Drip-Feeding?

DeanMB

I currently have two NW Flexdirects and one FD First Account. Until I opened the First Account, I was unaware that FD offer a 6% regular saver.

I'm now thinking that I should take advantage of this and keep my First Account open. My problem is that I'm unlikely to have enough of an income to use my second FlexDirect AND the regular saver.

If I were to concentrate on filling the FlexDirect, could I set up a SO to fill the reg saver with £300 per month? Then I'd technically be getting 5% and 6% on every £300 I put into the FlexDirect each month?

Would this actually work the same as it does for savings accounts?

YorkshireBoy

DeanMB wrote: »

If I were to concentrate on filling the FlexDirect, could I set up a SO to fill the reg saver with £300 per month?

Not directly. It'd have to go into your 1st account from where you'd have a standing order to your regular saver.

Then I'd technically be getting 5% and 6% on every £300 I put into the FlexDirect each month?

Interesting assumption. Are you seriously expecting 11% on your money?...or have I misunderstood?

What you'd make is 5% AER for the time your £300 was in the FlexDirect account and 6% AER for the time the same money was in the regular saver.

Would this actually work the same as it does for savings accounts?

Sorry I don't know what you mean here?

rb10

Parts of your post are confusing me, but I think what you are asking is:

"Is it worth me opening a First Direct regular saver account at 6% when I already have two Nationwide FlexDirects at 5%?"

If you were to put the full £300 into the regular saver, then over a year, you'd earn around £15 after tax more than just putting it into the FlexDirect account.

It depends on whether the extra hassle is worth it for the £15 benefit.

pqrdef

And the £15 will evaporate if you leave money sat sitting in the First Direct current account waiting to go to the Regular Saver, because you're losing 5% every night that the money could have been in the FlexDirect.

Could be tricky, especially using Standing Orders. Depends how much money you keep in the First Direct.