Need advise about my £20K

BUKI_2

ro2778 wrote: »

Or if you want the super high risk option, transfer to a stock and shares ISA, then fill in a W-8BEN form and invest half in tesla, and half in Google / alphabet. That's what I'd do if I had 20k to burn

lol I am already struggling at current stage
and u want me to move to STOCK / ISA ??? lol


I would have noooooooooooo idea what the hell to do there
and NO, I do not have 20k to spare! These are my hard worked money ... sweat my !!! for this.


if I had won lottery, would be a different scenario

BUKI_2

xylophone wrote: »

You could do that, or you could pay in £50 from savings or take out £50 and pay it back in again....

And look at other high interest current accounts, remembering that you can cycle money in and out on the same day to meet requirements.....

You might want to open a Nationwide Flexdirect Account - this gives you access to the Flexclusive ISA which accepts transfers in (and is fully flexible) and to the Flex monthly saver...

nice idea that


maybe I can have both : LLOYDS CLUB and the NationWide
and the it would be a case of transferring money between them two accounts?!




Hahh, not sure if that would work as both might need a minimum of (lets say) £1500 per month.
and I only got 1 income at moment. Unless transferred from cashISA


hahh I see this getting a big mess, I am loosing my head already

Angry_Bear

BUKI wrote: »

bigadaj wrote: »

Hoping you don't live in a family member.

sorry, you lost me here?
what exactly do you mean ???
has that got anything to do with the interest rates?

I believe it was a joke about the typo.
Living with a relative would be fine. Living in a relative's house would also be fine. But living in a relative would be quite uncomfortable for your relative.

ViolaLass

BUKI wrote: »

nice idea that


maybe I can have both : LLOYDS CLUB and the NationWide
and the it would be a case of transferring money between them two accounts?!




Hahh, not sure if that would work as both might need a minimum of (lets say) £1500 per month.
and I only got 1 income at moment. Unless transferred from cashISA

You could earn only £1 a month and still make it work.

Income goes into account 1. Send it to account 2. Send the income back between accounts 1 and 2 until you've 'paid in' the amount required. Done (all by direct debits, not by hand).

BUKI_2

This is confusing to me!
I thought the agreement / condition is;


the interest rate is paid annually, based on the money that has been in the account for 1 year.
That in mind; if I start switching money between 2 accounts; does it not have an effect on the annual rate?


Example: if I have 10K for 1 year for 3% = £300 (provided 10k has been there all time day by day)


This example is taken from my Lloyds CashISA,
not sure if that be the same with high rate account cards such as Santander 123

bigadaj

BUKI wrote: »

This is confusing to me!
I thought the agreement / condition is;


the interest rate is paid annually, based on the money that has been in the account for 1 year.
That in mind; if I start switching money between 2 accounts; does it not have an effect on the annual rate?


Example: if I have 10K for 1 year for 3% = £300 (provided 10k has been there all time day by day)


This example is taken from my Lloyds CashISA,
not sure if that be the same with high rate account cards such as Santander 123

Current accounts will normally pay interest on a monthly basis based on the number of days in that month (different banks may have different start and end days) and the balance on each of those days.

So in your example then you may get slightly less than £25 each month, depending in whether your interest is an aer of gross rate. If you go above the maximum they pay interest on, eg£5000 on club lloyds, there aren't any penalties you just don't get any interest in the amount abive £5000. So you would need to transfer out interest on a monthly basis to another account to gain interest on that.

Pincher

I think you are thinking about limited access accounts.


I think HSBC has one where you get no interest in the month there is a withdrawal.


The tricky penalty here is you must pay in the monthly minimum,
or you get no interest.

ViolaLass

BUKI wrote: »

This is confusing to me!
I thought the agreement / condition is;


the interest rate is paid annually, based on the money that has been in the account for 1 year.
That in mind; if I start switching money between 2 accounts; does it not have an effect on the annual rate?


Example: if I have 10K for 1 year for 3% = £300 (provided 10k has been there all time day by day)


This example is taken from my Lloyds CashISA,
not sure if that be the same with high rate account cards such as Santander 123

If you have £10k in an account, it doesn't mean that some of it can't have hopped over to another account for part of a day each month (thus 'funding' both the other account and this account on its return).

tommysaver

Hi Buki,

It seems you are in a very similar situation to me.

I can't believe no one has suggested it yet, but I have the Santander 123 account max'd out at 20k and you earn 3% on it.

Couple that with the credit card rewards and it's better than a kick in the teeth. Since I've opened mine, I've earnt over £750 now, for doing nothing, which is nice. It shows up when you log in.

Eco_Miser

Please ignore ro2778's suggestions, they're terrible even if you did understand them.

Now, bank accounts - several banks, including Lloyds, have accounts paying between 3% and 5% Annual Equivalent Rate (AER), provided you pay in a certain amount each month (£1500 for Lloyds Club, £500 for TSB, nothing for Tesco), and pay some Direct Debits (usually 2 a month, but Tesco and TSB don't need any).

Direct Debits are where you give permission for the payee to ask for the money - usually bills like council tax and utilities, but there are alternatives.

The interest is stated as an annual rate, but it is calculated on the balance at the end of each day (so if some leaves and returns with the day it still counts), and is paid monthly.

You need to pay in at least the required amount each month, but it doesn't need to be in one lump, and it doesn't need to stay in the account - in theory, £50 could be withdrawn and paid in again each day for 30 days to meet the £1500 monthly requirement.

If you've got more than one current account, you can move the money round them all to meet the requirement. Note that you cannot do this with Direct Debits but you can do it with Standing Orders if you want the process automated, or you can do it with Faster payments.

These banks, and others, also offer high paying Regular Saver accounts (like the Club Lloyds Monthly Saver) that let you save away a regular amount each month (some, like Lloyds, let you vary the amount each month if you want to).

The accounts are all listed in the first post of https://forums.moneysavingexpert.com/discussion/5374614