Feeder for regular savings

Options
I am soon to receive a large lump sum as a redundancy payment. I already have some stock market exposure & do not wish to invest any more at this time so I'm looking at the high interest regular savings accounts.

I have read Special_Saver2's excellent thread on the subject (and many thanks to them for their hard work) but I have already got & filled most of the accounts suggested as feeders.

My wife & I have sole & joint accounts comprising 3 x TSB, 3 x Club Lloyds, 2 x Tesco, 2 x Nationwide Flex Direct (which lose the high rate at the end of this month & will be switched) but only 1 x Santander.

We are looking at opening regular savers with First Direct, HSBC, M&S, Nationwide, TSB & Lloyds which I think will take up £1950 each or £3900 per month if we are both accepted for all the accounts.

Over a year, that would be a total of £46800.

Would the best option be to apply for 2 x more Santander accounts & then set up DDs to feed the savers?

I would keep anything over £40K in maybe a Tesco Internet saver then feed this into the Santander's to keep them up to £20K each.

Or is there a better way?

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    Why no 3rd (joint) Nationwide FlexDirect?

    3 x BoS Vantage each would create room for £30K at a clean 3%, thereby saving you at least £60 in fees (and possibly £120).

    2 more Tesco would house another £6K at a clean 3% (unless the existing 2 are both joint?).

    You'd set up SOs to feed the (regular) "savers", not DDs.
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
    First Anniversary Name Dropper First Post
    edited 13 March 2016 at 6:04PM
    Options
    3 x BoS Vantage each would create room for £30K at a clean 3%,

    Just to clarify - each Vantage is 3% up to £5k (as long as over £3k in each)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    Last edited by veryintrigued; Today at 5:04 PM.
    Did you have to clarify your clarification, ie the bit in brackets? ;)
  • Takedap
    Takedap Posts: 807 Forumite
    First Anniversary Name Dropper First Post
    Options

    3 x BoS Vantage each would create room for £30K at a clean 3%, thereby saving you at least £60 in fees (and possibly £120).

    2 more Tesco would house another £6K at a clean 3% (unless the existing 2 are both joint?).

    That looks like it could be the way forwards.
    Thanks for that.
  • Abestar111
    Abestar111 Posts: 29 Forumite
    First Post First Anniversary
    Options
    New to this approach, I'm always amazed at the high number of simultaneous accounts that can be set up, apparently with ease.

    Can setting up new accounts in quick succession cause problems with credit checks? I've just set up a BOS with Vantage, when I tried to set up second one again on the internet, I was approved for a basic one which I declined. When I contacted to say all my details were identical it was explained that there must have been due to recent activity on my account captured by the credit check. Was advised to wait 30 days. Not sure what to do now?

    Only other thing I can think of are dormant credit cards. Should those not being used be cancelled. Never quite sure about the impact of should I stay or should I go?:eek:
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.9K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards