5% Savings Loophole

caveman38

Thanks for the replies.
I am trying to maximise the interest for my wife's pension fund. Years ago she started to save to attain £100K which I worked out she could draw £5K a year + 3% each year for 20 years assuming she could earn 3%. Attaining the 3% is the problem unless investing in S&S or depositing with some unknown banks.
I came across this idea and see that I can (for her) attain the 3% and a bit more. Obviously it takes a little effort but I can't wait for ever for interest rates to rise.
I have looked at the 5% account tool and see that if I follow that suggestion I would have to set up 12 DD's between us. I'd just about make 6, would it be rude to ask how you guys make up the rest without the £1 charity suggestion. Thanks.

YorkshireBoy

caveman38 wrote: »

would it be rude to ask how you guys make up the rest without the £1 charity suggestion. Thanks.

You could try reading post #312 in this very thread from yesterday.

caveman38

YorkshireBoy wrote: »

You could try reading post #312 in this very thread from yesterday.

I read the first 12 pages without success before I posted - honest

YorkshireBoy

caveman38 wrote: »

I read the first 12 pages without success before I posted - honest

No you didn't, otherwise you'd have see posts 77, 96, et al.

caveman38

I have to confess that I did read those pages but didn't identify the Tesco facility as of benefit - till now.
Whilst I'm pestering you guys, I may as well ask another question.
I am thinking that the best interest that I can achieve on £100K would be £65K in current account savings that would average 3.3% and open another 2 Santander 123 A/C and deposit £35K to drip feed £1450 a month X2 into monthly savers which I calculate earning 4.14% (between Santander & Monthly Savers)
That would get her just less than 3.6% on her total.
1TSB Classic Plus (1)£2,000£50005% (5% net)-£8.33£100£8.33£100
2TSB Classic Plus (2)£2,000£50005% (5% net)-£8.33£100£16.67£200
3TSB Classic Plus (3 - Joint)£2,000£50005% (5% net)-£8.33£100£25£300
4Club Lloyds (1)£5,000£1,50024% (4% net)-£16.67£200£41.67£500
5Club Lloyds (2)£5,000£1,50024% (4% net)-£16.67£200£58.33£700
6Club Lloyds (3 - Joint)£5,000£1,50024% (4% net)-£16.67£200£75£900
7Bank of Scotland (1)£5,000£1,00003% (3% net)-£12.50£150£87.50£1,050
8Bank of Scotland (2)£5,000£1,00003% (3% net)-£12.50£150£100£1,200
9Bank of Scotland (3)£5,000£1,00003% (3% net)-£12.50£150£112.50£1,350
10Bank of Scotland (4)£5,000£1,00003% (3% net)-£12.50£150£125£1,500
11Bank of Scotland (5)£5,000£1,00003% (3% net)-£12.50£150£137.50£1,650
12Bank of Scotland (6)£5,000£1,00003% (3% net)-£12.50£150£150£1,800
13Tesco Bank (1)£3,000£003% (3% net)-£7.50£90£157.50£1,890
14Tesco Bank (2)£3,000£003% (3% net)-£7.50£90£165£1,980
15Tesco Bank (3)£3,000£003% (3% net)-£7.50£90£172.50£2,070
16Tesco Bank (4)£3,000£003% (3% net)-£7.50£90£180£2,160
17Santander 123 (1)£3,000£50023% (3% net)£5£2.50£30
or something like that

and Regular Savers TSB, LLoyds, FD, HSBC and M&S X2


plus the extra 2 Santander A/C's for drip feeding the RS.


Have I got this right, is it too complicated and/or where have I gone wrong apart from not mentioning the Santander fees.


Advice welcome please.

YorkshireBoy

caveman38 wrote: »

Advice welcome please.

There are no Nationwide FlexDirect accounts shown, so that's 5% AER on £7.5K she's potentially missing out on.

colsten

Depending on where you live, you might have access to further Regular Saver accounts, ones that are Branch only. https://forums.moneysavingexpert.com/discussion/608697

caveman38

YB, I thought that seeing as that rate is only valid for 1 year, it wouldn't be worth it for a long term strategy. Or is the strategy to get the most when available.


Colsten. I live in East Essex. Most of the other deals I've seen are Nottingham or to it's north.

masonic

caveman38 wrote: »

YB, I thought that seeing as that rate is only valid for 1 year, it wouldn't be worth it for a long term strategy. Or is the strategy to get the most when available.

Do any of the other current accounts in your list offer a rate that's fixed for that long?

caveman38

masonic wrote: »

Do any of the other current accounts in your list offer a rate that's fixed for that long?

No. I see your point.