Best savings for £12000 ish

grudz1980

We have around £12k we are looking to put in a savings account (or current account). We've both had the Nationwide 5% Flex-Direct ones in the last year. What options are there for us now to maximise the interest we can get? Thinking about a Tesco current account where we would put £3k in now and the £750 a month for the next 11 months (which in my reckoning would give us £1080 in interest - is that really correct?!). What other options are available to us? TIA

eskbanker

grudz1980 wrote: »

Thinking about a Tesco current account where we would put £3k in now and the £750 a month for the next 11 months (which in my reckoning would give us £1080 in interest - is that really correct?!).

No - the Tesco current account pays 3% per year (on up to £3K, i.e. about £90) not 3% per month!

You can have multiple accounts with them so four between you would absorb the £12K nicely, as long as you can find (or create) 12 direct debit mandates, and pay in £750 to each of them every month.

Other than that, you're obviously familiar with the principle of using current accounts for savings and where to find info about how to do this, so the relevant articles (such as https://www.moneysavingexpert.com/savings/which-saving-account) should tell you all you need to know, at least up to the point at which you review the actual product Ts & Cs before committing of course!

grudz1980

Doh! I did wonder about the 3% but no matter how many times I read it I couldn't see it for looking!!