Where to move?

Tea&Biscuits

Im really confused, and quite anxious that I do the best thing I can with the little amount of money I will have saved by the end of this year.

I currently have £2k in TSB classic (5%) and by the end of the year will have £3030 in their reg saver. (5%)
I also will have approx £1k in the HSBC reg saver (4%)

I am confused as to what to do with these amounts when the accounts anniversaries come up. I currently am able to save £500 a month. If not a little more.

Initially I'm thinking of opening an RBS vantage account with £5k and use the other £1k to fulfil the Nationwide criteria to begin saving again there with two accounts.

Is this a good idea, I'm not very good at working out the best way forward with interest rates and things but it is absolutely crucial I do my best with this money.

Hope someone can help a bit.

Thank you

YorkshireBoy

Your first move - and I mean straight away - should be to secure a Nationwide FlexDirect account and their Flexclusive Regular Saver, both currently paying 5% AER.

These will take £3K in the first month and then £500 a month going forward.

I fully expect the regular saver rate to be cut before 1st December, which is when those of us who opened the account at launch will go back for a second bite!

As for the rest, well 3% is probably the best and Tesco haven't made any rate announcement yet.

There are other 5% regular savers, but all require an otherwise wasteful current account to gain access. Depends how much effort you're prepared to put in.

jimjames

The other question is what you need the money for and when? If you already have sufficient emergency funds then you could look at other options like S&S ISAs if the money isn't needed for at least 5 years

Tea&Biscuits

Thank You for your replies.

I have just applied for the Nationwide account, and hopefully account opening shouldn't take too long after I've sent in all the documents they want to see! Then I can get on and open the reg saver too.

Next on the list is to open a Tesco current account as you suggested, looks the easiest option.

Thank You so much for your help

YorkshireBoy

Tea&Biscuits wrote: »

Next on the list is to open a Tesco current account as you suggested, looks the easiest option.

Tesco currently allow two accounts. With all the changes announced recently, they may choose to leave their account paying 3% and stay joint top of the table with TSB...but with the added advantage of twice the interest paying limit...but limit them to one per customer.

So maybe open two whilst you can?

No inside knowledge, just giving you my thoughts.

Westie983

Going by the clause that TSB have just sent out about duplicate accounts, i'm sure you are right YB, The other one is Halifax wonder if they will stop duplicate accounts paying the reward too...

Just a waiting game, but yes try to open two Tesco accounts while you can Tea&Biscuits as they dont require any monthly funding, not that this is a problem as you can 'manipulate' this funding criteria at little bit.

Everything is going down, wonder if its worth a punt at PB?

Westie983

Tea&Biscuits

Thank You all for being so kind.

I genuinely find this really complicated and confusing. You've made something that is super important for my little family so much easier to understand and therefore get the best for us.

Thank You

xylophone

With regard to the TSB Classic Plus,

https://www.theguardian.com/money/2016/oct/13/tsb-lloyds-slash-interest-rates-current-accounts-santander