Earned Interest- Do What With It?

Audaxer

savingpennies wrote: »

Even if I only earned £10 a month interest, I'd make sure it was earning as much interest as possible. I and my OH utilise several interest paying accounts and keep the maximum in each. We also use any RS that are attached to the accounts. Interest earned each month is withdrawn and added to another regular saver. Last year for us, the interest on our current accounts alone amounted to over £600 pounds, not (to us anyway) an inconsiderable sum.
We started saving like this years ago but we've only managed to get to this stage by making sure every penny was working for us

That's good that you have been saving hard for years. Hopefully you have significant sums invested in a portfolio of globally diversified funds in addition to all your cash savings or you will be losing out on income and growth over the long term, despite all the savings interest you have received.

Drucifer

I Really appreciate all the responses guys, I find it very interesting to see how others manage their money and the differing attitudes to even small amounts of interest.

For me personally, I think I'll just end up throwing the interest into my Vanguard ISA, I don't earn enough to max out a regular saver on top of my Vanguard contributions, spending it I feel would be a "waste", as I could use the "free" money to earn more money, even if it is a small amount, I figure after 1 year I'll have invested a further £120 that I otherwise wouldn't have. I think disregarding even small amounts of interest can be quite a costly mistake, over an investing lifetime I think a lot of the "small" amounts could really add up.

Here's hoping there's a similar deal with another bank by the time the 12 month term ends with Nationwide.

AnotherJoe

Its money. You might as well ask "what do you do with money".