Advice about maturing fixed rate saver

Clare43

Hello, I have a 2 yr fixed rate saver account maturing in April and am thinking how best to re invest the money. Current situation - have NW flex direct account getting 5% as main account - this normally has the 2.5k interest limit in it. Also have NW regular saver ( 5% ) which I put £500 into each month. Have a TSB regular saver and Halifax regular saver which both get the max amount in each month. Currently have a switch underway from Halifax reward account to First direct account to get the £125 and am in process of opening a first direct regular saver which will also get the max £300 / month in it. Have two Tesco current accounts - both with 3k in. Opened a BOS vantage account yesterday which has 1k in at present. Over past few months I've switched accounts a few times to get the bonus £ and have used TSB, co -op and Halifax. Also have 33k of stocks / shares in various L&G investment trusts including global health, uk property, Asia, European, fixed interest, global 100, global equity, global technology, growth fund, high interest fund, international index, Japan index, U.K. Special situations, US index and worldwide trust.

The maturing fixed rate saver will be around 8 k and I am thinking of topping up the first BOS vantage to 3k and opening another 2 vantage accounts and putting 3 k in each. Does this sound like a reasonable plan or does anyone have any other suggestions ??

Jo_Blogs

Clare43 wrote: »

The maturing fixed rate saver will be around 8 k and I am thinking of topping up the first BOS vantage to 3k and opening another 2 vantage accounts and putting 3 k in each. Does this sound like a reasonable plan or does anyone have any other suggestions ??

It depends on your saving goal. You seemed to have worked it all out, so it sounds like a reasonable plan.

Clare43

Jo_Blogs wrote: »

It depends on your saving goal. You seemed to have worked it all out, so it sounds like a reasonable plan.

My goal at the moment is basically to get the best return I can

Vortigern

Clare43 wrote: »

My goal at the moment is basically to get the best return I can

You probably have enough in cash accounts already. Use the 8K to top up your investments. Consider topping up your pension.

YorkshireBoy

Clare43 wrote: »

My goal at the moment is basically to get the best return I can

If you want to stay in cash...
Open 2 donor accounts.
Place 2 DDs on one, and 2 SOs on the other.
Switch the one with DDs to M&S for £170 over two years and another 5% reg saver.
Switch the one with SOs to HSBC, for £200 over the next 12 months and yet another 5% reg saver.
Drip feed the Tesco £6K into both reg savers (£3K in each) over the next 12 months.
Pocket an aggregate >4% AER on the £6K currently in Tesco...33% more than you'd get otherwise.

Clare43

Vortigern wrote: »

You probably have enough in cash accounts already. Use the 8K to top up your investments. Consider topping up your pension.

Top up the investments I already have with L&G or do you have other suggestions ?
My main pension is the NHS one - I'm a nurse and I also have 3 pension policies I've taken out over the years - one with HSBC ( now Reassure ) one with the Royal National Pension fund for Nurses ( now part of LV ) and one with Norwich Union ( now Aviva )

Clare43

YorkshireBoy wrote: »

If you want to stay in cash...
Open 2 donor accounts.
Place 2 DDs on one, and 2 SOs on the other.
Switch the one with DDs to M&S for £170 over two years and another 5% reg saver.
Switch the one with SOs to HSBC, for £200 over the next 12 months and yet another 5% reg saver.
Drip feed the £6K into both reg savers (£3K in each) over the next 12 months.
Pocket an aggregate >4% AER on the £6K currently in Tesco...33% more than you'd get otherwise.

Never shop in M&S so as the money from them is in the form of M&S gift cards ( I think ? ) I wouldn't really use it. Will look into the HSBC one - you mean the HSBC advance account don't you ? Would I get the £200 as I have a first direct account ? as it's part of the HSBC group and one of the conditions is not to have an HSBC account ?

bigadaj

Clare43 wrote: »

Never shop in M&S so as the money from them is in the form of M&S gift cards ( I think ? ) I wouldn't really use it. Will look into the HSBC one - you mean the HSBC advance account don't you ?
Am probably being a bit daft - has been a long day - but I'm not really with you on the >4% bit. Can you explain please ?

You can probably sell the gift card, and the primary purpose of opening the account is getting access to the 5% regular saver, similar for the HSBC account.

What Yorkshire boy means by >4% is that the money sits in the tesco account at 4% and moves into the regular savers at a rate of £250 per month. So 4% is the blended average of the tesco account at 3% and the regular savers at 5% is 4%, but it's actually a bit higher as the money will be in the regular saver for slightly more than half the time on average.

YorkshireBoy

Clare43 wrote: »

Never shop in M&S so as the money from them is in the form of M&S gift cards ( I think ? ) I wouldn't really use it.

Food? Birthday/Xmas presents for friends/family? The card itself as a Xmas present for someone special in two years time?...loaded with the full £170.

Will look into the HSBC one - you mean the HSBC advance account don't you ?

Yes.

Am probably being a bit daft - has been a long day - but I'm not really with you on the >4% bit. Can you explain please ?

You have £6K in Tesco. You transfer this cash at the rate of £500 per month in total into 2 x 5% reg savers.
The money spends just under half the year in a 3% account, and just over half a year in 5% accounts. Ergo the aggregate is just a little over 4%. With me now?

Clare43

bigadaj wrote: »

You can probably sell the gift card, and the primary purpose of opening the account is getting access to the 5% regular saver, similar for the HSBC account.

What Yorkshire boy means by >4% is that the money sits in the tesco account at 4% and moves into the regular savers at a rate of £250 per month. So 4% is the blended average of the tesco account at 3% and the regular savers at 5% is 4%, but it's actually a bit higher as the money will be in the regular saver for slightly more than half the time on average.

Thanks - I realised what he was saying and edited that bit out of my reply at same time as you explained

YorkshireBoy

Clare43 wrote: »

Thanks - I realised what he was saying and edited that bit out of my reply at same time as you explained

You edited in another question though, the answer to which may be found in footnote 2 of the incentive T&Cs...

https://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/HSBC_200_Switching_offer.pdf