Advice on what to do with savings

stiggles_2

I have around £10,000 in savings and I'm trying to decide what to do with them.

I'd like to keep some of it fairly accessible as my partner and I have recently split so perhaps an easy access ISA? I was thinking the nationwide 2.33% NISA but it only allows you to add an initial deposit of £1250. Whereas I'd prefer to start getting the benefits straight away for the whole lump sum.

I wouldn't mind investing some of it (this isn't something I have experience with though).

I feel a bit lost at the moment, at the moment it's sitting in an account which has a pretty low interest rate!

Mojisola

Santander 123 - at least while you explore other possibilities - that way it's earning 3%.

stiggles_2

Thanks, I just had a quick look but that looks like it is a current account so I'm not sure if it would be suitable.

I've currently got a joint account with the ex where all the bills for the house come out of. The plan is to keep the house for the foreseeable future and I'd get a lodger in to cover some of the costs. So for now I'd prefer to keep this account rather than setting up a new one.

Mojisola

stiggles wrote: »

Thanks, I just had a quick look but that looks like it is a current account so I'm not sure if it would be suitable.

I've currently got a joint account with the ex where all the bills for the house come out of. The plan is to keep the house for the foreseeable future and I'd get a lodger in to cover some of the costs. So for now I'd prefer to keep this account rather than setting up a new one.

You don't have to close the current account you already have.

I've got a 123 account purely to earn interest. You have to comply with the conditions but they're easy to manage.

stiggles_2

Mojisola wrote: »

You don't have to close the current account you already have.

I've got a 123 account purely to earn interest. You have to comply with the conditions but they're easy to manage.

Hmm ok, I think the only thing I would find tricky is the direct debit one - as in my current account (not house related) I only have my mobile phone one! I suppose I could always move one from the joint though?

jimjames

Tsb pays 5% and doesn't need DD setup.

You can get far better rates with current accounts.

Where is the money now?

Mojisola

jimjames wrote: »

Tsb pays 5% and doesn't need DD setup.

Only up to £2k though.

jimjames

Mojisola wrote: »

Only up to £2k though.

2 accounts so £4k. Then Nationwide for another £2.5k and can get 3% elsewhere.

So easy to cover the £10k with better than ISA rates. Or just use the 5% accounts and use an ISA for remainder if you prefer.

Or just using ISAs if you don't want the hassle.

stiggles_2

It's currently sitting in a Natwest Savings account - last year it had a rate of around 1.7% (I think) but I think it's gone down to 0.75% now.

Am I right in assuming I would have to transfer £500 in each month then just transfer it back out?

colsten

stiggles wrote: »

Am I right in assuming I would have to transfer £500 in each month then just transfer it back out?

Yes you are right. If you have 2 TSB accounts, you can just set up a standing order on each for the same day every month, sending £500 to the other one, and you are done.

delmar39

OP - I was in a similar position to you. I had £10k sitting in a top paying ISA, but still low interest. I have opened two TSB Classic accounts and paid £2k into each from my ISA. Also opened a Flex Direct with Nationwide with a further £2.5k from my ISA. I have a flex account (travel insurance is free) and a flex direct. I don't want the hassle of opening anymore, so the rest will go in the Nationwide ISA that you mention 2.33%. I've set up a standing order to pay my two TSB Classics from my Nationwide Flex one day, a standing order from my TSB Classics to my Flex Direct (the £1000 has to be from an external account into Flex Direct), then a standing order from my Flex Direct into my Flex. This happens over three days and I don't go overdrawn. It is quite straightforward with a bit of work, but you will be in possession of a lot of current account cards! Once set up though you get monthly interest, which I transfer into my Regular Saver ISA - so interest on interest