Nationwide Regular Savings account

noelphobic

I took voluntary redundancy from my job last year and haven't been in paid employment since. Consequently my only income has been the paltry amount of interest I get on my savings.

I currently have the maximum amount in my Santander 123 account and am paying £300 a month into my First Direct Regular Savings account.

I have also been paying £1000 a month into my Nationwide Regular Savings account, drip feeding it from a Santander e saver. The interest payable on the Nationwide account is dependent on the monthly increase in the balance, rather than the amount actually in the account.

As my savings are now being depleted I won't be able to afford to deposit between £500 and £1000 into the Nationwide account for much longer, unless I start drip feeding it from my 123 account. I'd prefer not to do this as the 123 account is paying a higher rate of interest (3% as opposed to a maximum of 2.5% with Nationwide). However, if I pay nothing at all into the Nationwide account I won't get any interest, if I pay a lower amount in than I am currently paying then I will get a lower rate of interest.

Sorry for this being so long winded but confused as to what the best option is:-

a) withdraw some money from the Nationwide account and then drip feed it back in - this would mean I got no interest at all for a month.

b) drip feed it from the Santander account

c) leave the Nationwide balance as it is but start paying a lower amount in each month - as long as I pay in over £100 per month I will be getting a higher rate of interest than I am getting in any of my other instant access savings account.

On the face of it, option B would not be a good idea - I would be transferring money from an account paying 3% interest to one that is paying 2.5% interest. However, that would mean i was getting 2.5% on the whole balance with Nationwide (currently c15k).

Well done to anyone for sticking with this post! i would be really grateful for any advice.

colsten

Perhaps look at moving the lot to other accounts, as you will reach the end of the road on the Nationwide Reg Saver.

You can instantly get more interest in TSB Plus (5% on 2 x £2K) and Club Lloyds 4% 5K). When you have the Club Lloyds, you have access to their 4% Regular Saver, £400 a month.

Then there is the Newcastle BS Big Home Saver, open to everybody. Max £1,250 a month, and I think it is 2.55% in any month you make a deposit and no withdrawal.

There is also the Tesco current account, 2 x £3K, 3%.

So no problem lifting the entire £15K out of Nationwide - but perhaps do it on the 1st of a new month, else you have lost a month's interest.

noelphobic

I don't think I'll be able to get a new current account as I'm not presently in paid employment.

It is something I'm considering for if/when I do get a job though.

Steve_xx

noelphobic wrote: »

I don't think I'll be able to get a new current account as I'm not presently in paid employment.

It is something I'm considering for if/when I do get a job though.

I'm wondering if you could possibly apply for a TSB Cash account, then perhaps upgrade it, possibly online, to the Classic Plus account?

noelphobic

Steve_xx wrote: »

I'm wondering if you could possibly apply for a TSB Cash account, then perhaps upgrade it, possibly online, to the Classic Plus account?

Wouldn't that still be dependent on me having a job though?

Another option I'm considering is drip feeding my ISA savings into a higher paying regular savings account. It doesn't look likely that I will be a taxpayer this year anyway. I've got about £1500 in an previous year's ISA with Birmingham Midshires and the bonus interest rate has recently gone down. Also got some money in a Nationwide ISA and the rate on that is due to reduce at the end of the year.

I realise that once I take it out of an ISA it will lose its tax free status but I doubt I will put the maximum annual amount in an ISA in the foreseeable future, if ever.

Steve_xx

Well it might be worth a try if you're not worried about credit rating hits etc?

colsten

Are you old enough to be retired? I know some very young retired people :cool: You do not have to be in paid employment to be accepted for a current account. Many people who play the multi-account game are in fact retired people. You just need to have an income, and it doesn't matter where that income comes from. E.g. it could be from your partner paying you £2,000 a month etc etc etc

Steve_xx

colsten wrote: »

Are you old enough to be retired? I know some very young retired people :cool: You do not have to be in paid employment to be accepted for a current account. Many people who play the multi-account game are in fact retired people. You just need to have an income, and it doesn't matter where that income comes from. E.g. it could be from your partner paying you £2,000 a month etc etc etc

An interesting concept. Well done to you for the suggestion. I suppose there's nowt stopping partners transferring monies tween eachother every month for just this purpose.

ab56

Myself and OH are both retired under 60years of age and have had no problems opening the multitude of current accounts out there (not in receipt of any benefits, living off 'interest').


Re the Nationwide Regular Saver - we are contemplating closing ours but waiting until interest paid at end of October; as more interest receivable on current accounts.

noelphobic

colsten wrote: »

Are you old enough to be retired? I know some very young retired people :cool: You do not have to be in paid employment to be accepted for a current account. Many people who play the multi-account game are in fact retired people. You just need to have an income, and it doesn't matter where that income comes from. E.g. it could be from your partner paying you £2,000 a month etc etc etc

No, I'm not retired - although it's beginning to feel like I'll be well past retirement age before I get another job! I don't have a partner either - I would consider it if I could get one who'll pay me £2000 a month!

I could take my company pension in November if I wanted to but that will only give me an income of around £300 per month. I'm intending to leave it longer if possible.

B_G_B

noelphobic wrote: »

I don't think I'll be able to get a new current account as I'm not presently in paid employment.

It is something I'm considering for if/when I do get a job though.

I have been unemployed for approx 30 months. I took redundancy due to ill health. For the first 12 months I had no income at all (living off redundancy). During that period i opened 7 current accounts. In the last 18 months I have received DLA and have opened a further 7 and done 2 switches for the bonus. I did get asked by Yorkshire bank about funding the account and told the CSR that it would be funded from another account - no problem. All applications have been made on line / phone. The only very minor knock back was when Lloyds / TSB split. I had existing accounts with Lloyds but wanted to open some TSB Enhance accounts. I received a letter asking me to go to branch where they would be able to sort it. I think that this was more to do with them being inundated with applications at the time. I seem to remember on these forums a number of people receiving a similar letter. Anyhow, I left it a few weeks and reapplied online - no problem, and have since opened TSB Plus accounts as well. I have always referred to myself as a homemaker with either £0 income, or latterly I have input my DLA allowance, normally in the additional income box if there is one. In short, having no income / limited income has never been a problem opening current accounts.