Prudential Savings Bond v's Santander 123 Bank

steveyt_2

Hi.....struggling to get my head around the maths here so looking for guidance.

Got £20,000 to invest. I am currently banking with TSB paying £13 a month for the account which both me and the wife do make use of the breakdown cover, mobile insurance and travel insurance.

Was toying with going to Santander to get the 3% interest and pay the £5 per month but then would obviously have to purchase insurance for both me and the wife for breakdown,mobiles and travel. Not sure if I'd be much better off to be honest so was going to put it in my Pru Bond but just found out it is only paying after charges about 1.5% - 2% a year.

Really want to make the most of my money but it appears you get in one hand and pay with the other at times.

With children going to college and maybe needing a car down the line i would rather NOT tie it up long term.

Any help advise would be welcome

ColdIron

The Santander 123 account only pays 3%

steveyt_2

ColdIron wrote: »

The Santander 123 account only pays 3%

whoops....now amended....thanks

xylophone

If you want to keep it in cash you might consider opening TSB Plus accounts for you and your spouse and add a joint account- can be funded by same day internal standing order.

Nationwide Flexdirect ditto but fund externally, in out and back again.

Then a LLoyds Club - fund in/out back etc - also a couple of DDs required.

A joint Tesco for the rest and to collect in the monthly interest?

Or, if you consider that the money is for your children, had you considered JISA?

ColdIron

You might also consider the Nationwide FlexPlus in addition to the suggestions above, pays 3% on balances up to £2,500 for £10 per month but also comes with good breakdown cover, mobile insurance and worldwide travel insurance

http://www.nationwide.co.uk/products/current-accounts/flexplus/features-and-benefits

dunstonh

Not sure if I'd be much better off to be honest so was going to put it in my Pru Bond but just found out it is only paying after charges about 1.5% - 2% a year.

Which version of the Pru bond do you have? Those on my books are all coming out around 5% (albeit the annual bonus being around 1.5% with the rest in final bonus).

jimjames

ColdIron wrote: »

You might also consider the Nationwide FlexPlus in addition to the suggestions above, pays 3% on balances up to £2,500 for £10 per month but also comes with good breakdown cover, mobile insurance and worldwide travel insurance

http://www.nationwide.co.uk/products/current-accounts/flexplus/features-and-benefits

I use the FLexplus and have found it excellent value for money. Decent interest rate as well as good benefits for £10

steveyt_2

Hi....it just says Prudential Investment Bond on my paper work. Can you describe which Bond I need to look for so i can ring the Pru and they may transfer. Thanks in advance.....

dunstonh

Can you describe which Bond I need to look for so i can ring the Pru and they may transfer.

No. They have had different versions over the years but they are all fundamentally the same (minor differences). However, is you actual return coming out at 1.5% or is that just the annual bonus rate (with final bonus accrued to date on top). Normally, Pru paperwork only tells you what the annual bonus rate is on their statements. Not the final bonus (As that is variable).