how can I earn £100 per month interest?

Savingdad

So I am looking for ways to work out how much and where I need to put away money so I can earn £100 interest per month.
Its possibly a hyperthetical question but I'm looking to see if I can cover the morgage interest with savings and hold the capital rather than overpaying the morgage.
I have 2 TSB accounts fully funded which I believe will give me £6.88 a month each, I have a Halifax rewards and will open a second to give me £10 so that should be £23.76 so nearly a quarter of the way there.
Can anyone point me to how much a tesco 3 % account will pay and santandare 123 please

edinburgher

Are you single and do you pay basic rate tax? Not hitting on you - a S123 acc with £20k in it will pay c. £480/year after tax, £40/mth. If you're in a couple, you can have one each...

Savingdad

Sorry, I'm married and a basic rate tax, my wife has an appalling credit rating and is rubbish with money so I need to do this in my own name and accounts.
I'm not digging at my wife, she will admit the same, she has CCJ, had a DRO, has defaults and alsorts as well as maxing out her vanquis card and amigo loans lol.
She has her money and does as she wants at the moment hence the name.
The point is I currently massively over pay on my relatively cheap morgage but if I can earn the same monthly interest than I pay I can cut my over payments and earn more whilst still building up capital to repay when the interest rate rises.
I thought it was impossable until I worked out I only needed £100 a month interest and rewards to actually be better off saving my overpayments.
Its only a few quid either way a year but adding over 4k extra to savings each year would be nice

sentinal01

Hey all Exactly the same question was mine. Please solve my problem.

edinburgher

Basically you're looking at £40k @3% gross. If you can get there, you're laughing.

Savingdad

Thanks, I can see how close I can get in a year I think and go from there.
2 Halifax extra accounts will go as a bonus
2 TSB @2k each
2tesco accounts with 3k and
santander @20k is the first 30k and until I get that much stashed away I can look for more places to stash it.
Thanks for the tip

Eco_Miser

Club Lloyds 5k (4%) 3 BOS Vantage 5k each That's another £20k

Savingdad

Thanks, just been looking up the Lloyd's one, that would give me access to the saver account that I could divert the morgage overpayments into there to collect the interest.

Archi_Bald

savingdad wrote: »

Thanks, just been looking up the Lloyd's one, that would give me access to the saver account that I could divert the morgage overpayments into there to collect the interest.

There are regular saver accounts that pay better interest than Club Lloyds - HSBC, FD, M&S, a total of £800 a month @ 6%. Access for withdrawals is better at Lloyds though.

Savingdad

Is there any conditions on opening those account though?
I will look them up but its late but I knew about the Lloyd's one cos in was looking at the club Lloyd account.
If I go down this route I won't be to worried about the access to the savings account because I will probably have about 20k stashed in current accounts.
Thanks for the tip though.

Archi_Bald

M&S and FD pre-req current accounts are reasonably straight forward to open. Both also offer a switching bonus (so worth switching spare accounts)

HSBC needs £1,750 a month to go into the pre-req current account and can be long winded to open as you have to do it on the phone or in Branch