Suddenly in a position to save.. But confused!

TomJ

Brum wrote: »

Ok..

Plan is to put £10500 into three accounts.
£3000 into Tesco
£2500 into Nationwide (plus get my Fiance to "introduce" me)
£5000 into RBS Vantage.
Set up a standing order between the Nationwide and the RBS accounts of £1000 a month on the same date.

This should in theory net me £71 from tesco, £98 from Nationwide and £118 from RBS. total £287 for the year.. Does that sound right?

The excess from my wages each month will go into an HSBC flexible saver account so I can use that as and when I need to (or not). I will probably need access to this for holidays etc.

You're putting £8000 into 3% accounts. Why not look at Lloyds and TSB?

At account opening instead of Tesco and Vantage:

£500 into Nationwide Flexclusive regular saver at 5%.
£2000 in TSB Plus plus £250 into linked regular saver, both at 5%.
£5000 in Club Lloyds at 4% plus £250 (out of the £400 allowed) into linked regular saver, both at 4%.

Up to £1150 of subsequent month's excess salary can go into the regular savers, all of which allow you to withdraw cash as required without loss of interest (unlike the three 6% regular savers available, which is why I've discounted them), so your holiday funds will still be available and will have grown a lot more than in the HSBC account.