Please help me

princess23

Hi everyone, i am like so many others trying to get the best out of my finances but am unsure how to do this despite reading through many pages of infor (simples is me)
anyway i have several lloyds accounts one in joint names (d/d set up for all our bills with o/d), a classic gold account (mine not really used for savings with o/d/), gold saver 0.75% saving £260 per month with just over 3k, an easy saver account 0.75% with 7k , cash isa 0.9% with just over 4k,

i know there are far more better deals out there but so much has been written on how many accounts etc im really confused if someone could write it out for me in simple terms (sorry) i would really appreciate it. thanks in advance

Archi_Bald

Will this help: http://www.moneysavingexpert.com/savings/savings-loophole?

Anthorn

For example ... the only reason to spread savings across several banks is if you think they might go down or if you have an instant access account for emergencies and a notice account /bond for higher interest. If you put the balances together into one account you could possibly get a better interest rate.

In regular savings you could definitely get a better rate. i.e. Nationwide Regular Saver pays 1.85% on the amount you're saving. Please note this is an example and not necessarily the best rate.

Calculate how much you have and shop around for the best deal, comparison sites, ISA, etc.

Archi_Bald

Anthorn wrote: »

For example ... the only reason to spread savings across several banks is if you think they might go down or if you have an instant access account for emergencies and a notice account /bond for higher interest.

One of the best reasons to spread your money about quite widely is the fact that the great accounts have limits.

For example, the max you can get interest on in sole TSB Plus accounts is 2 x £2,000. Therefore, for sole accounts, there is no point keeping a penny more than £4,000 in TSB.

Similar applies to other banks.

princess23

Hi Everyone thank you for those who have taken the time to assist in my question. I am still confused with the fact that as we have the bulk of our money going into the bills account and spring boarding the savings from that into the relevant accounts. How is it therefore possible to open up say two nationwide accounts one for savings and a current account with the minimum payment being paid in each month as this would not seem possible with the money being available to us , am i correct in also saying you have to set up a direct debit with say the nationwide current account and what is the easiest way of doing this as currently already set up with lloyds. Im sorry for all the questions and im sure its an easy answer to most people, but as i said i need it written in simples terms. Oh also one final question the ISA we currently have, we still have this years balance to add to it is it worth leaving it in with lloyds who are paying a very poor % of 0.9 and open a new one with someone else or pool the two amounts together to open up a new one with someone else offering a better %. Phew i hope that all makes sense, if someone could help with all of this i would be truly grateful (in bullet points of possible to make it easier to digest and understand)

eskbanker

princess23 wrote: »

Hi Everyone thank you for those who have taken the time to assist in my question. I am still confused with the fact that as we have the bulk of our money going into the bills account and spring boarding the savings from that into the relevant accounts. How is it therefore possible to open up say two nationwide accounts one for savings and a current account with the minimum payment being paid in each month as this would not seem possible with the money being available to us , am i correct in also saying you have to set up a direct debit with say the nationwide current account and what is the easiest way of doing this as currently already set up with lloyds. Im sorry for all the questions and im sure its an easy answer to most people, but as i said i need it written in simples terms. Oh also one final question the ISA we currently have, we still have this years balance to add to it is it worth leaving it in with lloyds who are paying a very poor % of 0.9 and open a new one with someone else or pool the two amounts together to open up a new one with someone else offering a better %. Phew i hope that all makes sense, if someone could help with all of this i would be truly grateful (in bullet points of possible to make it easier to digest and understand)

Ironic to make that last request at the end of a huge monolithic block of text!

Best thing is to work out how much money you have and which accounts to go for (the list at post #2 should help).

Each account will have its own Ts & Cs about minimum monthly funding, which can easily be handled by simply rotating money between them, either manually or by setting up standing orders.

Many also have a requirement to set up direct debits, which can be either 'real' ones, i.e. payments that you're already making to utility providers, etc, or artificial ones specifically set up to satisfy the account requirements, e.g. to charities or savings accounts.

innovate

eskbanker wrote: »

Ironic to make that last request at the end of a huge monolithic block of text!

So true.

I would recommend the OP catches a breath, gives up the idea that they can, or want to, be spoonfed, and spends some time reading through various posts on the forums (incl the Savings and ISA ones). They should be very to with the cornucopia of information they find on here.

jennifernil

I would start by opening 2 of the TSB Classic Plus accounts (5%) , put £2k in each, register for paperless, and switch the required £500 from account A to account B and back again every month via internet banking.

Then, as you are a Lloyds customer already, get a Club Lloyds account (4%) and put as much as possible (up to £5k) in there. Move 2 of your DDs to the new account. For the £1500 funding, just move £1500 out to your other Lloyds account and back again.

For regular saving, once you get to the £5k, get the Club Lloyds Monthly Saver, it can take up to £400 per month, pays 4%, and you can withdraw if necessary.

Move your existing ISA to somewhere that pays better ASAP.

If you can find somewhere that pays a better rate for "new" ISA money, open that and, if you do want the money to be in an ISA, near the end of the year move some of your savings into it.

However, you have to consider whether it is better to fill the ISA at possibly a much lower interest rate, or keep the money where it gets more interest but is taxed.

Depending on your tax status and amount of savings, it can be better to have your savings earning a taxed 3%, 4% and 5% than sitting in an ISA. Even 3% after basic rate tax is still 2.4% nett, I haven't found an ISA that pays that well with instant access.

With the new higher ISA allowances it would be easy to move larger amounts into an ISA over a short timespan should that change.

princess23

Thank you Jennifernil for your all your help, i am now on the case x:A