Where to put savings?

TheDebtinator

Hi all,

I have £10k of savings currently in a low interest (1%) savings account.
I have just opened up a Nationwide FlexDirect account so £2500 will be moved to that to earn the 5% interest over the year.
I plan on opening one of their 5% regular saver accounts as well, which will end up having £3000 moved into it over the year.
I will also be putting away £105 each month, which will increase by a a few pounds each month.

Where should I keep the other £7500 while I drip feed it into the Regular saver account? Should I pay the £105 + each month into the same savings account or put it elsewhere?

I note that Metro Bank do a 1.95% 12 month fixed savings account, but obviously if I opened this, I would only be able to put £4500 in it and then leave it there for the duration and then move it and the interest somewhere else, but is there somewhere else I could keep this to make my money work better for me? Especially the £3000 that I will drip feed into the regular savings account.

Thanks.

Eco_Miser

Put the £105 and more into other Regular Savings accounts. See https://forums.moneysavingexpert.com/discussion/608697 which also has suggestions on where to keep the lump sum.

Vortigern

TheDebtinator wrote: »

Hi all,

I have £10k of savings currently in a low interest (1%) savings account.
I have just opened up a Nationwide FlexDirect account so £2500 will be moved to that to earn the 5% interest over the year.
I plan on opening one of their 5% regular saver accounts as well, which will end up having £3000 moved into it over the year.

As a couple you could have one FlexDirect each and one jointly. You could each have a Flexclusive Regular Saver.

Since you already have a FlexDirect, you could refer your partner for a switch using Nationwide's Refer a Friend scheme and pick up a switching bonus.

Alexland

I referred my wife for a switch and we each got £100 then she referred me back (you can refer an existing customer if they haven't switched to Nationwide before) and we got £100 each again so £400 total. Nationwide even switched into my existing account!

TheDebtinator

Thanks guys. My wife is already a Nationwide FlexDirect customer who referred me initially. How could I then refer her?

TheDebtinator

Vortigern wrote: »

As a couple you could have one FlexDirect each and one jointly. You could each have a Flexclusive Regular Saver.

Since you already have a FlexDirect, you could refer your partner for a switch using Nationwide's Refer a Friend scheme and pick up a switching bonus.

Hmmmm, so technically a joint FlexDirect account would allow us to then put £2500 in, but we need to pay in £1k a month from another bank.. hmmmmm

Alexland

@TheDebtinator once you have your Nationwide account then just refer her using the same method she referred you. She will need to switch a bank account from another provider into a new or existing account in accordance with their switching terms.

TheDebtinator

She is already with Nationwide and has a current account

Cotta

Drip feeding £500 per month into your regular saver with Nationwide still leaves most of it exposed to earning nothing and remember the regular saver is only for one year.

soulsaver

TheDebtinator wrote: »

She is already with Nationwide and has a current account

The referral incentive is for switching in a(n other) current account, not for opening one.

Eco_Miser

Cotta wrote: »

Drip feeding £500 per month into your regular saver with Nationwide still leaves most of it exposed to earning nothing and remember the regular saver is only for one year.

So far, the regular saver has been renewable every year, with whatever conditions were current at the time. It's apparent short duration is no reason not to take advantage of 5% while it's around.
Other Regular Savers are available at 5% and lower, and other current accounts also pay worthwhile interest, although not as much as last year.