Regular Saver Thread **New and Restarted**

ValiantSon

BMTH wrote: »

Guys, what would be the best option to do with 10k?

That's a pretty hard question to answer without more information (and probably best addressed in a thread of its own).

It depends on which accounts you already have (e.g. interest earning current accounts; easy access savings accounts; regular savings accounts); how long you can leave the money locked away; and whether you wish to remain totally in cash, or would consider a long term investment in stocks and shares.

schiff

I'm on friendly terms with a MOS in my branch, first name terms an' all. But on the phone yesterday to arrange an appointment, she did still ask for my full address, DOB, etc. Same story when opening an account when she can see me in the flesh. So to speak.

I don't mind as she always cuts out the 'conditions etc' palaver

ValiantSon

schiff wrote: »

I don't mind as she always cuts out the 'conditions etc' palaver

That's not very wise of her. She is failing in the banks duty to ensure that customers are aware of terms and conditions. This is a failure of regulatory compliance. The ID stuff is just bank policy to meet KYC, but she does know you, and they have already carried out KYC checks, so what she does insist on doing is not necessary (the banks' policy is over the top), but what she doesn't bother with is necessary to ensure regulatory compliance. Her manager needs to have a word with her.

schiff

I tell her that I know all the T&Cs and the protection of my money stuff and that I don't need to go through it again. If necessary, I would sign a statement to that effect.

BMTH

ValiantSon wrote: »

That's a pretty hard question to answer without more information (and probably best addressed in a thread of its own).

It depends on which accounts you already have (e.g. interest earning current accounts; easy access savings accounts; regular savings accounts); how long you can leave the money locked away; and whether you wish to remain totally in cash, or would consider a long term investment in stocks and shares.

I have one current account with Natwest which I don't even think about the interest because it's awful. (No other savings accounts with any other bank, credit card etc)

I don't want to touch it, it's inheritance money. If anything I'll take 2k out of it now then shut up the rest of it. Don't want to risk losing it, that's for sure!

ValiantSon

schiff wrote: »

I tell her that I know all the T&Cs and the protection of my money stuff and that I don't need to go through it again. If necessary, I would sign a statement to that effect.

The bank still wouldn't be covered. Her manager needs to speak to her.

ValiantSon

BMTH wrote: »

I have one current account with Natwest which I don't even think about the interest because it's awful. (No other savings accounts with any other bank, credit card etc)

I don't want to touch it, it's inheritance money. If anything I'll take 2k out of it now then shut up the rest of it. Don't want to risk losing it, that's for sure!

The best return on £10,000 in cash is achieved through current accounts. You'll need to move money around each month to fund them as required (the money doesn't have to stay in the account for more than a second), and some will need direct debits too. In order:

TSB Classic Plus - 5% on £1,500 (open in branch only, at the moment). Fund with £500 per month. No direct debits required.

Nationwide FlexDirect - 5% on £2,500 (for 12 months). Fund with £1,000 per month. No direct debits required. (If you know someone with a Nationwide account then they can refer you and you each get £100, but doing this requires you to switch an account with at least two direct debits on it. You could switch your NatWest account as it isn't earning you anything).

Tesco - 3% on £3,000 (until April 2019 - uncertain what will happen after that). Fund with £750 per month. Three direct debits required. You can have two accounts (so £6,000).

That's £10,000 dealt with. Effective interest rate across all accounts is 3.8%, but if you move £250 per month from your Tesco account into the Nationwide regular saver, then you will actually earn more like 4.19%. (A the end of the year you can move the money from the regular saver back to the Tesco account - or whichever current account is paying best then - and start over again).

Additionally, the Nationwide FlexDirect allows you to open a regular saver paying 5% on £250 p/m. You can open a new one each year, so it really may well be worth switching your NatWest account to Nationwide, and using this as your main current account, rather than seeing it as just a one year deal.

BMTH

Thank you for that, really appreciate it.

apt

For savers current accounts aren't what they were a couple of years ago as a source of interest. Lloyds, Santander, Halifax all a pale shadow of what they used to be. Nationwide now strictly 1 year only at 5%. TSB only went back up to 5% to appease customers for recent problems. Tesco will probably join the downward trend when the 3% guarantee runs out. Regular savers will probably have to be used more and a string of Virgin regular savers paying 3% would be useful.

MDMD

EachPenny wrote: »

I've found Virgin Money to be one of the fussier banks for wanting ID for opening accounts in-branch.

Since they changed their IT system earlier this year I've had to produce ID each time I open an account. My passport is expired (also waiting for Brexit) and the options for other 'List A' documents is limited. List B documents allows a wider range of options including utility bills etc. The policy in my area (Virgin operate branches on a regional basis) is that every new account requires both a List A and a List B document.
https://uk.virginmoney.com/virgin/downloads/facetofaceid.pdf

I cslled the Reading branch and they verified me electronically and said i just needed to provide passport. But I’ve been in the London Haymarket ‘store’ who required paper ID.