Where to invest £7000

BMTH

Unfortunately I'm not eligible for an ISA or LISA and my only current account and savings account are with Natwest (interest is non-existent).

Won't be touching this money.

pramsay13

I would open some of the decent interest-paying current accounts and store some in there.
e.g. Nationwide Flexdirect 5% on up to £2,500
TSB 5% on up to £1,500.
https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

fiestaman87

BMTH,

Just out of interest, why do you not qualify for an ISA?

BMTH

fiestaman87 wrote: »

BMTH,

Just out of interest, why do you not qualify for an ISA?

I bought a house a few years back on a HTB scheme.

ryannnking

Have a look into the different savings accounts.

Nationwide you can earn 5% on £2.5k. Then another 5% in a different type of account, but you can only add £250 per month.
Tesco you can earn 3% on £3k.
Marcus you can earn 1.5% for the first year up to £250k.

You could also look into money market funds, which are usually quite safe, but more risk than a current account. Think these pay around 2-2.5%.

Ryan

fiestaman87

BMTH wrote: »

I bought a house a few years back on a HTB scheme.

But that's a HTB ISA. You still can get a normal ISA although if you have savings of less than about £20,000 (£10,000 if you're a high earner) they're easily beaten by other high interest savings accounts.

xylophone

If you have never had a Nationwide Flexdirect current account, open one and deposit £2500.

Open a TSB Classic account and deposit £1500. Set to paperless.

Open a Tesco current account, making sure that you have 3 DDs on it.

Deposit £3000.

Set up a same day mid month SO to send £1000 from NW to TSB and from TSB back to NW.

Set up a same day mid month SO to send £750 from NW or TSB to Tesco and back again.

Open a monthly saver with NW and deposit the interest gathered from accounts plus anything you can afford up to £250.

badger09

BMTH wrote: »

Unfortunately I'm not eligible for an ISA or LISA and my only current account and savings account are with Natwest (interest is non-existent).

Won't be touching this money.

For how long?

If long term, ie more than 5, and ideally more than 10 years, have you considered S&S ISA?

Have you thought about additional pension contributions? Could you benefit from additional employer contributions?

webjaved

Nationwide Flexdirect 5% on up to £2,500

Is that up to £2,500 per month?

xylophone

Is that up to £2,500 per month?

No, see the web site for full information.

BMTH

xylophone wrote: »

If you have never had a Nationwide Flexdirect current account, open one and deposit £2500.

Open a TSB Classic account and deposit £1500. Set to paperless.

Open a Tesco current account, making sure that you have 3 DDs on it.

Deposit £3000.

Set up a same day mid month SO to send £1000 from NW to TSB and from TSB back to NW.

Set up a same day mid month SO to send £750 from NW or TSB to Tesco and back again.

Open a monthly saver with NW and deposit the interest gathered from accounts plus anything you can afford up to £250.

Regarding the Nationwide account on the website it says

" To benefit from in-credit interest, you'll need to pay in a minimum of £1,000 per calendar month (excluding transfers from any Nationwide account held by you or anyone else).
"

Does this mean I'll have to deposit £1000 each month after the initial £2500 to benefit from the 5% for the 12 months?

Also.. I'm not too brushed up on this so apologies but 5% of £2500 is £125 right? So that's what I'll be getting p/m?