Saving's sense check

greasy19

Hi all, I've a paltry sum of savings which are in a rather low interest ISA, so I've been thinking of ways to try and give it a bit of a boost as it needs all the help it can get. After reading around the site I think I have a plan and was hoping I could have it sense checked:

1. Close my current ISA account and move it into a Nationwide Flex account (offers 5% interest) - I don't think there any issues in closing my current ISA.
2. Keep the Nationwide flex account topped up to it's max (£2500) or as near as I can!
3. When it gets to the maximum £2500 @ 5%, move the excess back into an ISA (was thinking a Coventry ISA @2.25)

If this seems sensible, I have only one question, if the Nationwide account goes over the allotted £2500 do I still earn the maximum interest on the initial sum and the lower rate for anything after. Eg, if I had £2600 would £100 get the lower interest rate but the remaining get the higher rate? I think that's how it works judging by their site: "In plain English this means, you'll earn interest on the first £2,500 of your balance each month but you won't get any interest on any part of your balance over £2,500."

Many thanks.

CLAPTON

greasy19 wrote: »

Hi all, I've a paltry sum of savings which are in a rather low interest ISA, so I've been thinking of ways to try and give it a bit of a boost as it needs all the help it can get. After reading around the site I think I have a plan and was hoping I could have it sense checked:

1. Close my current ISA account and move it into a Nationwide Flex account (offers 5% interest) - I don't think there any issues in closing my current ISA.
2. Keep the Nationwide flex account topped up to it's max (£2500) or as near as I can!
3. When it gets to the maximum £2500 @ 5%, move the excess back into an ISA (was thinking a Coventry ISA @2.25)

If this seems sensible, I have only one question, if the Nationwide account goes over the allotted £2500 do I still earn the maximum interest on the initial sum and the lower rate for anything after. Eg, if I had £2600 would £100 get the lower interest rate but the remaining get the higher rate? I think that's how it works judging by their site: "In plain English this means, you'll earn interest on the first £2,500 of your balance each month but you won't get any interest on any part of your balance over £2,500."

Many thanks.

nationwide Flex account pays zero interest
nationwide flexplus pays 5% on the first 2500

so if you had 2,600 in the account
2,500 would pay 5%
and 100 would pay zero

greasy19

Thank you, I thought was the case. For extra clarity I did in fact mean the Nationwide FlexDirect

ColdIron

Why put the excess in a low paying ISA? You could put it in a TSB Plus at 5% up to £2,000. NB The FlexDirect reverts to 1% after 1 year

greasy19

Bingo! And that's why I posted first, great thought, thanks!

ffacoffipawb

CLAPTON wrote: »

nationwide Flex account pays zero interest
nationwide flexplus pays 5% on the first 2500

Wrong.

Flex Plus pays 3% and costs £10 a month. Rate does not drop after 1 year.

Flex Direct is the account that pays 5% but it drops to 1% after a year.