When to switch savings accounts?

siber

Hi all!

As the sign says, I'm a newbie moneysaver, and have a question for all the Savings-Hawks out there.

I've got a moderate amount of savings (most of which is Student Loan), which I may need access to in a hurry somewhen in the next few years. As a student, I'm gross registered tax-status, and am currently receiving 5.65% interest on my ICICI account. I also have a NS&I ISA paying 5.8% interest. However, due to inflaton rises, more savings accounts have sprung up since I opened my ICICI account paying more interest; for example, the 5.75% ICESave account mentioned in Martin's Savings Account Article: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1098730527,15721

However, now 've got the ICICI account, is it worth switching for an extra 0.1% rate of interest? I mean, if you swtch every time a better rate comes along, surely you'd have to go through application/opening processes every few weeks. At what sort of increased rate is it worth the time and effort to switch accounts, especially as eveyone's predicting rising inflation and interest rates left, rght and centre at the moment?

KTF

You have to take into account the lost interest when moving the money as well so I wouldnt bother switching for 0.1%.

I would also wait to see what the rates are going to do tomorrow as if they rise (which they probably will) all the rates may change.

kingmonkey

If you have 4000 pounds for 1 year then a 0.05% diff is 2 pounds

Moving that money from a 5.65% account for 3 days costs 1.86 pounds in lost interest.

PS My pound key doesn't work for some reason.

elektra

kingmonkey wrote: »

If you have 4000 pounds for 1 year then a 0.05% diff is 2 pounds

Moving that money from a 5.65% account for 3 days costs 1.86 pounds in lost interest.

PS My pound key doesn't work for some reason.

to insert £ symbol try holding down the ALT key and typing 156. The symbol will appear when you take finger off ALT key

Full list of codes at https://www.lookuptables.com

siber

Hold the phone...

Following today's BoE interest rate increase, NS&I cash ISA has risen to 6.05% AER as of today. Now waiting for ICICI to match the 0.25% rate increase too...

McSaver

I wouldnt move my money out of one savings company to another unless my account that i have falls to around 0.5% behind the number 1 paying interest account on the leading savings table.

Snow_Dog

Approx £30 per annum or 0.5% tends to make me interested enough to move an account.