Looking at my accounts again

gelato_cat

Hey all

It's been a while since I looked at my accounts properly - and actually a while since I've been on the forums. Having come back and noticed a lot of new products on the market, I've realised that it's probably time I had another look at my accounts...

I currently have:

Halifax High Interest Current Account - 6.17%: £250.00 (salary goes in here)
Just applied for a First Direct account so I can then get a Regular Saver next month.

Halifax Regular Saver - 7.00%: £1750.00 (£250 goes in every month. Matures every March)
Yorkshire BS Regular Saver - 7.10%: £4500.00 (£500 goes in every month)
Lloyds Regular Saver - 8.00%: £4100 (matures September next year with £250 going in each month)
A&L Regular Saver - 12.00%: £3000.00 (12th payment made: matures next month)
Will apply for a First Direct Regular Saver next month.

Icesave - 6.30%: £25000.00 (where I put leftover money at the end of the month)
Halifax Web Saver - 5.30%: £1.00
Yorkshire BS Internet Saver - 6.20%: £1.00
Bradford and Bingley Internet Saver - 6.40%: nothing yet, waiting for it to be opened. Will probably stop depositing with Icesave and use this instead.
ING - 5.40%: £0 (those jokers)

Yorkshire BS e-ISA - 6.05%: £25700.00
NS&I Direct ISA - 6.30%: £3100.00 (last year)
Egg ISA - 6.05%: £3000.00 (this year)


I was going to get an Abbey current account but having read about their customer service I don't think I want to take the risk!

I've read about the new First Direct Regular Saver - excellent timing as my A&L one is about to mature so I will get one of those next month and pay £300 into it each month.

Once my B&B account is set up I will use it as my main "leftovers" account. The other web savers are there for convenience/to fulfil account terms.

I did try to get a Barclays ISA this year but the experience was so painful I cancelled the application and went with Egg instead. I am now debating whether or not to consolidate my YBS and Egg ISAs and move them to a new provider (eg Kent Reliance) but I'm not sure it's worth it for the interest I would gain.

Any thoughts/suggestions on the above? I could probably do a few more Regular Savers by "recycling" some of my Icesave cash, but apart from that I'm not sure how else I can maximise my returns using savings accounts (I don't want to put money into long-term investments).

In general I am a bit loathe to go with fixed-rate, fixed-term stuff even if it's just for a year as I'm worried I'll be stuck with a cr*p interest rate if the base rises. What are people's feelings on this?

Thanks in advance!

Suze

Nick_C

Suzie; personally I think interest rates will fall within the next 12 months, or worst case scenario will not rise, so consider tying some money up in fixed rate bonds. For example -
Halifax Web Saver - 3 months - 6.88% AER
Derbyshire BS postal - 11 months - 6,86% AER with monthly interest option

Also, consider NS&I index linked certificates. Notionally, they are for 3 years but you can cash them in after 1 year. Interest rate = RPI +1.35% tax free.
With RPI currently at 4.1%, these bonds are worth 6.8% gross to basic rate tax payers, or 9.08% for higher rate tax payer. If you are a higher rate tax payer, this is a no brainer.

free4440273

^i agree, i think the BofE will cut soon and into next year also: they just keep fiddling the bloody inflation figures anyhow (CPI at 1.8 per cent:rotfl:). that's why i'm locking my monies into a nationwide bond for one year. would have preferred two years actually, but nationwide don't offer them at the moment.

gelato_cat

Thanks for this - what % do you get on the Nationwide bond?

Suze

free4440273 wrote: »

^i agree, i think the BofE will cut soon and into next year also: they just keep fiddling the bloody inflation figures anyhow (CPI at 1.8 per cent:rotfl:). that's why i'm locking my monies into a nationwide bond for one year. would have preferred two years actually, but nationwide don't offer them at the moment.

gelato_cat

Thanks for this. I spose if I had to choose between rise or fall, I guess the rates will have to fall as they're relatively high at the moment (and it's too much to hope that they'll stay the same for a while). I hadn't looked at any Halifax stuff for ages so thanks for the heads up on the fixed rate web saver. Funnily enough, I had one of these a year ago when the rate was 5.25%, which I thought was loads at the time! LOL!

Do you have one of these? If so, please can you remind me how easy they are to set up? ISTR setting up my IASA was a right nightmare last year and can't remember if I was able to set up the web saver instantly online. I don't want to have to leave lots of money in limbo while they sort their lives out opening the account.

