Where am i best saving?

Mamai

Hi everyone.

This is my first time posting on this site although I have been a 'creeper' for a while. A bit of background- I have never saved and always spent spent spent. Luckily I have not a lot of debt (£200 on credit card for Christmas presents).
Last year I decided at the grand old age of 26 I should start saving. So far I have saved £2750 in a Halifax regular saver account and am so delighted. I will have £3000 by the end of the year.
£3000 is the max I can save in this account therefore I will need to move it, although I will continue saving in it once it's moved.

I would like to know where I am best putting this money? I have a isa with Halifax but the interest rate is only 0.25%. I am a bit clueless about fixed rate/ easy access and all that jazz.

Any advice would be greatly appreciated!

Thanks in advance

jimjames

If you can get a current account or two then you can put £4500 away in them at 5% with TSB and Nationwide.

A regular saver only allows you to pay in for a set time and then you need to put the money elsewhere and can start again. There may be better paying ones than Halifax but it's not something I use.

colsten

Your creeping should have been more successful.

You should have noticed the Regular Savings thread, https://forums.moneysavingexpert.com/discussion/608697

Also the write-up on top savings http://www.moneysavingexpert.com/savings/savings-accounts-best-interest, and you can also look for the savings loophole article.

In a nutshell, Halifax are generally really terrible for savings but at the same time they do have a really useful current account.

Mamai

I considered a new current account but don't really want to switch banks and don't have enough income to meet the minimum payments of my Halifax reward account and then to pay in to another one.

Yeh the Halifax regular savers isn't the best interest (2%) so I may consider changing but I needed an account to save in and not be able to get at (which is my problem with saving in the past) and I have always banked with Halifax so just stuck with them.

jimjames

Mamai wrote: »

I considered a new current account but don't really want to switch banks and don't have enough income to meet the minimum payments of my Halifax reward account and then to pay in to another one.

Fair enough. Just keep at it then, you're already doing well starting to build up a pot and getting out of debt so keep motivated!

MarkBargain

Mamai wrote: »

I considered a new current account but don't really want to switch banks and don't have enough income to meet the minimum payments of my Halifax reward account and then to pay in to another one.

You don't need income, why not open a bank account elsewhere and transfer money backwards and forwards? The minimum payments can be from yourself and taken straight back out.

I'd consider TSB for 5% on £2,000 and keep the Halifax Rewards account for £5 a month bonus.

Or if you have a car, expensive phone and travel took at Nationwide Flexplus. 3% interest up to £2,500 but £10 a month fee.

Eco_Miser

You don't have to switch accounts, you can have two, or three, or twenty.

You do have enough income to meet the minimum payments on ALL current accounts - you simply move the money round all the accounts that need a minimum monthly pay in. Once that £3000 is in a current account it can go round and round.

There's lots of posts about this on here.

Westie983

improve your ISA rate to 0.8% by logging into your internet banking, its a automated system you just need your sort code and account number, thats if you are not planing to move it elsewhere.

let me find you a link. Convert existing savings account

bigadaj

You don't have to switch accounts, just open one or more new ones. Then have a standing order or manually move payments in and out once a month, some accounts need direct debits so just need to check this.

Not too much effort for getting a far higher percentage interest rate than any savings account.

Mamai

Thanks everyone.

Can I ask- if I move £2000 to sit in a tsb current account and move the minimum to and from it to ensure I meet the requirements, what way will interest work?

YorkshireBoy

Mamai wrote: »

Can I ask- if I move £2000 to sit in a tsb current account and move the minimum to and from it to ensure I meet the requirements, what way will interest work?

Not sure I fully understand the question, but if you maintain a £2K balance in there you will earn interest each month of:

£2,000 x 4.89% / 365 x n x 0.8

where:

n = number of days in the billing period (28-34 or so)
0.8 = basic rate tax multiplier

So somewhere around £6.50 each month.