Interest

dicky73

Hi

I have spent the last couple of days looking at the best accounts for some money I inherited. Have I gone over the top opening seven just to get the best deals? (Or what I thought were the best deals). Otherwise this money would have been in an account with less that a percent interest doing next to nothing.
I have put:

2000 in tsb classic
2000 in tsb classic
5000 in halifax reward
5000 in halifax reward
5000 in halifax reward
5000 in club lloyds
5000 in santander 123

Have I done the right thing or made a real pigs ear of it?

Thanks.

eskbanker

No need to leave large sums in Halifax Reward where the interest rate doesn't justify this, you just need to do the bare minimum to claim their fiver and would be better leaving the money spending most of its time in account(s) with better interest, such as Nationwide FlexDirect and Clydesdale/Yorkshire (or even in the 123).

butterflymum

Did your Santander 123 already have £15,000 in it so you could only therefore add £5,000?

dicky73

I missed the bus with the santander one, could have put 20 in there as you say.

I meant to say BOS and not Halifax. Thanks for your reply. I did also open the saver reward with 10 pounds having switched to it also. That should be another 100?

butterflymum

As BoS rate, at moment, is same as Santander 123 rate, then the 3 x £5000 should earn same for you anyhow.

Some other thoughts:

Have you remembered to switch on paperless statements for both the TSB accounts?
And remembered to ensure the 123 is funded within its 'funding month' rather than 'calendar month'?
The Club Lloyds has an associated Club Lloyds Monthly saver at 4% for 12 months (max £400 deposit by SO per month) which may be worth considering too.
Also have you rememberd the Club Lloyds DD's need to pay out every month, whereas Santander 123 ones just, at present, need to be 'active' on the account, even if not paying out monthly?
If the accounts are all filled to their maximum interest earning balances, do you have an account to 'skim off' the interest to each month?

dicky73

Thanks for this butterflymum, I had forgotton to switch tsb to paperless but have just done it now.
I have, I think, got things running as you have advised, but wish I had made a papertrail of what direct debits go with which accounts! It all seems a blur at the moment. I had not thought about an account for skimming off the interest, but may use the Tesco account that I set up for one of my direct debits. I will no doubt come unstuck somewhere along the line! Thanks again.

knack92

dicky73 wrote: »

Thanks for this butterflymum, I had forgotton to switch tsb to paperless but have just done it now.
I have, I think, got things running as you have advised, but wish I had made a papertrail of what direct debits go with which accounts! It all seems a blur at the moment. I had not thought about an account for skimming off the interest, but may use the Tesco account that I set up for one of my direct debits. I will no doubt come unstuck somewhere along the line! Thanks again.

Santander would be my choice for the skimmed interest as you've not maxed that out. Tesco I think only pays 1%.. though they have a current account launching soon so that might be another to open!

Archi_Bald

knack92 wrote: »

Tesco I think only pays 1%..

Tesco upped their Internet Saver rate to 1.35% AER today - new accounts only, and includes 0.6% bonus for 12 months.

Bit of a strange move since nobody else is upping rates yet. Even Tesco themselves haven't upped the rates for any of their other accounts.

knack92

Archi_Bald wrote: »

Tesco upped their Internet Saver rate to 1.35% AER today - new accounts only, and includes 0.6% bonus for 12 months.

Bit of a strange move since nobody else is upping rates yet. Even Tesco themselves haven't upped the rates for any of their other accounts.

Thanks for that. Not too concerned to be missing out on that increase!

Ken68

You could skim off the TSB interest using the debit card.