Over 100k in savings - am I using the right accounts?

MrRobots

My wife and I have about 110k in savings. When we can we overpay on the mortgage, but that's capped each year at 10% of remaining balance. We have no other debt to pay down. We save about 1.5k a month.

We have three Santander 123 accounts (one each and one joint), with 20k in each. With cashback on mortgage and utilities minus account fees, by my calculations it's about 1.5% interest per year.

We have 30k sitting in two old ISAs. These pay just north of 1%.

Embarrassingly about 20k is currently just sitting in a bog standard account earning nothing. I know, I know... I had intended to invest this in the stock market, but judging by current performance I think I was right to wait.

We also own some gold.

Aside from the 20k of uninvested money, is the rest reasonable?

I've seen that Tesco is offering 3% on up to 3k. Might be worth trying to open three accounts?

MrRobots

Actually, no point opening three Tesco accounts. They require deposit of 750 and a gazillion direct debits.

p00hsticks

What are you saving the money for (when are you likely to need it) ?
How's your pension provision ?

MrRobots

I have a good pension. Wife has a pension but not a great one.

Money was ultimately for buying better house.

MrRobots

Probably don't want to tie money up for more than a year, or at least have easy access if needed.

YorkshireBoy

Who do you have current accounts with at the moment?
Ever had a Nationwide FlexDirect account?
Re the ISA rate of "just north of 1%", what better ISA rates have you identified with your own research? I have an ISA with Nationwide at 1.40%. If you're not with them, or haven't been with them for long, you could get 1.30%. Is that north of your "north of 1%" figure?
Have you read the "best savings accounts" article on the main site?
Are you prepared to put a bit of work in yourself?...ie find some DDs to make use of high interest current accounts?
If you can find some DDs, then Tesco will give you, between you, 4 accounts, not 3.
If you've so much with Santander you must already have a pair of regular savers paying 5% AER on £400 a month between you?
Are you really making £15 a month in DD cashback with Santander? Must be a very large Santander mortgage if you are.

But if you want an easy life look at Tesco for 1.25% AER.

rathernot

If you don't want to spend half your life juggling accounts for £50/year I'd just go with an NS&I bond.

You can withdraw whenever you want with an interest penalty.

stoozie1

rathernot wrote: »

If you don't want to spend half your life juggling accounts for £50/year I'd just go with an NS&I bond.

It takes me about 40 mins a month to earn £165/month cycling monies around, but YMMV

want_to_save

are you each contributing to regular saver with Santander?

AirlieBird

In addition to Santander regular saver, there at least 4 other regular savers you could have that don't require a current account, and all pay 2.25% or higher: Leeds Building Society, Halifax, Virgin Money regular e-Saver and Virgin Money regular saver.

Take a look through the opening posts of https://forums.moneysavingexpert.com/discussion/5776240 for details of these and other regular savers that may suit you.

bundly

I am interested in this thread as I am about to have £13,000 lump sum then £220 pm to invest/save.

Lots of good ideas here, thanks.

That Nationwide e-saver is a bit of a con. They claim 5% but that is not the case as you cannot invest it all as a lump sum. There is a maximum per month, and I think it works out at between 3 and 3.5%.

Bundly

PS I am interested to note that when MrRobots asks this question he is treated seriously and with respect. I asked an almost identical question and was treated with rudeness and mockery.