Natwest Savings Builder

w0z

If that isn't a typo that doesn't seem the best way unless you meant moving £10,000 at or around 1st month and starting again. If you move only £600 you'll lose interest on £9400 for a whole month..
You could move £10k out after the 2nd to last working day of the month put it in Marcus or similar and pay £9350 in a month later leaving your £50 S.O. to continue running.

silvermum wrote: »

I've had this account for a couple of years and use it to store cash which I may or may not need in the next 12 months. My strategy has been to start by putting £9400 in and then adding £50 each month for the next year, then at the 12 month mark moving £600 out and starting again.
Broadly it feels as if I'm maximising my interest whilst not having to fiddle around with standing orders flying around in and out of my accounts.

I'm sure someone will be along soon to explain the exact maths i.e. risk/ reward calculation for this strategy, but broadly, the loss of about £12 interest in the month I 'reset' it is something I can live with.

I know I could perhaps find a current account paying a straight 1.5% without restrictions, but I already bank with NatWest so I find this a useful account to have in the same 'stable'.

Preedyboi

Natwest savings rates are abysmal! I realised mines only paying 0.35%!

Did you watch Martin Lewis’s prog the other night? He recommended Goldman Sach’s ‘Marcus Account’ offering 1.35% with no particular withdrawal restrictions etc...

surreysaver

Preedyboi wrote: »

Natwest savings rates are abysmal! I realised mines only paying 0.35%!

Did you watch Martin Lewis’s prog the other night? He recommended Goldman Sach’s ‘Marcus Account’ offering 1.35% with no particular withdrawal restrictions etc...

All banks have abysmal rates, and some have relatively good ones. The NatWest Savings Builder, being discussed here, pays 1.5% on up to £10k if you manage it properly

ctdctd

soulsaver wrote: »

I'm glad this thread was rekindled … because the dynamic has shifted in favour of this account for me.

I cba with the optimised interest shenanigans; so I just bunged £10k (2x£5k) in and continue to add £50 pm by standing order.

That gives £10k @1.5% which would be a (the?) top easy access ac.

And I've got about £1k built at £50 pm up at 1%...which today is also pretty good for zero admin.
TTKIAs come along to tell me how much better I could have done...

Except the £1K above £10K is only earning 0.2%
https://personal.natwest.com/personal/savings/savings-builder.html

soulsaver

ctdctd wrote: »

Except the £1K above £10K is only earning 0.2%
https://personal.natwest.com/personal/savings/savings-builder.html

Thanks - don't know where I got that from.
It'll have to Marcus or elsewhere for a month...and back down to £10k …
Glad I posted or I'd still be letting it run under the same impression.

silvermum

w0z wrote: »

If that isn't a typo that doesn't seem the best way unless you meant moving £10,000 at or around 1st month and starting again. If you move only £600 you'll lose interest on £9400 for a whole month..
You could move £10k out after the 2nd to last working day of the month put it in Marcus or similar and pay £9350 in a month later leaving your £50 S.O. to continue running.

"If you move only £600 you'll lose interest on £9400 for a whole month.." - that's what I meant about being willing to accept a small loss in return for not having to faff around with transfers in and out of different bank accounts - it only works out at about £12 in lost interest for that month.

I think Marcus pays less now anyway - 1.35%?

soulsaver

silvermum wrote: »

.

I think Marcus pays less now anyway - 1.35%?

True, 0.15% on 10k for 1 month isn't a big loss, however many have locked in 1.5% for a second year before the bonus drop.

paul235

This account came with an atm card , apparently they have stopped issuing as mine expired recently and was not re-issued. They claimed to have notified but I only found out when I called.

w0z

Just curiosity, do you remember whether the original application gave you the choice of having a card, it's quite unusual to have an atm card with this type of account. (I can confirm that it doesn't offer a card now but then I never expected one!)

paul235 wrote: »

This account came with an atm card , apparently they have stopped issuing as mine expired recently and was not re-issued. They claimed to have notified but I only found out when I called.

w0z

I agree it's not much ££ but given that people are chasing the smallest of interest rate improvements, (because rates are so poor) suffering what is effectively a 0.125% annual penalty for mistiming (by what could be a few days) seems pointless if it's avoidable, but everyone to their own.

silvermum wrote: »

"If you move only £600 you'll lose interest on £9400 for a whole month.." - that's what I meant about being willing to accept a small loss in return for not having to faff around with transfers in and out of different bank accounts - it only works out at about £12 in lost interest for that month.

I think Marcus pays less now anyway - 1.35%?