TSB Monthly Saver?

Mimi_Arc_en_ciel

Me again!


Quick run down:


TSB Classic Plus 1 - £2k limit
TSB Classic Plus 2 - £2k limit


I've now started putting money into a TSB Monthly saver (Allowance is £250 a month with 5% interest paid annually)


BUT - I don't think this is the best place for my money.


I'm putting away £180.00 a month into the Monthly saver. I don't have an ISA.


Where should I be putting the cash? Nationwide account @ 5% (For a year) or elsewhere?


Thanks

bowlhead99

So you're putting £180 a month away into a TSB monthly saver, which is an account that pays 5% a year on all the money that's in it. Why don't you think the best place for your money is that account? There aren't any others paying significantly more than 5% (without a bunch of hassle compared to the sum of money involved, if you've already got the TSB one going).

Are you saying you have more cash sitting around available, than the £2k x 2 plus £180 a month? If so, how much? If there's more spare money which currently isn't earning any interest (eg your salary before you spend it leaving the £180) then you should probably get an account which fits it all in.

katejo

It depends partly on the amount of money concerned and how soon you are likely to need access to it? Also your level of risk perhaps? I also have 1 TSB Classic and the monthly saver. I liked the idea of the TSB monthly saver because you can take money out if really needed without losing the higher interest rate. I would like a 2nd TSB Classic but wasn't sure whether they allowed two accounts any more. I am about to look at other options to use for my ISA money following the tax changes.

Mimi_Arc_en_ciel

bowlhead99 wrote: »

So you're putting £180 a month away into a TSB monthly saver, which is an account that pays 5% a year on all the money that's in it. Why don't you think the best place for your money is that account? There aren't any others paying significantly more than 5% (without a bunch of hassle compared to the sum of money involved, if you've already got the TSB one going).

Are you saying you have more cash sitting around available, than the £2k x 2 plus £180 a month? If so, how much?

No extra cash at the moment sadly - I don't know, I just have it in my head that as its 5% annually its not a great deal but I think I've got it wrong

katejo wrote: »

It depends partly on the amount of money concerned and how soon you are likely to need access to it? Also your level of risk perhaps? I also have 1 TSB Classic and the monthly saver. I liked the idea of the TSB monthly saver because you can take money out if really needed without losing the higher interest rate. I would like a 2nd TSB Classic but wasn't sure whether they allowed two accounts any more. I am about to look at other options to use for my ISA money following the tax changes.

They don't allow 2 accounts any more unless one is a joint (from what I recall someone posting on here a while ago) - I've had mine for a while now


Nationwide Flex direct also do 5% for up to £2500 for 2 years

bowlhead99

I don't know how you can say 5% annual "is not a great deal". Can you find lots of other accounts paying a higher rate than 5% per year? Or paying as much as 5% in less than a year?

5% a year is about the best risk-free rate in the market, apart from a 6%regular saver which is more hassle to set up and your amounts are not exactly massive.

While you were replying I edited my post to clarify that your other spare money sitting around wastefully not earning interest might include, for example, salary or income or benefits or however you get cash each month. For example maybe you have £1180 a month coming in and £1000 is spent on groceries and rent and bills leaving £180 to save.

Presumably that £1000 (which drops down to 0 over the course of the month as it gets used up) still needs a "home" for the 0-30 days that you have it, before you spend it. If your 2x TSBs are maxed at £2000 then is it just sitting as excess balance on one of the accounts, earning no interest? If so, you might like to open up another account like Nationwide to store it and earn some interest. But as it is only temporary it won't be earning money for the full 365 days a year so not going to get you a massive payout.

Mimi_Arc_en_ciel

bowlhead99 wrote: »

I don't know how you can say 5% annual "is not a great deal". Can you find lots of other accounts paying a higher rate than 5% per year? Or paying as much as 5% in less than a year?

5% a year is about the best risk-free rate in the market, apart from a 6%regular saver which is more hassle to set up and your amounts are not exactly massive.

While you were replying I edited my post to clarify that your other spare money sitting around wastefully not earning interest might include, for example, salary or income or benefits or however you get cash each month. For example maybe you have £1180 a month coming in and £1000 is spent on groceries and rent and bills leaving £180 to save.

Presumably that £1000 (which drops down to 0 over the course of the month as it gets used up) still needs a "home" for the 0-30 days that you have it, before you spend it. If your 2x TSBs are maxed at £2000 then is it just sitting as excess balance on one of the accounts, earning no interest? If so, you might like to open up another account like Nationwide to store it and earn some interest. But as it is only temporary it won't be earning money for the full 365 days a year so not going to get you a massive payout.

I don't know why I think its a "bad" deal - I think its all in my head


My main account (Halifax) runs on a minimum. I have a "standard" Halifax account which I transfer my grocery shopping money and my petrol. Everything else is tided up in the TSB account (So annual bills such as car insurance etc is in there)

sammybee

bank change , best ones for me


hi, i am looking to change my bank account, which is the best for me ??? with £12000 savings and about £1,200 per month going into it, with numerous utility bills going out, not sure how much i will save each month, say around £300 and i never overdraw

xylophone

For utter simplicity, a Santander 123 would probably suit. There is a regular saver as well.

If you are prepared to go down the multiple current account route, there are options for higher interest.

PeacefulWaters

5% pays you more interest than accounts that pay you less than 5%.

veryintrigued

Mimi_Arc_en_ciel wrote: »

Nationwide Flex direct also do 5% for up to £2500 for 2 years

Are you sure?

B_G_B

Mimi_Arc_en_ciel wrote: »

My main account (Halifax) runs on a minimum. I have a "standard" Halifax account which I transfer my grocery shopping money and my petrol.

If you can fulfil the T&c’s, an upgrade to the Reward account would give you a little eXtra.

Possibly with an additional switch bonus as well.

http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/