have i got enough to start thinking about savings options yet?

danlightbulb

Hi all.

By mid jan i will have almost £2k in savings, saving at a rate of around £400 per month on average. In the last 3 months i have been focussing mainly on current account switching bonuses, earning £250 so far with more to come hopefully. Obviously this trumps the interest ill get on my savings.

I am saving for a house deposit. Target is around £15k which will take me about 4 years. I also have £10k of credit card debt at 0% being paid down at a rate of about £200 per month, which will also take about 4 years. Somewhere in the middle clearly i would have the option of paying back the entire debt with savings but as my savings are for a house deposit im not sure this is a good option if i can keep the 0% offers going.

So my question is should i be trying to maximise my interest at the moment having the relatively small savings amount? Because im going through current account switches i have to be careful about overextending myself with additional transfers. 3% interest on my £2k would only be £60 per year.

Thanks.

YorkshireBoy

Where's the ~£2K now? Hopefully making 5% AER at TSB?

Your best option would appear to be TSB and Nationwide FlexDirect, and their respective regular savers as your balance increases. That way, all your savings are at 5% AER.

£200 a month on a £10K debt equates to a 2% minimum payment. Most providers are now 1% + (in your case, 0%) interest. Why are you paying twice what you need to if the objective is to make money (in the form of savings interest)?

danlightbulb

It's in my santander savings account with rubbish interest. I was planning on putting it into TSB but was waiting for their current account switching bonus to come back before making the move.

I am only making the minimum payments on the CCs. I think the barclaycard payment is a higher percentage i'd have to look it up.

YorkshireBoy

danlightbulb wrote: »

It's in my santander savings account with rubbish interest. I was planning on putting it into TSB but was waiting for their current account switching bonus to come back before making the move.

If you're intent on waiting, then at least get it in Tesco for 3% in the meantime. You could then switch Tesco. What about Nationwide RAF? Very easy £180 there if combined with a cashback site. Which switches have you done so far?

I am only making the minimum payments on the CCs. I think the barclaycard payment is a higher percentage i'd have to look it up.

You're probably right. Barclaycard, along with Sainsbury's, are 2.25% from memory.

danlightbulb

Nationwide RAF??

I opened a donor account with santander (my main bank), and switched that to first direct for £150. Then i switched first direct to halifax for £100 + £5 a month.

So now i have one more donor account with santander ready to use, my main santander account which i dont want to switch, and my halifax account which ill keep for the £5 a month.

YorkshireBoy

danlightbulb wrote: »

Nationwide RAF??

Refer A Friend.

If you get yourself referred for a Nationwide current account (which pays 5% AER anyway if you choose the correct one) each party gets £100, plus you could also grab some cashback from the likes of Quidco and TCB.

I opened a donor account with santander (my main bank), and switched that to first direct for £150. Then i switched first direct to halifax for £100 + £5 a month.

So now i have one more donor account with santander ready to use, my main santander account which i dont want to switch, and my halifax account which ill keep for the £5 a month.

So you're working through Nationwide, M&S (£100 gift card), and the new HSBC offer (£120).

danlightbulb

Havent bothered with M&S yet, not while there are cash bonuses to be had.

So i should probably go santander to hsbc next, then hsbc to nationwide?

Or do i try for another donor account and do both at the same time?

colsten

I'd do them both in tandem as offers can be withdrawn at any time.

YorkshireBoy

colsten wrote: »

I'd do them both in tandem as offers can be withdrawn at any time.

^^^^^^ This!


Reason: HSBC is a 70 day wait for your cash.

danlightbulb

Ok. It means more donor accounts with my current bank though. If i open a donor account and then switch it soon after, wont i start getting refused for donor accounts?

YorkshireBoy

danlightbulb wrote: »

Ok. It means more donor accounts with my current bank though. If i open a donor account and then switch it soon after, wont i start getting refused for donor accounts?

Possibly. I wouldn't do another with Santander if you want to keep the existing account there. RBS (and also NatWest I understand) are very quick to set up.