To be honest I've tried to get my head around the NS&I inflation-beating tax-free stuff and still don't understand it. I am a lower-rate taxpayer but am willing to try this if it will give me a good return.

Suze

Nick_C wrote: »

Suzie; personally I think interest rates will fall within the next 12 months, or worst case scenario will not rise, so consider tying some money up in fixed rate bonds. For example -
Halifax Web Saver - 3 months - 6.88% AER
Derbyshire BS postal - 11 months - 6,86% AER with monthly interest option

Also, consider NS&I index linked certificates. Notionally, they are for 3 years but you can cash them in after 1 year. Interest rate = RPI +1.35% tax free.
With RPI currently at 4.1%, these bonds are worth 6.8% gross to basic rate tax payers, or 9.08% for higher rate tax payer. If you are a higher rate tax payer, this is a no brainer.

superstar_2

Suzey wrote: »

Do you have one of these? If so, please can you remind me how easy they are to set up? ISTR setting up my IASA was a right nightmare last year and can't remember if I was able to set up the web saver instantly online. I don't want to have to leave lots of money in limbo while they sort their lives out opening the account.
Suze

Hi Suze,

It is relatively easy process. Firstly, you need a variable Web saver acc at the moment, which you have. Then, go on online and open up a new account[fixed web saver a/c]. It should just take few mins, if you are already a online customer.

Say, you went for the 3 months option - at the end of 3 months, you get your interest and your money+interest gets transferred automatically to your variable web saver a/c.

Hope that was some help!

gelato_cat

Thanks. Do you know if I have to make the opening deposit as soon as I open the account? I know that might sound like a dumb question but I've been burned by Halifax before - I transferred several thousand into my Halifax current account, ready to put into savings and they then took a month to open the account - I'd no idea when they were going to take the money, so it had to sit there earning no interest. CS were no help either

Suze

superstar wrote: »

Hi Suze,

It is relatively easy process. Firstly, you need a variable Web saver acc at the moment, which you have. Then, go on online and open up a new account[fixed web saver a/c]. It should just take few mins, if you are already a online customer.

Say, you went for the 3 months option - at the end of 3 months, you get your interest and your money+interest gets transferred automatically to your variable web saver a/c.

Hope that was some help!

superstar_2

Suzey wrote: »

Thanks. Do you know if I have to make the opening deposit as soon as I open the account? I know that might sound like a dumb question but I've been burned by Halifax before - I transferred several thousand into my Halifax current account, ready to put into savings and they then took a month to open the account - I'd no idea when they were going to take the money, so it had to sit there earning no interest. CS were no help either

Suze

Hi Suze,

Sorry to hear about your previous experience. May be they are better now that they are with BoS.

In this case when you open the fixed web saver, the deposit can only be made ONCE and at the time of opening. So, you cant add in later and you shouldnt have problems like before.

Hope helps!

gelato_cat

Cool - thanks. I will open one in a couple of weeks when I have a bit of time to shift the money around.

The problems I had were only last year but it was nice of you to give them the benefit of the doubt!

Suze

superstar wrote: »

Hi Suze,

Sorry to hear about your previous experience. May be they are better now that they are with BoS.

In this case when you open the fixed web saver, the deposit can only be made ONCE and at the time of opening. So, you cant add in later and you shouldnt have problems like before.

Hope helps!

Jonbvn

Suzey wrote: »

To be honest I've tried to get my head around the NS&I inflation-beating tax-free stuff and still don't understand it. I am a lower-rate taxpayer but am willing to try this if it will give me a good return.

Suze

Suze,

As per my signature, I am a devotee of ILSC. I am sure you can find most of the answers to your questions here. If you have any further questions, please post them here. The most important thing is that you MUST hold these certs for a minimum of one year to get any return.

Nick_C

Suzie, only just picked up on the fact you have a Halifax Current account. Think about a Sainsbury's IASA paying 6.25%. Not the top rate, but very fast transfers in and out of your Halifax accounts, so a particularly good feeder account for your reg savings accounts. Transfers between Sainsbury's/Halifax take place over night, but are backdated, so no loss of interest.

Index Lined NS certificates - current return is equivalent to 6.8145% for basic rate tax payers with RPI inflation at 4.1%. Very good rate, but not as good as the return in some of your RS accounts. Viability of these accounts for basic rate tax payers depends on the difference between RPI and interest rates, so you can't be sure of getting the top rate of return but you are guaranteed to be a saver and not a loser.