£7000 to transfer - interest question 30 April 2016 at 8:37AM in Savings & Investments 16 replies 1.6K views

cmgallag

Hello all

I know that this sounds incredibly stupid but here goes...I've got £7000 in an account with nationwide which is earning and embarrassing lack of interest so I'm planning on transferring it. The choices are either the Nationwide Flexclusive or the M&S linked regular savings.

When I transfer it would I get interest on the opening balance of £7000 or would I need to dripfeed the money in? Nationwide would let me dripfeed it in by up to £500 a month and M&S only £250 a month.

thanks!

Temrael

I don't know the Nationwide one but most places calculate interest daily based on the balance that is in there each day, then pay the interest whenever (the M&S Reg Saver is annually for example).

Your limiting factor will be how much they let you pay in each month though as you say.

cmgallag

Thank you Temrael!

That was what I thought but to be honest I've spent so long looking at different things whilst trying to look after a 3 year old at the same time that I think my brain has just completely gone!

YorkshireBoy

cmgallag wrote: »

The choices are either the Nationwide Flexclusive or the M&S linked regular savings.

Is that because you already have all the accounts that would allow you to get 3/4/5% AER on the entire £7K?

cmgallag

Yes, I've got a flexaccount with Nationwide already so that gives you the 5% savings. I'd need to open an M&S account to get the 6% regular savings with them but that's not a problem. My current nationwide is giving 0.7%...

YorkshireBoy

So you already have Club Lloyds, TSB Plus, 3 x BoS Vantage, 2 x Tesco?

ViolaLass

Given how log it will take you to dripfeed in the £7k, why not get an account where you can put the money in in one go?

AnotherJoe

Agree with ViolaLass, you'd be better off opening a couple of higher interest paying accounts like TSB or Club Lloyds. Or open one S123 account and drip feed the accounts you mention from that.

cmgallag

YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum amount

ViolaLass, I know that would be better, that's why I was wondering whether I could get interest straight away if I put them into these two accounts, the interest rates are the attractive bit

ratechaser

cmgallag wrote: »

YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum

Er.... 2k into TSB, 5k into Club Lloyds. Equals 7k if I'm not mistaken

Then you just cross fund once a month. Also need a couple of DDs on the Lloyds account, but even if you don't have 2 that you can move easily, plenty of threads on here about how you can create them without much difficulty...

YorkshireBoy

cmgallag wrote: »

YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum amount

You're prepared to open a M&S current account just to get access to a £250 a month regular saver, yet aren't prepared to open a BoS Vantage account to get an instant 3% AER on most of your £7K?

The other £2K would go into TSB Plus (for £5% AER), which would then allow £250 a month going forward at 5% AER.

You'd then set up a couple of cross-firing £1K standing orders between these 2 accounts.

That's the easy way, but not the way I'd do it as maximising return is my objective...even if that meant finding a couple of DDs.