what to do with my 6k

gele

Hi all,
This will be a really simple question for lots of you but my maths isn't that great.
I have 6k in a Nationwide reg saver which is coming to an end.
Will my 6k be better transferred to a 1.3 savings account or used to feed another reg saver?
If its the latter could you suggest/advise which one for best interest.
Thanks

YorkshireBoy

No maths involved.

You put the £6K + interest lump in an account paying the best interest rate you can find (look at the main site savings account section), drip feed another Nationwide reg saver from it (at £250/mth now), and then (again via the main site) find more 5/4/3% regular savers for the rest.

gele

Thanks.

I have a virgin money saver so I will put it in there.

My nationwide flex direct is coming to and end [this I where I funded reg saver from] but I will change this to the flex plus. I know it costs but the insurances will be worth it for me.

I was going to fund new nationwide reg saver from that. I suppose I still could and open others to fund from virgin.

initial question was would I get more from just putting it in Virgin and leaving it there as opposed to a reg saver but you've answered this with a do both:)

ValiantSon

gele wrote: »

Thanks.

I have a virgin money saver so I will put it in there.

Which Virgin Money savings account? If it is the Easy Access Saver then that only pays 1.01% and you can get better. If it is the Double Take E-Saver (which does pay 1.3%) then it is no use to you for drip-feeding to a regular saver as you can only make two withdrawals a year.

The best genuinely easy access rate is 1.28% (effective rate) with ICICI Bank, although there are some reports that account operation is very cumbersome and may hinder your efforts. The next best rate is 1.22% with Ford Money.

Of course, you would get better in an interest paying current account, e.g. two Tesco accounts paying 3% on £3,000 each. You'll need 3 DDs per account, however. Alternatively, Bank of Scotland Vantage or Club Lloyds will pay you 2% on £5,000 (two DDs needed for either account) and one of these could be combined with TSB Classic Plus paying 3% on £1,500 (I know you will only have £1,000). No DDs needed for TSB, and if you get a referral from a friend then you can have a £75 switching bonus too.

gele wrote: »

My nationwide flex direct is coming to and end [this I where I funded reg saver from] but I will change this to the flex plus. I know it costs but the insurances will be worth it for me.

No! Your FlexDirect account is not, "coming to an end". The 5% interest rate on the account is coming to an end, but the account will continue to operate and pay you 1% interest. Don't close it or switch to FlexPlus.

gele wrote: »

I was going to fund new nationwide reg saver from that. I suppose I still could and open others to fund from virgin.

You can open the new Nationwide regular saver and fund it from your FlexDirect account.

The other best paying regular savers are First Direct (5% on £300 p/m); HSBC (5% on £250 p/m); Santander (5% on £200 p/m); M&S (5% on £250 p/m). You need a linked current account for all of these. Too many account applications might not go well in a short period of time, but a couple should be okay assuming you have a decent credit history and meet their profile of a good customer.

If you open either the Bank of Scotland account or the Club Lloyds account then you will have access to their regular savers. They don't pay quite as much, but they are still better than normal savings rates. Bank of Scotland pays 2.5% on £250 p/m and Club Lloyds pays 3% on £400 p/m. Clearly this makes the Club Lloyds current account the better option out of the two banks also. In addition, with the TSB account you can access their regular saver paying 2% on £250 p/m, although you can get a better rate from Leeds Building Society (2.55% on £250 p/m) and Virgin Money (2.25% on £250 p/m).

gele wrote: »

initial question was would I get more from just putting it in Virgin and leaving it there as opposed to a reg saver but you've answered this with a do both:)

Yes, do both, but you need to build a strategy using the accounts listed to maximise the return.

gele

ValiantSon

gele

ValiantSon
I missed your reply and apologise. Thank you for your detailed info.
I posted another similar question on a new thread this morning as I am trying to get the best returns from a few accounts but confusing myself !
Anyway one thing in particular I picked up from your post was regarding the flex direct.
I realise the account will not close but I will not get 5% anymore. I am not going to switch to flex plus but was still thinking of opening that separately [3 iphones in family, breakdown cover and travel ins for a family worth the £13 pe rmonth I think plus I keep reg saver]
I could however then switch flex direct at 1% to a high interest current account [thinking first direct as no dds needed I believe]
and open a reg saver there as well.
Does this sound like an ok plan?

YorkshireBoy

gele wrote: »

ValiantSon
I missed your reply and apologise. Thank you for your detailed info.
I posted another similar question on a new thread this morning as I am trying to get the best returns from a few accounts but confusing myself !
Anyway one thing in particular I picked up from your post was regarding the flex direct.
I realise the account will not close but I will not get 5% anymore. I am not going to switch to flex plus but was still thinking of opening that separately [3 iphones in family, breakdown cover and travel ins for a family worth the £13 pe rmonth I think plus I keep reg saver]
I could however then switch flex direct at 1% to a high interest current account [thinking first direct as no dds needed I believe]
and open a reg saver there as well.
Does this sound like an ok plan?

Answering for ValiantSon (as they're not online), it does sound like a plan, yes.

But a better plan would have (almost certainly*) been to cut short your 5% FlexDirect and switch it to HSBC, for a £200 incentive and 5% regular saver (albeit at £250, rather than £300, per month).


* eg if the 5% expires in the next few weeks.

gele

Yorkshire Boy
I'm not sure I would qualify for HSBC as fairly low income so might not be accepted and if I was it would mean quite a bit of juggling funds to meet requirements, I see your reasoning though.
I have a TSB already and Tesco requires 3 dds so again a bit of a nuisance [interest paying accounts] so that's why I thought First Direct.
Flex Direct 5% finishes 28th April.
I'm happy you think its generally ok though . Just hope two current account applications in quick succession -Flex plus and First Direct wont be an issue.
Thanks again,

YorkshireBoy

You said on your other thread that you had 3 iPhones in the family. Are joint current accounts, or sole current accounts in partner's name, not an option for your lump sum(s)?

gele

Joint account for HSBC might be possible if that's what you mean.
Husband is self employed but combined income should work. Will think about that.

RG2015

gele wrote: »

I could however then switch flex direct at 1% to a high interest current account [thinking first direct as no dds needed I believe]
and open a reg saver there as well.

The First Direct regular saver at 5% is a good option but the required current account is not a high interest current account as it does not pay any interest.