better returns on the same amount of money outside of an ISA.

Only thing, really making me want to put a lump sum down, is that if Lloyds Classic Vantage 4% accounts on £6K go down to say 3%, then I would probably rather stick the £18K from there and £2K elsewhere into the 123 account and have it all in one place. Then I would have a lot of left over money. If the only other best option other than NW 5% and FD monthly saver 6% shoots down to 3% (before TAX) then I should take advantage of ISA limit by having 3% tax free on £11400.

innovate

Alex92 wrote: »

The HSBC 2.75%, is only open to "premier" account customers

You don't have to be a premier account holder to get access to the HSBC ISA at 2.75%.

You're eligible for a Cash e-ISA if you are an existing current account customer, registered for Personal Internet Banking, aged 16 or over, a UK resident and ordinarily resident in the UK for tax purposes. Crown Servants (typically Diplomats or members of the Armed Forces serving abroad and/or their spouses/civil partners) are also eligible.

Source: http://www.hsbc.co.uk/1/2/savings-accounts/cash-isa

nearlyretired2004

But beware, although their 'basic' account is a current account, the Ts and Cs of the basic account say you cant open ANY other account alongside it - which includes the 2.75% ISA (according to branch staff yesterday afternoon) - it has to be at least the current account that you need to fund with £500 per month.

Alex92_2

I must've been misinformed by someone else on here. Never bothered lookign into the HSBC ISA, as I dont have over 15K in ISAs, which is what was needed for the 2.75% interest.

innovate

nearlyretired2004 wrote: »

But beware, although their 'basic' account is a current account, the Ts and Cs of the basic account say you cant open ANY other account alongside it - which includes the 2.75% ISA (according to branch staff yesterday afternoon) - it has to be at least the current account that you need to fund with £500 per month.

That makes a lot of sense - - - someone who needs a basic account is exceedingly unlikely to have 15 grand in an ISA.