Savings account £500 + per month

darroch

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

Eco_Miser

A combination of Nationwide FlexDirect current account and Flexclusive regular saver would give you 5% on £2500 plus £500 pm, with withdrawals permitted.

https://forums.moneysavingexpert.com/discussion/5374614 lists other high interest accounts you could put the other £2500 in.

Cotta

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.

https://forums.moneysavingexpert.com/discussion/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

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

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

If i have to put £1k into the current account every month, can i transfer from my BoS account then straight back?

darroch

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

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

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

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

chockydavid1983 wrote: »

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!