Saving £2500 pcm - best interest plan ?

poojums

Hi All

We are saving between £2000 to £2500 every month that we need in bulk to pay back our 0% Credit cards and loan from my parents by May 2017.
We already own a house and have no children.
What are our best options to generate the best interest on it during this year ?

Many Thanks
Pooja

Archi_Bald

There is a thread listing all the best accounts.

poojums

Thank you. I have read a several many threads before posting in the forums. I found that I could get
upto 6% but they are capped at around £300 pcm - I need to make best use of £2500 pcm instead - so it doesnt work.
Nor do I have a good lumpsum of 20K on which santander mere 3% could have worked

Have looked into ISA and Premium bonds but the return is too small and unpredictable respectively,

Looking for being able to make best use of £2500 saving every month - if there is a catch or a workaround.

Archi_Bald

I make it £2,200 a month into various regular savers, and the current accounts take around £50,000 between them. You can save £76,400 a year at the best rates. That's just for one person - if there are two of you saving, you can more than double the maximum.

You can alternatively use just a normal savings account or two, at much lower rates.

YorkshireBoy

poojums wrote: »

...so it doesnt work.

You can make over 5% AER on every single penny of your joint (you said "we" in your OP) max £30K - and more - over the next 12 months...if you're prepared to put just a little bit of effort in.

That effort starts with reading and digesting the link Archi has provided above (and not dismissing it in 20 minutes flat!) and some of the many other threads on here asking more-or-less exactly the same question.

xylophone

Open a Nationwide Flex direct each and a joint Flex direct - in the first month, pay £1000 into each account from an exterior account - return £500 from the joint account back to the originating exterior account.

Second month do the same.

Third month do the same but move the surplus over £2500 from the sole accounts into the joint account.

Between you you will have £7,500 earning 5%.

In the following nine months you must send £1000 to each account but will immediately move it (plus interest) out again to the TSB Plus sole and joint accounts that you will then open.

You will eventually have £6000 between you in these three accounts earning 5%.

Then you can open a couple of Tesco current accounts each and earn 3% on £12,000.....

YorkshireBoy

xylophone wrote: »

Then you can open a couple of Tesco current accounts each and earn 3% on £12,000.....

3%!? And requiring 4 more current accounts to get it? You're joking, right?

Much better for each of them to open two 5% AER regular savers with the 5% AER providers already being used surely? Easily accommodating the full £30K (and more!) and paying 5% on all of it...not an aggregate circa 4% AER.

Benefits:

1. Ease of administration
2. Higher return...check out the thread title "best interest plan ?"

xylophone

Much better for each of them to open two 5% AER regular savers with the 5% AER providers already being used surely?

The Flex monthly saver and TSB monthly saver had slipped my mind! Odd, as I have one of each!

flopsy1973

YorkshireBoy wrote: »

You can make over 5% AER on every single penny of your joint (you said "we" in your OP) max £30K - and more - over the next 12 months...if you're prepared to put just a little bit of effort in.

That effort starts with reading and digesting the link Archi has provided above (and not dismissing it in 20 minutes flat!) and some of the many other threads on here asking more-or-less exactly the same question.

Iv opened a few of these accounts but the maximum is 5% so im just wondering how you are getting over 5% on 30K

YorkshireBoy

flopsy1973 wrote: »

Iv opened a few of these accounts but the maximum is 5% so im just wondering how you are getting over 5% on 30K

I was very careful to say, throughout my posts, that it was 5% AER, not 5% of £30K.

Don't forget, in this specific case the OP and their partner are depositing the £30K over 12 months at £2.5K per month, ie its not a lump sum.

So they'd open 2 sole Nationwide FlexDirect and a joint, and the same with TSB Plus.

They'd then each open a regular saver with each provider.

For each of the 12 months they'd deposit £1,500 (between them) across the 4 regular savers (2 x £500 plus 2 x £250), with the remaining £1K per month put in one or more of the 6 current accounts opened.

The regular savers will take a total of £18K.
The current accounts will take a total of 13.5K (so £1.5K more than they will have)

But the important thing, as I said originally, each and every penny of this cash is making 5% AER interest.

flopsy1973

ok thanks yes so its 5% not over 5%