Best Savings Advice PLEASE

Stewy1986

Hello all,

I currently have £6000 sitting in a ridiculously low interest account, this month I received just £1.85 interest on that amount, so I'd like to move it somewhere better. I have that amount to add as a lump sum and i will be able to continue to add a minimum of £600 a month as well.
I do not want to switch bank accounts as I am happy where I am, I need to be able to access the account easily like on an app or online, withdrawals are not necessary for a while but i hope to use this money for a deposit in the next 6-12 months so i also can't lock the money away for more than 12 months.

Any advice greatly received

xylophone

You don't need to switch bank accounts.

You might consider opening a Nationwide Flexdirect account and a couple of Tesco current accounts.

The Flexdirect account would give you access to the Flex monthly saver.

The Flexdirect requires funding of £1000 a month but the £600 you are planning to save plus an in and out of £400 from one of the Tescos would cover this.

So, £2500 in Flexdirect, £3000 in Tesco 1 and £500 in Tesco 2.

£500 a month into Flex regular saver, £100 into Tesco 2, interest from Tesco1 and Flexdirect into Tesco 2.
This should cover what you want to do for the next year.

LXdaddy

+1 for xylophone's suggestion.


Additionally I would look at getting £300 per month into First Direct Regular saver at 6%. You'd need to open a FD current account and meet its requirements s a bit more hassle for a bit more interest.

maximise

Would in addition suggest TSB's plus account for 5% on up to £2k, requires £500 per month (in and out).

Eco_Miser

xylophone's suggestion has the virtue of only using two banks.
The FD saver is locked in for a full year, contrary to the OP's wishes.
Using TSB instead of one of the Tescos would make an extra £40 if held for a full year, and up to £32 more if the TSB monthly saver was also used. (Extra amounts based on the 2% difference between Tesco and TSB)

bobobski

Eco_Miser wrote: »

xylophone's suggestion has the virtue of only using two banks.
The FD saver is locked in for a full year, contrary to the OP's wishes.
Using TSB instead of one of the Tescos would make an extra £40 if held for a full year, and up to £32 more if the TSB monthly saver was also used. (Extra amounts based on the 2% difference between Tesco and TSB)

It's not locked into the FD regular saver for a year, but the money has to stay there for the full year to get the good interest rate, and you cannot make partial withdrawals during the year. So if OP was absolutely sure they would need the money within 12 months, then I agree that this is not the place for it. But if 12 months is more of a hope than a plan, then it might be worth considering, especially because it will (probably) be tax-free.

http://www1.firstdirect.com/1/2/savings/regular-savings-account

Eco_Miser

OK, not technically locked in, but getting just 0.05% interest instead of 6%. For someone who's said they expect to need it in 6-12 months, that's taking quite a risk that the need won't occur for a full year.

bobobski

Agree EM, but OP did use the word "hope" and suggested locking away for up to 12 months is an option. I expect you're right but thought it worth clarifying to the OP.