Making my money work

Dodger

I currently have about £35,000 in my Santander 123 account and am reaping the benefits till they drop the rate to 1.5% in November (will review the best account then). Also all my bills are on DD with Santander too so earning from them as well. As I only get interest from the account up to the maximum of £20,000 where is the best place to save the £15,000 excess bearing in mind I already have a Stocks and Shares ISA. This was set up in the 2015/16 tax year and have not topped up the account for this tax year. Do I just use the excess to top up the Stocks and shares ISA or is there another route as hate to have money not working for me? If it helps I am a basic rate tax payer recently retired with my pension being paid into my Santander account.

xylophone

You could consider other high interest current accounts (while they're still around....).

Dodger

Already thought about other high interest current accounts but all very confusing and all seem to quote variable interest rates or want you to transfer your bank account to them.

teddysmum

Dodger wrote: »

Already thought about other high interest current accounts but all very confusing and all seem to quote variable interest rates or want you to transfer your bank account to them.

You don't have to transfer. That is only to gain the separate transfer bonus.


Nationwide give a fixed 5% on £2500 for a year, but their saver rate is variable, while others have a fixed saver rate (be quick to fix before rates drop) but variable rates on the current account.


Tesco as no in or out conditions and the requirements for other accounts are quite clear.

Dodger

Thanks for the reply Teddysmum....are you talking about the Nationwide Flexclusive Regular Saver?? As its the only one that seems to offer 5%...

However their criteria states...

Flexclusive Regular Saver is for individuals aged 18 or over who meet one of the following two criteria:
Hold a FlexOne account and be aged 18 or over, or hold a FlexAccount and have:
Been paying in £750+ a month for the last 3 months (excluding transfers from any Nationwide account held by you or anyone else); or
Completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team in the last 4 months; or
Hold a FlexStudent account and have paid £1,500 in at least 2 transactions in the last 12 months; or
Hold a FlexDirect or FlexPlus account.

Although I do have a FlexAccount but have not paid in £750+ per month for the last 3 months...do you know if they will accept a lump sum of £2250 (3x£750) followed by monthly payments of £500 for the 12mnth period??

As I said...all very confusing !!!

ColdIron

No, the FlexDirect current account

Dodger

Just checked out the FlexDirect....says.....

Access to 5% AER (4.89% gross p.a) interest on in-credit balances of up to £2,500 (fixed for the first 12 months) but you must pay in at least £1,000 per month.....

So if my calculations are correct I will be paying in £12000 over the 12mnth period but only getting the 5% interest on the 1st £2500 so again the account balance of £9500 will not be earning me anything. Or am I missing something here?

forestwn6

Yes you are. Move the £1000 out a couple of days later. Also look into having a joint account as well.

Dodger

Ahh....I see !!! Very sneeky but I like that idea:T:):T

bigadaj

Dodger wrote: »

Ahh....I see !!! Very sneeky but I like that idea:T:):T

Not sneaky, it's a current account !!!!!!!

The whole process isn't really very complicated, if it's too much of a prob,em for you or too confusing then probably best avoided.

B_G_B

bigadaj wrote: »

Not sneaky, it's a current account !!!!!!!

You beat me to it. And put it so much better than I could have.