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£250pcm in HSBC regular saver or online saver? Interest rates hurting my head :/
Surama
Posts: 14 Forumite
Hello!
I have an HSBC Online Saver account at 6.25% interest. Current balance is £18,500. This represents £15k to be spent on doing up the house (ie a long-term investment), and 3.5k of my own savings over the past year which I am planning to withdraw and put in my ISA next tax year.
This savings account does not pay interest in any month a withdrawal is made, so now I have 'set aside' next April's £3000 ISA allowance and the Online Bonus Saver (which has a 6% rate and pays 3% on a month when a withdrawal is made), has been introduced I will be putting further savings in the Online Bonus Saver account so it can be accessed without penalty if necessary. It would be nice to be able to save another £3000 for the ISA in the OBS so I don't have to take the money from my Online Saver come April, but this is probably not going to happen!
However I notice that their regular saver offers 8% - you open it with a max of £250 and save a regular amount every month up to £250 - I believe you have to state the amount at account opening. This covers twelve months (at 8%).
My question is!
I anticipate being able to save £250 a month for the next 12 months, easily. So I was thinking I'd channel £250pcm into the regular saver and any more 'extra' money at the end of the month would go into the Online Bonus Saver account, with the Online Saver left untouched until April.
Then I thought that, if I can commit to an inaccessable £250pcm, perhaps it would be better off in the Online Saver - currently making about £80pcm in interest - as although the interest rate is not as attractive I don't know whether the £250 would represent more money-as-interest if added to the £18500 pot.
Basically I don't know if it's better to get 6% on the larger amount, swelling by £250pcm, or 8% on an incrementally-growing account.
Thankyou very much for reading and for any help you can offer!
I have an HSBC Online Saver account at 6.25% interest. Current balance is £18,500. This represents £15k to be spent on doing up the house (ie a long-term investment), and 3.5k of my own savings over the past year which I am planning to withdraw and put in my ISA next tax year.
This savings account does not pay interest in any month a withdrawal is made, so now I have 'set aside' next April's £3000 ISA allowance and the Online Bonus Saver (which has a 6% rate and pays 3% on a month when a withdrawal is made), has been introduced I will be putting further savings in the Online Bonus Saver account so it can be accessed without penalty if necessary. It would be nice to be able to save another £3000 for the ISA in the OBS so I don't have to take the money from my Online Saver come April, but this is probably not going to happen!
However I notice that their regular saver offers 8% - you open it with a max of £250 and save a regular amount every month up to £250 - I believe you have to state the amount at account opening. This covers twelve months (at 8%).
My question is!
I anticipate being able to save £250 a month for the next 12 months, easily. So I was thinking I'd channel £250pcm into the regular saver and any more 'extra' money at the end of the month would go into the Online Bonus Saver account, with the Online Saver left untouched until April.
Then I thought that, if I can commit to an inaccessable £250pcm, perhaps it would be better off in the Online Saver - currently making about £80pcm in interest - as although the interest rate is not as attractive I don't know whether the £250 would represent more money-as-interest if added to the £18500 pot.
Basically I don't know if it's better to get 6% on the larger amount, swelling by £250pcm, or 8% on an incrementally-growing account.
Thankyou very much for reading and for any help you can offer!
0
Comments
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you make about £28pa more before tax using the RS - assuming you dont loose any interest in transfers between the accounts0
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