How to save £60k

Ewer123

I'm in a very similar position with regards to needing instant access to 60k for a house deposit.

I'm I right in thinking then your combination of banks without the ISA will give you a overall 3.75% rate giving you a £90 a month return on 60K?


Thanks in advance ( Im new to all this )

Prof_FrinkProf

I haven't worked that out yet Ewer. My current seven vantage accounts with £5k in each, pay me around £10 per month in interest per account.

Don't forget about the Halifax account that will pay £100 bonus plus £5 a month too!

eskbanker

Ewer123 wrote: »

I'm I right in thinking then your combination of banks without the ISA will give you a overall 3.75% rate giving you a £90 a month return on 60K?

Excluding the ISA from the above figures leaves £44K in accounts on an ongoing basis (plus £400/month into the regular saver), and by my reckoning the weighted average interest rate comes out at 3.3% (gross return of £1450 on that £44K), or 3.33% if you add in the £104 gross return on the average balance of £2600 in the regular saver.

Edit: forgot about the Halifax £5s, which, grossed up to £6.25 for consistency, increase the return by about 0.16%.

Eco_Miser

Prof_FrinkProf wrote: »

Then I'll bounce £1000 through the accounts that require it on the first of each month

Thanks!

I wouldn't do it on the first of the month, which is the first day of some accounting periods, and the last day of others, except when it falls on a weekend or bank holiday.

hostie

Interesting thread!
Which accounts do you have to make regular payments to? I've opened similar accounts but now need to formulate a plan of what money needs to be flipped through them!

Prof_FrinkProf

Funding and direct debit requirements for each account to trigger interest / waiver fees listed below in bold:

TSB Plus Account 5% £2,000 - £500
TSB Plus Account 5% £2,000 - £500
Club Lloyds 4% £5,000 - With 2 x Tesco £1 DDs - £1500 & 2x DDs
(With Club Lloyds Saver £400 PM) - N/A
BoS Vantage 3% £5,000 - £1000
BoS Vantage 3% £5,000 - £1000
BoS Vantage 3% £5,000 - £1000
Santandar 123 3% £20,000 - £500 & 2x DDs (£2 fee per month but cashback on Direct Debits)
Santandar ISA £26,400 - N/A
Halifax Reward £10 float - £750 & 2x DDs

Scarlett6303

You wont be able to open a second Santander account if you don't have a partner as it has to be a joint account. This is a similar issue to me. I currently have 65K in 123 account & looking to maximise interest. I called Santander to see whether anyway round it. You can have a joint account with anyone over 18 that you can trust with your money !!!!

eskbanker

Scarlett6303 wrote: »

You wont be able to open a second Santander account if you don't have a partner as it has to be a joint account. This is a similar issue to me. I currently have 65K in 123 account & looking to maximise interest. I called Santander to see whether anyway round it. You can have a joint account with anyone over 18 that you can trust with your money !!!!

Even if you were able to open a second 123, that would still only take care of £40K, so chances are it would be worth your while following Prof FrinkProf's lead and getting after a range of other current accounts which would take you closer to achieving your objective!

Archi_Bald

Scarlett6303 wrote: »

You wont be able to open a second Santander account if you don't have a partner as it has to be a joint account.

Your joint account holder doesn't have to be your partner. It can be any adult UK resident that you trust, and who trusts you - a relative, a friend, a colleague etc..

Prof_FrinkProf

Thought I'd revist this thread,

I've almost got everything setup and the money moved to where I want it. I found the Tesco online banking a bit tricky to use at first and it took a few goes to get my second bank account setup but I now have two accounts with them each debiting £1 from my two remaining Vantage accounts. When they do debit the money and my two old vantage accounts "see" the direct debits, I can then upgrade the first one to Club Lloyds and the second to a Halifax Reward account. When the club Lloyds account is up I'll also fund the £400 monthly limit to the club Lloyds saver.

My other issue is that for some reason TSB would only let me have one of the Classic Accounts that pay 5% interest, I called them but they advised I need to go into my local branch, which I will do soon. I did find using them very easy though and I was even able to login to online banking with my old Lloyds details which I was impressed with.

The santander account is working nicely as my current account, I like the online banking and I'm getting the 3% interest rate and cashback on my qualifying direct debits (Vodafone for mobile phone bill and Plusnet for broadband)

So here's how my accounts currently look:

TSB Plus Account 5% £2,000
Old Lloyds Vantage (1 of 4) - Waiting to upgrade to Club Lloyds 4% once DD's are active £5,000
Old Lloyds Vantage (2 of 4) - Waiting to switch to Halifax Current Account once DD's are active (to pay £100 initially then £5 a month)
BoS Vantage 3% £5,000
BoS Vantage 3% £5,000
BoS Vantage 3% £5,000
Santander 123 3% £20,000
Santander ISA 1.3% £22,500

So once I have spoken to TSB and got my second plus account opened, and the two old Lloyds Vantage accounts have had their first two debit's each and I can upgrade/switch them, I think my money will be saved almost as efficiently as possible for instant access. :j

Edit:

In case anyone wants to know, I thought I'd show funding and direct debit requirements along with interest rates on the high interest current accounts I'm using.

TSB Plus Account £500 monthly funding / No DD requirement / 5% interest
Club Lloyds £1500 monthly funding / 2x DD requirement / 4% interest
Halifax Reward Account £750 monthly funding / 2x DD requirement / £100 initial payment then £5 per month
BoS Vantage £1000 monthly funding / No DD requirement / 3% interest
BoS Vantage £1000 monthly funding / No DD requirement / 3% interest
BoS Vantage £1000 monthly funding / No DD requirement / 3% interest
Santander 123 £500 monthly funding / 2x DD requirement / 3% interest & cashback on certain DDs (£2 monthly fee)

Lastly I also have a credit card with Santander which has interest free for 19 months and a £6,000 limit. I may make all my purchases on this, pay the minimum monthly payment and then earn interest on the saved money until the 18/19th month. I believe this is called stoozing?