Which savings account to put savings into

book12

I have one savings account (an instant access isa) for a number of years. This has £20K (this amount has been consolidated from a number of ISAs into one). The interest rate is 0.8% for a number of years, and I didn't move it (or 'transfer-in') into a new one. I usually put at least £500 a month (sometimes less or more than that, depending on cash flow for that month).

I have saw Nationwide's Flexclusive Regular Saver paying 5% interest, and I do qualify as I got a Nationwide bank account. I am planning to put £500 (the maximum it will take) for 12 months. That means after 12 months it will be £6000.

Am I right that I should put, for example £500 each month in the Flexclusive Regular Saver, as it will earn more interest, and is better than putting £500 each month into a an instant access ISA which has £20K with a 0.8% interest?

Putting £500 each month in the Nationwide's Flexclusive Regular Saver, is better than putting £500 into an ISA which has a £20K balance with a 0.8% interest? Right?

darkidoe

book12 wrote: »

I have one savings account (an instant access isa) for a number of years. This has £20K (this amount has been consolidated from a number of ISAs into one). The interest rate is 0.8% for a number of years, and I didn't move it (or 'transfer-in') into a new one. I usually put at least £500 a month (sometimes less or more than that, depending on cash flow for that month).

I have saw Nationwide's Flexclusive Regular Saver paying 5% interest, and I do qualify as I got a Nationwide bank account. I am planning to put £500 (the maximum it will take) for 12 months. That means after 12 months it will be £6000.

Am I right that I should put, for example £500 each month in the Flexclusive Regular Saver, as it will earn more interest, and is better than putting £500 each month into a an instant access ISA which has £20K with a 0.8% interest?

Putting £500 each month in the Nationwide's Flexclusive Regular Saver, is better than putting £500 into an ISA which has a £20K balance with a 0.8% interest? Right?

You seem to know the answer yourself but don't sound very confident.:o Yes your are right, putting £500 per month into the nationwide Flexclusive regular saver is better than £500 into the ISA paying 0.8%. However, that is ONLY for the £500 you are paying into the regular saver each month. You need to find a better home for the 20K in the ISA, preferable in other high interest regular saving/current accounts , or if you find it too troublesome to jump through so many hoops, better paying Cash ISA

Archi_Bald

https://forums.moneysavingexpert.com/discussion/5374614

jimjames

book12 wrote: »

Putting £500 each month in the Nationwide's Flexclusive Regular Saver, is better than putting £500 into an ISA which has a £20K balance with a 0.8% interest? Right?

5% is bigger than 0.8% so yes you're right.


In fact you'd get £160 interest from your £20,000 per year at 0.8%. You'd get the same £160 from having only £3200 in an account paying 5%.