Really optimising interest from banks

Alex92_2

Now im trying to toss up the idea to as what is better.
1) Use 2 monthly savers (6% First Direct and 4% HSBC) and then pay leftover money into Santander 123 Account.
250+300 = £550 (monthly savers would require)
£140.08 = Monthly Interest
£550 - £140.08 = £409.92 (If I put interest into MS each month)
Saving £1500.
£409.92 (amount needed) - £409.92 (Monthly Savers) = £1090.08

So, would it still be worth it to open up 2 monthly savers, one at 6% (already open) and another new one at 4% and then deposit £1090.08 each month into a top savings account (e.g. Santander 123 3%), or would it be better to save £250 a month from not havnig 4% HSBC MS and deposit 1090.08 + 250 into the 3% account.

My mind is boggled at how is the bset way to work this out??:mad:

Surely *UPDATED, thanks to innovate*
£250*12(months)/2(yearly average) = £1500

1) 2.40% (Best 3% account) of £1500 = £38.86 PA, £3.24 PCM

2) 3.20% (4% HSBC Monthly Saver) of £1500 = £51.75 PA, £4.31 PCM

3) 4.80% (6% First Direct Monthly Saver) of £1500 (for comparison, even though its £1800) = £92.93PA, £7.74 PCM

Quite a big difference between 2 and 3, but not a great deal of difference between 1 and 2. For the sack of £12.89, I really dont think I can be bothered to go through the effort of setting up a new bank account and have the faff of transferring all the money around for an extra £1.07 a month, despite the thread title.

Thoughts?

innovate

Your calculations for the Reg Savers look wrong. Best use the MSE Reg Saver calc to arrive at correct numbers.

Alex92_2

innovate wrote: »

Your calculations for the Reg Savers look wrong. Best use the MSE Reg Saver calc to arrive at correct numbers.

Oh yeah. Well spotted. I've updated them, but only makes a 7p difference to interest per month between 3% account and 4% monthly saver.

Alex92_2

Is it safe to say then, that if I have the following banks and accounts - that I have taken full advantage of every reward/high interest/tax free account there is, for now. (excluding S&S because I need access to money after around 3 years).

Lloyds TSB Classic Vantage x3 4%
Nationwide Flexdirect x1 (for now) 5%
Halifax Reward account £5PCM
First Direct 1st Account £100 Cashback
First Direct Monthly Saver 6%. (300PCM in)
Santander 123 Account 3% + £55 Cashback
Santander 2yr Fixed ISA (if Guardian is correct) 3% (£11400)
HSBC Current Account + Monthly Saver 4% (250 PCM in).

deleted.

innovate

There's nothing unsafe about having several accounts with UK financial institutions that offer FSCS protection as long as you stay inside the protection.

Whether you would want to publish on an open Internet forum what bank accounts and how much money you have is another matter.

Alex92_2

innovate wrote: »

There's nothing unsafe about having several accounts with UK financial institutions that offer FSCS protection as long as you stay inside the protection.

Whether you would want to publish on an open Internet forum what bank accounts and how much money you have is another matter.

mmm deleted it that bit. Just kept the relevent parts about accounts now.

I thought FSCS protection was £85K per account, or at least per bank? Didn't realise it was on ALL your savings?!

bsms1147

85K per financial institution; not per bank and certainly not in total.

innovate

Alex92 wrote: »

I thought FSCS protection was £85K per account, or at least per bank? Didn't realise it was on ALL your savings?!

Might want to read this: http://www.moneysavingexpert.com/savings/safe-savings

socrates

Alex are you a future/wannabe Martin Lewis?

nearlyretired2004

We didn't 'need' a basic bank account but tried to open one for OH to access the 2.75% ISA ...... anyway, looks like 3% ish might be available from Monday elsewhere ....