What to do with money from Regular Savers

Crag30

In the not too distant future, my 12 months of Regular Savers with M&S and TSB will be up, and I'm wondering what to do with the 2 x £3000 for another 12 months.
I'll be renewing the above 2 Regular Savers so I don't want another account I need to feed monthly, and I don't have the time on my hands to manually circle money about, all my transfers are done by SO at present.
My initial thoughts are to put £3000 into a Tesco account getting 3%, but need also to go through past posts again and find the formula for working out how much I'd get feeding the other £3000 into a First Direct Regular Saver at 6%

YorkshireBoy

Some thoughts...

£5K in Club Lloyds and £1K in Tesco would be a good fit. However, you'd only then have £2K available for drip-feeding regular savers.

Nationwide FlexDirect will take £2.5K @ 5%, and another £500 a month at the same rate in the regular saver.

The formula for drip-feeding £300 a month from a 3% account to the FD 6% regular saver is...

(£3,600 x 6% / 12 x 6.5) + (£3,600 x 3% / 12 x 5.5)

So around (£117 + £49.50 £166.50, or 4.625%

But you must have known the average would be 'around' 4.5%

Archi_Bald

Crag30 wrote: »

My initial thoughts are to put £3000 into a Tesco account getting 3%, but need also to go through past posts again and find the formula for working out how much I'd get feeding the other £3000 into a First Direct Regular Saver at 6%

Easy calc: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed

Why only one Tesco?

Crag30

Thanks for the replies. I don't have a problem with two Tescos accounts if that's a good home for my money.
I thought Club Lloyds had to be fed £1500 per month? I'll have to go and have another browse.
I've tried to take in too much info off this site, and browsing bank websites in the last 12 months that I'm getting myself mixed up with who does what, and T&C's.
Nationwide I omitted as it's requiring a £1000 per month.

At present I have £500 a month coming out of Natwest (whom I'm happy with), going into a TSB Current Account. £250 goes into their Regular Saver, and £250, goes to M&S, and then into their Regular Saver. These transactions are all done by SO, so it's minimum fuss, and I'll be opening these again when the 12 months is up. I know this system sounds lazy, but I have a Dad with Alzheimer's, and also now cancer too, so I don't know how busy I'll be from one day to the next, and could be quite easy to miss a deadline.

YorkshireBoy

Crag30 wrote: »

...so I don't know how busy I'll be from one day to the next, and could be quite easy to miss a deadline.

Maybe you should forget about ad-hoc 6% regular savers, thereby limiting the number of 'wasted' current accounts required?

You could go with Lloyds, Nationwide FlexDirect, and TSB (taking £9,500) and take up their regular savers (taking another £1,150 a month at the same interest rates as the current accounts). Any spare cash could go to Tesco (up to £6K, and then move to to BoS). If all the above current accounts are full, then simply cross-fund with SOs...including automatic interest draw-off.

Might be a better system for you going forward?

Eco_Miser

Crag30 wrote: »

I thought Club Lloyds had to be fed £1500 per month?
Nationwide I omitted as it's requiring a £1000 per month.

You've got at least £6000, you can use the same £1500 each month for all your accounts, you can move it by standing order. No problem.

YorkshireBoy has given you a quite simple solution, if you want more, you could go with the 6% RSs.
To remind you, all the good accounts are listed here.

Crag30

Thanks for the help with this. I've sat back and took things in before replying. Maybe being a Newbie I suffered tunnel vision, and a Dad in hospital doesn't help.

As mentioned previously, I shall restart the Monthly Savers with TSB & M&S, still being fed by the TSB current account, but you've put ideas into my head that if I can get another £1500 together to add to the maturing £6000 from the regular savers, I could go :

£5000 - Club Lloyds @ 4%
£2500 - Nationwide Flexdirect @ 5%

Then if I can have spare cash I could then add Tesco into the mix too.

Eco_Miser

You only need £4000 in Lloyds to get the 4%, and you don't have to have £2500 in Nationwide; so you don't need that other £1500 straight away, you can fill the accounts as more money comes in.

enthusiasticsaver

Crag30 wrote: »

Thanks for the replies. I don't have a problem with two Tescos accounts if that's a good home for my money.
I thought Club Lloyds had to be fed £1500 per month? I'll have to go and have another browse.
I've tried to take in too much info off this site, and browsing bank websites in the last 12 months that I'm getting myself mixed up with who does what, and T&C's.
Nationwide I omitted as it's requiring a £1000 per month.

At present I have £500 a month coming out of Natwest (whom I'm happy with), going into a TSB Current Account. £250 goes into their Regular Saver, and £250, goes to M&S, and then into their Regular Saver. These transactions are all done by SO, so it's minimum fuss, and I'll be opening these again when the 12 months is up. I know this system sounds lazy, but I have a Dad with Alzheimer's, and also now cancer too, so I don't know how busy I'll be from one day to the next, and could be quite easy to miss a deadline.

I have a number of current accounts and regular savers and do all the transfers by standing order. I would say the Tesco ones would be a good fit as you do not have to have any monthly income paid in and you can open two. Nationwide Flex Direct and regular saver is also good as that pays 5%. You can put £2500 in the Nationwide and £500 each month into the regular saver so you could open that and use a Tesco account to fund the regular saver. It can all be done by standing order but you will need to pay £1k into the Nationwide every month but it can go in and out either from the Tesco account or your Nat West account

Crag30

Thanks for the replies, as a newbie to this it really helps.

I've found myself in a position that I could put £2500 into a Flex-direct without having to wait till my regular savers' 12 months are up.
So I've applied today as I've read it can take a bit of time, and been accepted, but need to go to a branch with some ID.
I can bounce £1000 in and out manually from my main NatWest account, until I get the £6000 from the regular savers to open a Club Lloyd's, and one at Tesco.
Can I set up a Direct Debit from within Tesco on-line banking to draw money from Lloyd's, as I will be wanting to circulate £1500 to meet Club Lloyd's requirements? I know this maybe a silly question but having looked at it on my NatWest account, I can only delete and amend a Direct Debit, but not create one on-line.
The other direct debit will be £50 worth of premium bonds. (I don't give Camelot any of my money, so do PB's instead)

YorkshireBoy

Crag30 wrote: »

Can I set up a Direct Debit from within Tesco on-line banking to draw money from Lloyd's, as I will be wanting to circulate £1500 to meet Club Lloyd's requirements?

Not from a Tesco current account (or any current account for that matter).

Circulate £1,500 between Nationwide & Lloyds (FP or SO) and look for your DDs elsewhere.