Any savings accounts that better current accounts?

krazyk

Eco Miser

Sorry, couldn't see it, the link is black for me, thanks though.

Eco_Miser wrote: »

...using all the current accounts over £50k.

Not sure I understand what this means?

krazyk

xylophone,

I have just been trying this site and it suggests 3 x BOS and 1 x Club Lloyds with various transfers between each:
http://www.bankaccountsavings.co.uk/

So it's OK to have many current accounts? Also, I'm guessing you'd need to leave a day or two between each transfer to be safe?

LXdaddy

Krazyk, there are several posts in this section of the forum about taking advantage of the interest paying current accounts and the high interest rates available on regular savers. These easily beat the rates available on savings accounts and cash ISAs.


To get returns of 6%, 5%, 4% and 3% you do need to open several accounts, meet their funding requirements and other T&Cs, generally having a number of Direct Debits and in some cases using the current account switching service. IT takes time to set up all the accounts and the DDs and transfers but it certainly produces more interest than you can get elsewhere.


Using all the current accounts paying at least 3% (Gross) you can have much more than your £47K and using all the regular savers can easily swallow more than £700 per month. You won't have to use ALL the available accounts for those numbers.

krazyk

Eco Miser,

That link is really useful, thank you. I've used bankaccountsavings.co.uk again and basically had a reset.

I've put in £50k instead of £20k into the site. Selected No for joint accounts (I don't have a partner) and Yes for Direct Debits (though I only have two direct debits for my mobile and TV/Internet, as I don't pay for the energy bills) and it gives me:

- 1 x 20k in Santander 123 (so don't need to move my money, that's where my two DDs will go).
- 1 x £5k in Club Lloyds
- 3 x £5k in BOS
- 2 x £3k in Tesco
- 1 x £2k in [STRIKE]Tesco[/STRIKE] TSB Classic Plus

EDIT: I've change the above as I'm getting different results upon the second run, the interest made per year is still the same but it now includes TSB

Then lists 6 payments between each account. This gives me £1164 interest a year. I need to set up two extra DDs for Lloyds so I can follow the site's suggest to set up charity donations.

It's interesting it does include the Nationwide FlexDirect account. I'm presuming it doesn't include time-limited offers so I think I'd tweak the above list and swap the 1 x £2k Tesco to Nationwide, at least for the next 12 months. The Nationwide account is currently my main account where my salary goes anyway.

So should I feed into any regular saver accounts at the same time. As suggested previously I could put my £500pm amount into a saver account but should I slow drip feed any of the above into one too?

Aretnap

krazyk wrote: »

So it's OK to have many current accounts? Also, I'm guessing you'd need to leave a day or two between each transfer to be safe?

You can have as may current accounts as you like, assume the banks accept your applications. I have nine (I think - I' have to check the spreadsheet to be sure). The minimum deposits are met by a chain of standing orders which all go round on the same day of each month - no need to leave a day or two between them.

krazyk

Just for fullness here is what is suggest should be the transfers:

Payment 1 TSB Classic Plus (1) TO Bank of Scotland (2) £1,000
Payment 2 Club Lloyds (1) TO Bank of Scotland (1) £1,500
Payment 3 Bank of Scotland (1) TO Club Lloyds (1) £1,500
Payment 4 Bank of Scotland (2) TO TSB Classic Plus (1) £1,000
Payment 5 Bank of Scotland (3) TO Santander 123 (1) £1,000
Payment 6 Santander 123 (1) TO Bank of Scotland (3) £1,000

EDIT: OK, so I'm getting a different result now, hence why the above includes TSB. I'll edit my previous post to reflect this change though the interest made per year is the same.

krazyk

Aretnap,

Super, that sounds great.

So I'll apply by one by for the different accounts. When it comes to applying for an account with secondary accounts with the same provider, do I just re-apply as if applying for the first time. Do I need to do anything differently?

Eco_Miser

krazyk wrote: »

EDIT: OK, so I'm getting a different result now, hence why the above includes TSB. I'll edit my previous post to reflect this change though the interest made per year is the same.

Using TSB instead of Tesco should be about £40 more.

I see you've found my link, and realised the advantages of multiple accounts.

I'd suggest you use lots of regular savers, certainly TSB, Nationwide and Lloyds, since you'll be using the qualifying current accounts anyway. Feed them from Santander and Tesco.

The bank account savings site doesn't cover FlexDirect, or regular savers, so you need to note what each account needs depositing each month (and whether this can be from another of your accounts with the same bank), then work out the best way to do that, and to remove interest from full accounts, and to cover any direct debits being paid out, having regard to the date of the DDs, and interest, and you getting paid. Rather more complex than suggested on that site.

krazyk

Eco Miser,

I'll post a fuller reply tomorrow but I've created a spreadsheet with various scenarios and general conclusions (which might be obvious but I needed to see the raw figures) are so long as move your current account money into a regular saver account with higher interest rates then you earn more interest (at least over 12 months) + it doesn't matter the current account you transfer from so the total interest earned is the same if I transferred from the £20k Santander 123 account or £3k Tesco account.

Anyway, I'll post specifics tomorrow.

redpete

krazyk wrote: »

eskbanker,

I said I was trying to find a place to put up £20-7k and can't find any savings account that competes with current accounts. And said I'll have £500 to save per month too, but specified this would probably be used to transfer into the Santander account to meet their transfer caveat.

As a qualified pedant I need to point out that you actually wrote

can't find any ISA, savings account or regular saver accounts that compete

my emphasis