Just want to run a savings idea I have by MSE users...

ninetynine

Hi

I am thinking of doing something and was wondering if I could have some objective feedback please.

I have seen that Quidco are offering £70 cashback for people opening a NationWide FlexDirect Current Account. And they do the 5% one-year interest on balances up to £2500.

I don't have £2500 that's not already tied up somewhere to move into that account but I don't want to waste the one-year bonus. I am thinking about removing an old ISA which has £2500 that is with Santander at 3% (variable inc bonus, bonus rate drops in September). Is it worth losing the tax-free status for a better rate of interest (4% as a basic-rate taxpayer)?

marathonic

I suppose it depends on your expected savings inside the ISA wrapper for next year. If you don't expect to use the £5,760 allowance (it'll rise slightly next year), you could withdraw it for the year and pop it back in next year.

Another option is that, as far as I'm aware, Nationwide offer a 5% rate OR a 12-month interest-free overdraft. If you haven't used this years ISA allowance, you could throw the entire overdraft into an ISA for the year.

ctdctd

Don't forget you need to cycle £1000 per month through the Nationwide account to get the 5%

gkerr4

isn't the santander 1-2-3 better - 3%, but upto £20k.

the nationwide one isn't worth the hassle for 5% on just 2500 imo.

gkerr4

oh also - personally, i'd keep the tax free shelter on your current £2500 - i think it is good practice.

finally, and quidco do £55 cashback on the 1-2-3 also

YorkshireBoy

gkerr4 wrote: »

the nationwide one isn't worth the hassle for 5% on just 2500 imo.

Bearing in mind you can hold 4 accounts, it's 5% on £10K. Is that worth the hassle?

Personally I have 3 of them, and I'm planning on dumping the £7.5K total O/D facility elsewhere...and making circa 3% on their money. Just dipped my toe in the water this month for a couple of days. If I don't incur any charges the whole lot will go elsewhere for the remaining 11 months.

Thrugelmir

marathonic wrote: »

OR [/B]a 12-month interest-free overdraft.

Fee free not interest free.

grizzly1911

YorkshireBoy wrote: »

Bearing in mind you can hold 4 accounts, it's 5% on £10K. Is that worth the hassle?

Personally I have 3 of them, and I'm planning on dumping the £7.5K total O/D facility elsewhere...and making circa 3% on their money. Just dipped my toe in the water this month for a couple of days. If I don't incur any charges the whole lot will go elsewhere for the remaining 11 months.

Good luck.

I am sure any penalties will be harsh if you don't meet the conditions somewhere along the line.

They must be mad and desperate.

YorkshireBoy

grizzly1911 wrote: »

I am sure any penalties will be harsh if you don't meet the conditions somewhere along the line.

50p per day per account, so £30 a month (charges for two of the accounts) if they apply their 'only one offer' condition.

I'm gambling they won't/can't/don't, but just to be on the safe side I've spent 3 days in debit this month to test the water. Cost will be either (50p x 3 days x 2 accounts £3...or nothing! Sometimes you have to speculate to accumulate.

mucgoo

Providing its absolutely certain your'll have the ISA limit available to move it back in next year.

Assuming an 8% yearly return a £10,000 ISA's versus non ISA'd investment is £12,000 better of after 20 years as a basic rate taxpayer.

ninetynine

gkerr4 wrote: »

isn't the santander 1-2-3 better - 3%, but upto £20k.

the nationwide one isn't worth the hassle for 5% on just 2500 imo.

I already have the account (with £55 cashback!) but don't have that much money to put into at the moment - the only money I can play with at the moment is the 2500 from the ISA.