Whats the best thing to do with our money?

Kev79

Hi guys


I was hoping some of you knowledgeable people could give me some advice. What it is..


I have a reward saver account with Halifax and at the moment, it holds £8300. This saver is currently into it's second year and the interest rate has dropped considerably, since we first opened it. The interest rate is currently 0.5% gross on this account and the interest is due to be paid in October


I also have another online saver account with Halifax which I opened last October. This holds £330 in it at the moment. The interest rate on this account is 1.25% gross and is also due to be paid in October.


For anybody who understands interest and how it works, which saver should I have the most/if not all of my money in to maximize the interest paid in October?


Should I just shift all of the money into the higher rate account now? And if so, considering it's GROSS interest how much should I be expected to receive come October?


If anybody could please help me out it would be much appreciated as all of this stuff confuses me lol )

Eco_Miser

Put your money in the account that pays the highest percentage. The actual amounts don't matter to work this out.
Are you aware that there are current accounts paying between 3% and 5%? That's ten times what the half percent reward saver is paying.

£8300 @ .5% less 20% tax is 83 x .5 x .8 = £33.2 for a full year. If you left the other account for the full year, it would pay £3.30 net.

Kev79

Thank you for the reply Eco Miser.


What are these current accounts that are paying 3 and 5% interest?


Ok so I should move the £8300 into the higher rate account, therefore forfeiting whatever interest that it may have made under the lower rate?

innovate

Unless your accounts are fixed term accounts, which it doesn't sound as if they are, you will get paid interest for every day you had the money in your account. This interest will get paid either on the regular interest payment date, or when you close your account.

You should investigate TSB Plus and Club Lloyds current accounts. Lots of discussion on the MSE forum on both.