Savings account £500 + per month

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Hi all,

What's my best option for a savings account with a £5k starting balance depositing £500 per month with the option to withdraw at any time?

I've been looking at the Limited Issue Online Access Account with Leeds building society.

Currently have a measly Bank of Scotland 0.25% cash ISA which is reducing to 0.05%. All my main accounts are with them.

Thanks
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  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    A combination of Nationwide FlexDirect current account and Flexclusive regular saver would give you 5% on £2500 plus £500 pm, with withdrawals permitted.

    http://forums.moneysavingexpert.com/showthread.php?t=5374614 lists other high interest accounts you could put the other £2500 in.
    Eco Miser
    Saving money for well over half a century
  • Cotta
    Cotta Posts: 3,667 Forumite
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    Eco_Miser wrote: »
    A combination of Nationwide FlexDirect current account and Flexclusive regular saver would give you 5% on £2500 plus £500 pm, with withdrawals permitted.

    http://forums.moneysavingexpert.com/showthread.php?t=5374614 lists other high interest accounts you could put the other £2500 in.

    What does Flexdirect pay? I have the regular saver at 5% with Nationwide but didn't think there was anything else on offer?
  • darroch
    darroch Posts: 40 Forumite
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    Cotta wrote: »
    What does Flexdirect pay? I have the regular saver at 5% with Nationwide but didn't think there was anything else on offer?

    Looking at it, it's 5% for new accounts for the first 12 months then 1% after.

    http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts
  • Cotta
    Cotta Posts: 3,667 Forumite
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    darroch wrote: »
    Looking at it, it's 5% for new accounts for the first 12 months then 1% after.

    http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts



    To avail of this £1000 must be paid in each month?
  • darroch
    darroch Posts: 40 Forumite
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    If i have to put £1k into the current account every month, can i transfer from my BoS account then straight back?
  • darroch
    darroch Posts: 40 Forumite
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    Cotta wrote: »
    To avail of this £1000 must be paid in each month?

    Yes that what it reads. I'm thinking I would have my £2500 sitting there and from my main Bank of Scotland account, transfer £1k in when I get paid then transfer back straight after. That way it would keep my spending money and savings money separate.
  • Cotta
    Cotta Posts: 3,667 Forumite
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    darroch wrote: »
    Yes that what it reads. I'm thinking I would have my £2500 sitting there and from my main Bank of Scotland account, transfer £1k in when I get paid then transfer back straight after. That way it would keep my spending money and savings money separate.

    Sounds like a plan, at 5% interest paid monthly that would give you £10 interest?
  • darroch
    darroch Posts: 40 Forumite
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    Cotta wrote: »
    Sounds like a plan, at 5% interest paid monthly that would give you £10 interest?

    What would the estimated balance be at the end of the 12 months based on 12 monthly deposits of £500 totalling £6,000?
    The balance on 12 monthly deposits of £500 paid on the first day of each calendar month with an interest rate of 5.00% AER/gross p.a. (variable) would be £6,162.50.
    This estimated balance is for illustration only and assumes that:
    Interest is paid into the account.
    No further deposits or withdrawals are made.
    There is no change to the interest rate.
    Individual circumstances do not change.
  • chockydavid1983
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    I assume they were referring to the the interest you get on £2.5k in Flex Direct each month?
    That would be (£2.5k x 0.05) / 12 = £10.42 (roughly, varies slightly month to month)
  • darroch
    darroch Posts: 40 Forumite
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    I assume they were referring to the the interest you get on £2.5k in Flex Direct each month?
    That would be (£2.5k x 0.05) / 12 = £10.42 (roughly, varies slightly month to month)

    Yes, sorry correct, that was the savings account i was quoting!
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