Club Lloyds vs Santander 123 vs isa

robert_wynne_jones

First off I’m rubbish at managing my money! Disclaimer out of the way… I’m looking for some advice on where to put my money.

I currently have 2 accounts, Club Lloyds and a cash saver isa with them.

The first question I have is - is it worth putting my savings (£6k of which are in my isa) into my Club Lloyds account? Although I won’t be able see a a clear split between my savings and monthly pay, if there’s a big benefit then that’s fine.

The other question is, does Santander’s 1-2-3 account beat both of them?

kidmugsy

To get the 4% p.a. at Club you need to keep your balance between £4k and £5k, have 2 monthly Direct Debits (I think) and pay in £1500 p.m. That 4% p.a., even after tax at 20%, will doubtless beat your ISA by miles.

If you've got spare cash after that Santander would do but only if you took advantage of cashback off bills. Otherwise you can get 5% p.a. at TSB and at Nationwide.

redux

From seeing a few other discussions like this, I'd say:

there aren't any decent cash ISAs

TSB Classic Plus 5% on up to £2000

Nationwide 5%, just for first year

Club Lloyd's 4% on between £4000 and £5000

use those before Santander's 3% on £3000 to £20,000

there are some monthly savings accounts which might be worth looking at, some for 12 months, some open-ended, from 6% to 3%

robert_wynne_jones

Wow... I've been using my Club Lloyds all wrong!! What if you put in more than the £5k? It'll be tricky to keep it between 4/5 otherwise.

I'll have a look into tsb and Nationwide. Thanks both.

redux

If it goes above £5k, you still get the interest on £5k, but nothing above.

So shunt it out to another account somewhere else.

If the aggregate balance across the chosen bank accounts is gradually increasing, then that might be where a monthly savings account comes in too.

badger09

As you already have Club Lloyds, you can open the Club monthly saver. Up to £400 per month @ 4%.