£800 a month for 5 years

jimjames

MarkBargain wrote: »

I am not saying this is not a good thing to do, simply that it won't suit everyone. If the OP saved £800 a month for 12 months he'd have £9,600. In year 2 the new regular savers would presumably start at £0 again until built back up so he'd need somewhere to put the £9,600.

Which will easily fit in current accounts. You refer (as have others in the past) to short term high rates, I'm not sure of the definition of short term but I wouldn't call 3 years with no end in sight short term.

MarkBargain wrote: »

There are no higher rates, but the accounts will have limitations when the OP has £9,600 + interest after year one rising to £48,000 + interest after year five. It'll be hard squeezing that lot into many little regular savers!

You don't need it in regular savers, you can use current accounts and still get a better rate than any savings account. Mortgage paid off at 10% pa might still be a good option too if the better accounts get filled up.

MarkBargain wrote: »

I know the banks do credit checks, so I wondered if the banks would allow so many accounts to be open as they all want to be your 'main' current account.

I don't recall seeing anyone with a reasonable credit rating saying they've been refused multiple accounts. I'm a mere amateur compared to some as I've only got
10 accounts at the moment but have switched & closed another 5 accounts this year but it's netted me nearly £1000 for the effort.

JIL

Sorry to hijack the thread but how do you start an account to make best use of the switching bonuses?
I just have one current account, how do I open and close accounts to make the best use of switching bonuses?
Thanks to all.

colsten

You could open one or two what are referred to as donor accounts. These are accounts that you use exclusively for switching. If you need any DDs for the switch, those can be set up with the help of a couple of Tesco accounts.

Huge amount of info about donor accounts and Tesco savings DDs on the forum.

MarkBargain

jimjames wrote: »

Which will easily fit in current accounts. You refer (as have others in the past) to short term high rates, I'm not sure of the definition of short term but I wouldn't call 3 years with no end in sight short term.

Does one of the high interest regular saver accounts offer 3 years + then? I would genuinely be interested in that so long as I could put a decent amount in. I believe the TSB bank account offers 5% but only on £2,000 so that'd only make me £100 a year interest compared to the £60 I'd already get in my Santander 123.

AlanP_2

MarkBargain wrote: »

Does one of the high interest regular saver accounts offer 3 years + then? I would genuinely be interested in that so long as I could put a decent amount in. I believe the TSB bank account offers 5% but only on £2,000 so that'd only make me £100 a year interest compared to the £60 I'd already get in my Santander 123.

A said earlier you open a Reg Saver account and pay money in each month for a year. After 12 months you move money from the RS to a n interest paying Current Account (or wherever you want), close the RS and OPEN A NEW ONE.

Repeat each year whilst they are the best rates on offer.

TSB v Santander - That's right only £40 more each year, or to put it another way 66.66% more interest than you are currently earning yourself.

If you have a partner and can open 2 single TSB accounts plus 1 joint and have 2 TSB RS accounts alongside the interest received differential goes up even more.

colsten

MarkBargain wrote: »

Does one of the high interest regular saver accounts offer 3 years + then? I would genuinely be interested in that so long as I could put a decent amount in. I believe the TSB bank account offers 5% but only on £2,000 so that'd only make me £100 a year interest compared to the £60 I'd already get in my Santander 123.

You are confusing different accounts, and you are comparing apples with pears.

TSB have a current account that pays 5% AER on up to £2K. There is currently no time limit on this offer.

TSB also have a Monthy Saver account, into which you can put a max of £250 a month, for max 12 months. As has been posted several times now, you can start a new one of these at the end of the 12 months.

The AER of the Santander is 3% provided your balance is between £3K and £20K. Due to the monthly charge, you may or may not be able to realise 3%, but regardless of that, 3% is quite obviously less than 5%.


Goes without saying that all the accounts are subject to the T&Cs published by the banks.