What to do with £39,000?

badger09

Ryan_Futuristics wrote: »

Yeah

All you have to do is set up 10 bank accounts, we'll label them A to J ... Set up a standing order in A to pay into B and C, set B to pay into E, E then pays back into D and G, then you'll need to wait a day and have a staggered standing order paying back from H into your main account, then just three standing orders coming out of G into I, then wait a day, and you want a standing order coming out of E into C

Then you just transfer your heating and water bills to C, whist setting up a standing order to pay the interest from C into G and H, and after a year, transfer C into J, because the rates goes down to 0.1%, and clear the excess in J by transferring it into a new account called K, which needs three standing orders coming out of it, into B, C and D, then wait a day and E pays into B

Then the tricky bit: you have to get married to yourself so you can set up two addition accounts in C (a husband, wife and joint), then three standing orders can coming out of there into K and J, wait a day then a standing order goes from J into B

After fees, tax and money that gets lost in the system (that even the FBI couldn't track by now) you can expect to reap a COOL 0.1% over inflation :cool::cool::cool::cool::cool:

Ryan_Futuristics wrote: »

My problem with the current accounts swindle is, with everything capped, there are no real long-term benefits to saving ... no compounding, no long-term growth

It's just e.g. £78 from TSB if you put £2k in move £6,000 through it with direct debits ... £71 from Tesco bank

You'd do better grabbing a bucket of water and a sponge and offering to wash your neighbour's dogs

Just out of interest Ryan, where exactly do you keep your 30%/50%/70% (can't be bothered to trawl through your posts for the most up to date %) which you say you are holding in cash until you see a better time for value investing?:cool:

Gadfium

badger09 wrote: »

Just out of interest Ryan, where exactly do you keep your 30%/50%/70% (can't be bothered to trawl through your posts for the most up to date %) which you say you are holding in cash until you see a better time for value investing?:cool:

Apparently in an offshore account...;)

Ryan_Futuristics wrote: »

Offshore, with a purchasing pot in Barclays

^^That thread was, IIRC, the one where he couldn't get his head around multi-accounts and then started his wee obsession with dissing the practice whenever he could.

Archi_Bald

Post #17 in the wedding loan thread https://forums.moneysavingexpert.com/discussion/5186675

Kicks4Free

Thanks for all the replies. I agree that a current account is the best option for me at the moment; though I am also looking to move my money into a better ISA, but one that won’t tie it up.


I will look into those Santander and Halifax accounts but I currently only have one monthly direct debit, and a joint account isn’t an option for me.

Sorry to hijack the OP's thread.

Well I’ve not been able to log back in until now so I’m glad someone was making use of it!

colsten

Kicks4Free wrote: »

I will look into those Santander and Halifax accounts but I currently only have one monthly direct debit, and a joint account isn’t an option for me.

You can create any number of DDs for yourself by setting up a couple of Tesco savings accounts. They pull money from current accounts using DDs.

Keep_pedalling

I really can't be bothered with multiple CAs to store cash I might need access too quickly, so the OP could use my alternative which is to drop it into Ratesetters monthly access option, where I'm currently getting 3.1% on around £17k, and as each loan matures it is automatically lent out again until some is needed.

techno12

colsten wrote: »

You can get 3, 4 and 5% in current accounts for around £50,000. All information is on the site.

That's morally wrong for me. They're meant to be your single current account, not a vehicle to squeeze extra interest by opening a few and setting up direct debits between them.

(I'm warm towards the banks tho, as I jammed out by getting a tracker mortgage a month before the crash. Most people have the opposite view)

I'd just shove some of it in an ISA, and play the stockmarket with the rest (in an ISA, in case you make more than the CGT limit). It's what I'm doing...

colsten

techno12 wrote: »

That's morally wrong for me.

Thanks for giving me, and probably others, a really good laugh! Never thought I would hear the word moral in the context of making the best from your cash savings.

techno12 wrote: »

I'd just shove some of it in an ISA, and play the stockmarket with the rest (in an ISA, in case you make more than the CGT limit).

Lots of people [incl myself] have investments in S&S ISAs, and in SIPPs or other pension instruments. Not so much for the purpose of 'playing the stock market' but for steadily building the wealth needed to retire in comfort. But readily accessible cash forms part of any balance portfolio, and for some people, readily accessible is all that is sensible at a given time. Not to keep that cash in one or more good interesting paying accounts for moral reasons is just seriously un-smart.

YorkshireBoy

techno12 wrote: »

That's morally wrong for me.

Thanks for helping me to continue just a little bit longer making a decent return on the cash element of my finances. Are there any more like you? I certainly hope so!

They're meant to be your single current account, not a vehicle to squeeze extra interest by opening a few...

Why then, do BoS let you have 3 accounts, Santander 3 between two of you, Lloyds 3 between two of you, TSB 5 (OK that one's not official )? Nope. Still not convinced by your argument, so won't be closing the 29 that are not my 'main' account.

and setting up direct debits between them.

You can't set up DDs between current accounts. Did you perhaps mean SOs?

I'd just shove some of it in an ISA

Thanks again.

and play the stockmarket with the rest (in an ISA, in case you make more than the CGT limit).

Me too, knowing around £50K is making a very safe >3% AER.

DiamondLil

techno12 wrote: »

That's morally wrong for me. They're meant to be your single current account, not a vehicle to squeeze extra interest by opening a few and setting up direct debits between them.

Hmmm....
Morals and banks in the same sentence.