How to earn the max interest from the different bank accounts there??

YorkshireBoy

falcieri wrote: »

I have maxed out the Santander 123 (1.5% on £20000) and keep my highest paying DD with them for the cash back every month.

...<snip>...

I've added up that I should get approx £630 pa in interest

Changing the 123 to 'Lite' and moving your cash to Marcus (or Tesco et al) would see you add another £50ish to that figure...and that's nearly 8% more.

But I'm guessing you like the easy life, being as you left opening the 5% accounts until last?

Zero_Sum

falcieri wrote: »

I am lucky enough to be able to max out a few interest current accounts to get what I can but I don't have the luxury of being able to lock my money away long term either.


I have maxed out the Santander 123 (1.5% on £20000) and keep my highest paying DD with them for the cash back every month.



I have also in the last few months taken out the Nationwide Flex Plus (5% on £2500) and the Tesco Current account (3% on £3000). Tesco is the only other account I have that requires DDs. I don't have many to offer across the board and I also get the extra Clubcard points for vouchers for food.



I've also now just taken out the TSB account (5% on £1500).



I also have a Halifax current account that earns nothing but I am waiting for another interest current account to come along before I ditch it as already I have money not earning interest. I switch my money around in the accounts each month to ensure I keep the balances up so I don't lose interest.



I've added up that I should get approx £630 pa in interest if they all tick along. Of course they won't, but I see no problem with ditching one account for another. Unfortunately I have to keep all my money to hand because I can have a financial crisis at any time so locking money away for a year or more isn't a safe option for me. Besides which savings accounts have rubbish interest anyway.



It's worth looking at all these accounts. They are small amounts but every little helps, and it really does.

Drop your santander account down to lite then shift your £20k to marcus. You'll be £4 a month better off. Full fat 123 account after the addifional £4 fee in effect drops your rate down to 1.26% . And thats only if you have max £20k in, less in the rate drops further.

colsten

falcieri wrote: »

...... I am waiting for another interest current account to come along before I ditch it as already I have money not earning interest.

Have you got two Tesco accounts?

I echo the suggestion that you should consider Marcus for a full 1.5% rather than Santander for a reduced 1.5%.

falcieri

YorkshireBoy wrote: »

Changing the 123 to 'Lite' and moving your cash to Marcus (or Tesco et al) would see you add another £50ish to that figure...and that's nearly 8% more.

But I'm guessing you like the easy life, being as you left opening the 5% accounts until last?

I only just opened the 5% accounts because I only very recently had the balance to do it and opened them as soon as I had the money available. You only earn interest on a balance of up to £3000 with Tesco so I don't know how putting more money in there would help.

falcieri

Zero_Sum wrote: »

Drop your santander account down to lite then shift your £20k to marcus. You'll be £4 a month better off. Full fat 123 account after the addifional £4 fee in effect drops your rate down to 1.26% . And thats only if you have max £20k in, less in the rate drops further.

Thank you. I'll take a look.

YorkshireBoy

falcieri wrote: »

You only earn interest on a balance of up to £3000 with Tesco so I don't know how putting more money in there would help.

The Tesco product referred to was their Internet Saver paying 1.45% AER on much more than £20K. For the sake of 0.05% less interest you may find the other features of this account (that Marcus doesn't have) better suited to both keeping Santander Lite topped up ready for payment of the cashback generating DDs and funding your other current accounts.

Zero_Sum

YorkshireBoy wrote: »

The Tesco product referred to was their Internet Saver paying 1.45% AER on much more than £20K. For the sake of 0.05% less interest you may find the other features of this account (that Marcus doesn't have) better suited to both keeping Santander Lite topped up ready for payment of the cashback generating DDs and funding your other current accounts.

Its probably also worth noting that the post office as an account paying 1.45% which also has DD's for current account benefits.

YorkshireBoy

Zero_Sum wrote: »

Its probably also worth noting that the post office as an account paying 1.45% which also has DD's for current account benefits.

It does, yes, but I wouldn't keep significant sums (of the level falcieri has for example) in there, having read some of the horror stories on here.

Our PO accounts are only used for Co-op Rewards and to meet the requirements of other interest earning current accounts following Tesco's decision to withdraw their DD facility.

It would suit falcieri though, by easily allowing a second Tesco current account to be opened at 3% AER on another £3K.

falcieri

YorkshireBoy wrote: »

The Tesco product referred to was their Internet Saver paying 1.45% AER on much more than £20K. For the sake of 0.05% less interest you may find the other features of this account (that Marcus doesn't have) better suited to both keeping Santander Lite topped up ready for payment of the cashback generating DDs and funding your other current accounts.

I'm tempted to open both the Tesco internet saver and the Marcus and drop my 123 to Lite. It'll mean shifting money around regularly each month to keep everything to its max but it could work and maximise interest potential.

colsten

falcieri wrote: »

I'm tempted to open both the Tesco internet saver and the Marcus and drop my 123 to Lite. It'll mean shifting money around regularly each month to keep everything to its max but it could work and maximise interest potential.

The max in both, Tesco Internet Saver and Marcus is way above the £85K FSCS limit.