Nationwide Regular Savings account

psychic_teabag

To tackle the original question... because the balance in the NW account is so high, it is almost certainly better to drip-feed from 123 to nationwide to preserve the interest on the latter. It only costs you 0.5% on £500 to gain 2.5% on £15k.

If you were to withdraw money from NW, where would you put it, if your 123 is full. Can you get 1.5% from a normal savings account at the moment ?

At some point, when a few thousand has been transferred over, it would be worth moving it from NW to 123, and then starting again. Need to balance the interest lost in NW for that month against the increased rate from the 123 account, so the more you move, the less interest you lose.


Oh... one thought ... it's the balance increase over the month that matters. Can you move it back out of NW to 123 for most of the month, then back to NW when it matters ? Need to check T&C, but I'm thinking...

move 500 from 123 to NW by the target date to qualify for the 2.5% rate
move it back to 123 for the rest of the month, then
move 1000 from 123 to NW to hit the next qualification date
move it back to 123 for most of the month
move 1500 from 123 to NW
etc

EDIT: it's not clear, but a quick look at T&C suggest that it's the balance on the 1st of the month that matters (for interest rate calc). As long as that goes up by 500 each month, the average balance during the rest of the month is irrelevant. (Obviously the amount of interest will depend on the actual day-to-day balance.) But check for yourself before putting such a scheme into practise !