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Where to put my small pot of money?.

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  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    eskbanker wrote: »
    Not sure how you're calculating that!

    If it's just one person with one of each account then that would only cater for £4K in total, and the interest would be £125 + £45 = £170.

    If there are two people then both would presumably go for the Nationwide, thereby earning £250.

    Or to be more precise, a fully-funded Nationwide FlexDirect would 'only' earn the gross rate of 4.89% as the full 5% AER is only achievable if compounding is possible, so a constant balance of £2500 would actually earn £122.25, i.e. £244.50 for a couple. Same for a £1500 balance in a TSB Classic Plus, the gross rate of 2.96% would return £44.40.

    No, I'm not sure what I did either. That'll teach me to try and do things when the room is spinning because I'm ill.

    The question was asked about a total earnd on a £5000 lump sum, so you are quite right that split over those two accounts the total would be £166.65, which is a total interest rate of 3.33%.
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