Nationwide Flexclusive ISA @ 2.25% AER

Archi_Bald

SpideressUK wrote: »

I'd be a bit scared of their condition of paying in £1,000 pm

You don't need to pay it in in one go. 10 x £100 still makes £1,000. You can use the same £100 ten times. Shuttle it to and from your RBS account - - like you did with your £1 earlier today. You know it takes seconds to do.

All you have to do is make sure that a total of £1,00 has been paid in during the month.

SpideressUK

Archi_Bald wrote: »

You don't need to pay it in in one go. 10 x £100 still makes £1,000. You can use the same £100 ten times. Shuttle it to and from your RBS account - - like you did with your £1 earlier today. You know it takes seconds to do.

All you have to do is make sure that a total of £1,00 has been paid in during the month.

Oh that sounds like a really good idea. So I could leave my direct debits all set up like they are in my RBS account and keep his wage being paid in there and then do the £100 "shuffle" 10 x a month but save the £150 a month I was going to put into their ISA into that account instead which means I will earn 4% interest on the £150 instead of what is likely to be 2% off the ISA so £3 in interest a month instead of £1.50 interest a month that sounds like a REALLY good idea! thank you:T

badger09

Probably easier to do £500 twice a month, or £250 4 times a month, rather than £100 10 times .

You just have to remember to do it, or, if you think you might forget - just set up Standing Orders both ways

SpideressUK

badger09 wrote: »

Probably easier to do £500 twice a month, or £250 4 times a month, rather than £100 10 times .

You just have to remember to do it, or, if you think you might forget - just set up Standing Orders both ways

Yes, I was thinking that when his wage comes in (almost the £1K) I could do most of it then and just do the odd £100 in and out extra. However, I notice that the account you mentioned is for the first 12 months of opening it at that rate and since we are not in a position to save the £150 a month yet I will hold back until we are and see if that account or similar is still available then. When you worked out that 5% is 4% after tax did you just do 5 x 22% which is 1.1 so it gets rounded down to 1? Hence the 5%-the rounded down 1% = 4%?

AndyPK

If you hold £3k most of the time in your current account you maybe interested in a Santander 123 account. This pays 2.37% after tax and only requires £500 paying in a month. You would need to move your debits over to make it worth while so the cash back pays the fee.

Archi_Bald

There's zero 0% interest on the 123 up to £3K, and it costs £2 a month. Potential for quite a bit of cashback though.

Archi_Bald

SpideressUK wrote: »

When you worked out that 5% is 4% after tax did you just do 5 x 22% which is 1.1 so it gets rounded down to 1? Hence the 5%-the rounded down 1% = 4%?

Banks automatically withhold 20% of the gross interest (unless you are eligible for gross interest - - are you? http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=nCRoVNw8-lk&formId=835)

So you only get paid out 80% of 5% = 4%.

badger09

SpideressUK wrote: »

Yes, I was thinking that when his wage comes in (almost the £1K) I could do most of it then and just do the odd £100 in and out extra. However, I notice that the account you mentioned is for the first 12 months of opening it at that rate and since we are not in a position to save the £150 a month yet I will hold back until we are and see if that account or similar is still available then. When you worked out that 5% is 4% after tax did you just do 5 x 22% which is 1.1 so it gets rounded down to 1? Hence the 5%-the rounded down 1% = 4%?

Yes, the FlexDirect 5% rate is only for 12 months, but then so is almost every other interest rate these days, unless you can lock your cash away for several years, and even then you can't get anywhere near 5%

Up to you if you want to wait - personally I wouldn't as there is no guarantee how long that rate will be offered on new accounts.

For every day you have money in that account, you'll get 5% (or 4% after tax) on whatever is in there (up to £2500 & as long as you pay in £500 x 2). A bird in the hand and all that

Archi_Bald

badger09 wrote: »

(up to £2500 & as long as you pay in £500). A bird in the hand and all that

£1,000 for the FlexDirect, not £500, Ms badger09 :cool:

AndyPK

Archi_Bald wrote: »

There's zero 0% interest on the 123 up to £3K, and it costs £2 a month. Potential for quite a bit of cashback though.

No they pay interest above £1000

"Interest - on your current account balance:
1.00% AER/gross (variable) on balances from £1,000

2.00% AER/1.98% gross (variable) on balances from £2,000

3.00% AER/2.96% gross (variable) on balances from £3,000 and up to a maximum of £20,000."