Small steps for a little saver

FunLovinCriminal

We are really trying yo get better at this.
Hope you all can advise.
OH currently saves £50 per month in a Tesco account. Earns 0.01% interest.
All the accounts we look at need dd or losds more being paid in
How can we make her account work harder?
FLC

Superscrooge

Are you sure you are only getting 0.01% interest with Tesco?

Tesco savings accounts are listed on the below link and all seem considerably higher than this?

https://www.tescobank.com/savings/compare-rates.html

If you want to avoid minimum monthly pay ins and DD's, Tesco internet saver is currently paying 1.3% interest for first 12 months

https://www.tescobank.com/savings/flexible/internet-saver/index.html

FunLovinCriminal

Its a very very old account. Over 10yrs old. Never changed.
We looked into it and thats whar they told us.

PeacefulWaters

FunLovinCriminal wrote: »

Its a very very old account. Over 10yrs old. Never changed.
We looked into it and thats whar they told us.

And there is the first lesson.

Know you're rate.

Know what the best buys are.

Switch regularly.

datlex

Why not put into a monthly saver, there are several out there. Some don't need you to have a linked main account.

Kim_13

Direct debits and minimum pay ins are required by current accounts, but not savings accounts. Unfortunately, current accounts are the go to place to get a decent rate of interest on an existing lump sum.

You may find the MSE guide to Regular Savings accounts of use in terms of where to save going forward: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts. These accounts do tend to be for a fixed period after which they are converted to a standard savings account, but most providers will allow you to open a fresh account to continue saving. The lump sum from the last year can also be moved elsewhere for better interest.

Current accounts with minimum pay ins can be satisfied by moving the required money in and then straight back out again to the account that it came from. TSB Classic Plus will pay 3% on £1,500 with no Direct Debits. You just need to have paperless enabled and cycle £500 through as above.

If you prefer to avoid current accounts altogether, the MSE guide to savings accounts gives a round up of what's available: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest