£6k, no idea where to put it?

qqg3

I have about £6k and I am completely new to saving. I'm looking at all the facts and figures and can't figure out what to do. ISA's seem to offer terrible rates, whilst banks offer savings account with much better net rates but I'm not sure what the catch is.

If you had £6k where would you put it?

YorkshireBoy

I'd have the whole lot making 5% AER (for the first 12 months at least).

Immediately:

£2K in TSB Plus
£2.5K in Nationwide FlexDirect
£500 in Nationwide's regular saver
£250 in TSB's regular saver

And then on 1st February:

£500 in Nationwide's regular saver
£250 in TSB's regular saver

jimjames

Depends if you need access to it and if you have other money as suitable emergency funds.

TSB x £2000 @ 5%
Nationwide x £2500 @ 5%
Tesco x £1500 @ 3% (with space for another £1500 if needed)

Alternatively you could get 4% on £5000 of it with Lloyds and 5% on the remainder with TSB as above. Depends how many accounts you are prepared to operate to get best return.

In comparison you might just scrape 1.5% in an ISA.

masonic

In one or more high interest current accounts...

http://bankaccountsavings.co.uk/

Eco_Miser

Two or more of the accounts listed here
Read around the board for how people deal with the various requirements for the accounts.

xylophone

You might open a TSB Plus current account and a couple of Tesco current accounts.

£2000 in TSB, £3000 in Tesco 1 and £1000 in Tesco 2.

You would set up a monthly standing order for £500 from one of the Tesco accounts to TSB and from TSB to Tesco on the same day.

You would sweep the monthly interest from TSB and Tesco 1 to Tesco 2.

Be sure to read all the T&Cs for each account.

qqg3

Thanks for the responses guys and gals. Some useful advice. I will have to investigate all these account. I noticed First Direct also offer a 6% (gross) option and I was thinking of switching my primary anyway.

badger09

qqg3 wrote: »

Thanks for the responses guys and gals. Some useful advice. I will have to investigate all these account. I noticed First Direct also offer a 6% (gross) option and I was thinking of switching my primary anyway.

true, but that's a Regular Saver, so limited to £300 a month. Could be useful alongside Nationwide & TSB's Regular Savers if you can save in addition to your £6k or are willing to drip feed some of it;)

qqg3

That's exactly my plan. I now have the means to actually put away money every month so I will drip some in there too. Gosh this is complicated, I don't know how you guys with more than a couple of accounts stay organised :eek:

badger09

qqg3 wrote: »

That's exactly my plan. I now have the means to actually put away money every month so I will drip some in there too. Gosh this is complicated, I don't know how you guys with more than a couple of accounts stay organised :eek:

I have 20+ and I use a spreadsheet, with detailed notes on the specific requirement of each account as my memory isn't what it was:o

I used to do all my 'monthly shuffles' manually once a month, but was going to be out of the country for several weeks and didn't want to have to spend time on it, miss out on interest, or even worse, go overdrawn:eek:. So now some movements are automated by SO and some I still do manually.

Works for me:D

lilmissmup

Sorry to jump on this thread but I have 2 TSB accounts already which will be full soon once I get my inheritance.

Can I have 2 regular savers or just 1?