Saving £500 a month but where do I put it?

Miss_Sparkly_Star

I want to change my regular saving account - have a bad rate at the moment with Nationwide.

I want an account where I can go into the branch - it can't be an internet based one I'm afraid.

The best ones so far where I live are Abbey - Fixed Rate Monthly Saver @7.25% AER. However you can only save a max of £250 per month.

Also, post office has Instant Saver - 6% AER on balances of over £500. (I have £500 in my current account so I can put that in right away).

So shall I split the monthly £500 into two lots of £250 and put £250 with Abbey and the other £250 with the post office? I've used up my cash ISA for this year and will need to access the money in approx 18 months time.

Also, does anyone know how to work out how much interest you get after tax is deducted on these accounts.

Thanks in advance

Aegis

For regular savings, the amount of interest over 1 year that you actually receive is not far off 6.5/12 of the gross interest rate. Factor in the tax at either 20% or 40% and you have your answer.

For basic, interest earned is Gross x 6.5 x 0.8 / 12

Miss_Sparkly_Star

Thanks - I'm a 20% tax payer. DO you think I should split the £500 into the two accounts highlighted?

Nick_C

Nationwide regular saver pays 6.75% if you pay in £200 to £250 per month and make no withdrawals. If you are saving long term, why not put £250 pm in to each of Nationwide and Abbey?

free4440273

^Glad you said that: I have a NW regular saver also and was surprised by the OP suggestion that it was a bad rate - phew!

Miss_Sparkly_Star

Thanks - I have a bonus saver that I pay into monthly with nationwide and the bonus that's paid yearly is very poor - i must admit I didn't even look at their other accounts just looked elsewhere.

Will pay £250 into abbey and then 250 into the nationwide regular saver.

YorkshireBoy

Miss_Sparkly_Star wrote: »

Will pay £250 into abbey and then 250 into the nationwide regular saver.

Using 2 accounts keeps your options open should you require access to some of your money in case of emergency.

Saving in one account, on the other hand, simplifies things somewhat. Have you considered the YBS regular saver at 7.10%?

Nick_C

YorkshireBoy wrote: »

Have you considered the YBS regular saver at 7.10%?

That would have been my recommendation too, YB, but she needs branch access and I do't know where she lives! Not sure if Nationwide will suit, as you have to pay in using the ATM unless it is out of order.

torbrex

Nationwide RS can be used with a direct debit for deposits and hole in the wall or branch for withdrawals

Miss_Sparkly_Star

There is no yorkshire building society where i live.:mad:

I think I may go for the nationwide and abbey as I really need branch access. I won't be making any withdrawals for 18 months, so defo won't want access to an ATM machine with a card..far too much temptation.

Yorkshire bs sounds good but abbey's rate of 7.25% is higher and I can have branch access. The only pain is that you can only save £250 max a month otherwise would have dumped the £500 in that each month.

So I'll be losing .25% with the nationwide instead of yorkshire bs - oh well, you can't have it all.

thanks for comments

Lazy_Runner

If it is of any help, once you have opened a YBS account, you can deposit money at a Brittania building society. They won't update your passbook, but will give you a receipt.

If you require, you can send your passbook to YBS, they will update it and return it.