advice needed

delboy800

Really dont have a clue about this stuff but i have 20k that i have saved over the past 4 years. Its in a rbs instant access savings account, they sent me a letter saying they are reducing my interest to 0.5%. Last year i earned a total of £112 for a whole year, what should i be doing with this 20k and does that interest sound about right?

DiamondLil

With that amount of money, maybe you should consider some of the high interest current accounts that are available at the moment.
There are lots of threads on here and a guide at the top of the budgeting and bank accounts board.
And have a look at TSB Classic Plus too.

mgdavid

only sensible/simple option for 20k and that's Santander 1-2-3 current account (paying 3%). Do a forum search, loads of threads about the fine detail.

bowlhead99

delboy800 wrote: »

Really dont have a clue about this stuff but i have 20k that i have saved over the past 4 years. Its in a rbs instant access savings account, they sent me a letter saying they are reducing my interest to 0.5%. Last year i earned a total of £112 for a whole year, what should i be doing with this 20k and does that interest sound about right?

Yes that interest does sound about right. £20k for a whole year at 0.5% is £100, before tax.

As your interest has only reduced recently, it's likely you got more than £100 last year, but without knowing how long you had the full £20k in there, what the average interest rate was, and whether that's before or after tax, it's hard to say. But banks don't usually get the calculations wrong so I'm sure it's about right.

The important thing to note is not what you had last year (because the rates have changed anyway) but what is the best rate you could find now instead. As mentioned above, Santander would give you 3% on £20k which is £600 and a lot more than the £100 that RBS are offering. So it sounds like it's time to move it.