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The Top Easy Access Savings Discussion Area

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  • RG2015
    RG2015 Posts: 6,055 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 29 January 2023 at 11:39PM
    I'm trying to figure out, what are my best options, if I have a lump sum which I want to put into one or more instant access accounts, so that I can gradually draw it down monthly, yet earn the max possible in interest during the year. 

    I imagine those who fund multiple regular savers may have calculations they use to guide them in how to combine the best paying accounts. Hopefully some of those savers are on this thread too  :)

    A lot of the Top Easy Access (Ranked) actually only allow 2 or 3 withdrawals. I do have the Coventry Online 6 @ 3.25% (NLA) allowing 6 withdrawals per year, which is better than most of the current rates listed, so was thinking of using that. They have a similar account available Coventry Online 7 @ 2.85%, so presumably could use a combination of those 2 accounts for 12 withdrawals a year, putting 50% in one and 50% in the other and alternate which I withdraw from each month.
    Or will I actually earn more interest if I just stick 100% in the 3.25% account and only withdraw every other month, an amount equivalent to what I need for both months? Not sure what the calculation would be, to work out which is the better method? Or whether there are better options available to achieve what I want? 

    Would anyone be able to provide some assistance on how to calculate this please? 
    Appreciate any thoughts, if there are better options.

    I believe you would be best putting the full amount in the 3.25% account and drawing out 1/12 each month for 6 months. This maximises the amount earning 3.25%.

    You would then have half left which you would put in the account with the best rate at the time. You would then withdraw 1/6 each month.

    Say you had £60,000

    Month 1 £60,000 x 3.25% / 12 = £162.50
    Month 2 £55,000 x 3.25% / 12 = £148.95

    etc

    PS 3.25% is AER so if you calculated monthly interest the rate would be lower.

    I would need to look at the account to see the effect of this.

    Okay, the monthly rate is 3.20% so the calculation would alter accordingly.

    I am not sure how Coventry would calculate and pay the interest if you chose the 3.25% annual interest payment and closed the account after 6 months for your 6th and final withdrawal.

    I would probably choose monthly interest. Who knows there may be an account with more than 3.25% in a month or two.

  • RG2015 said:
    I'm trying to figure out, what are my best options, if I have a lump sum which I want to put into one or more instant access accounts, so that I can gradually draw it down monthly, yet earn the max possible in interest during the year. 

    I imagine those who fund multiple regular savers may have calculations they use to guide them in how to combine the best paying accounts. Hopefully some of those savers are on this thread too  :)

    A lot of the Top Easy Access (Ranked) actually only allow 2 or 3 withdrawals. I do have the Coventry Online 6 @ 3.25% (NLA) allowing 6 withdrawals per year, which is better than most of the current rates listed, so was thinking of using that. They have a similar account available Coventry Online 7 @ 2.85%, so presumably could use a combination of those 2 accounts for 12 withdrawals a year, putting 50% in one and 50% in the other and alternate which I withdraw from each month.
    Or will I actually earn more interest if I just stick 100% in the 3.25% account and only withdraw every other month, an amount equivalent to what I need for both months? Not sure what the calculation would be, to work out which is the better method? Or whether there are better options available to achieve what I want? 

    Would anyone be able to provide some assistance on how to calculate this please? 
    Appreciate any thoughts, if there are better options.

    I believe you would be best putting the full amount in the 3.25% account and drawing out 1/12 each month for 6 months. This maximises the amount earning 3.25%.

    You would then have half left which you would put in the account with the best rate at the time. You would then withdraw 1/6 each month.

    Say you had £60,000

    Month 1 £60,000 x 3.25% / 12 = £162.50
    Month 2 £55,000 x 3.25% / 12 = £148.95

    etc

    PS 3.25% is AER so if you calculated monthly interest the rate would be lower.

    I would need to look at the account to see the effect of this.

    Okay, the monthly rate is 3.20% so the calculation would alter accordingly.

    I am not sure how Coventry would calculate and pay the interest if you chose the 3.25% annual interest payment and closed the account after 6 months for your 6th and final withdrawal.

    I would probably choose monthly interest. Who knows there may be an account with more than 3.25% in a month or two.

    Good point, many thanks. Was probably trying to think too far ahead in planning for the whole year, given the ever changing rates in recent months. You're right I'd be much better using the Coventry that I have as it's a decent rate for now (I chose monthly interest when I opened it) and then reviewing as BOE rates changes. Something better may come up for the latter part of the year and I could use one of the withdrawals to move what's left to a higher rate once available.
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    edited 30 January 2023 at 12:32AM
    I'm trying to figure out, what are my best options,.....
    There are a number of options other than instant access accounts. E.g. 6 or 9 months fixed term accounts, for money that you need in 6 or 9 months time.

    Or Notice accounts. Not listed on Moneyfacts, but popular on MSE is the ZOPA ladder which takes a little effort to set up but could give you what you want, without the Coventry restrictions.

    There might also be some better than 3.25% easy access accounts available in the next 3-4 weeks.
  • chris_the_bee
    chris_the_bee Posts: 405 Forumite
    100 Posts Second Anniversary Name Dropper
    edited 30 January 2023 at 2:40PM
    Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
  • mebu60
    mebu60 Posts: 1,635 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper
    Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
    That's timely! Was about to start transferring funds out as they are my lowest paying account. Will wait to see :-) 

    Thank you. 
  • mebu60 said:
    Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
    That's timely! Was about to start transferring funds out as they are my lowest paying account. Will wait to see :-) 

    Thank you. 

    I have transferred out but left the account open in the hope something might happen as I like Gatehouse Bank a lot. In my experience they have excellent customer service.
  • Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".

     I anticipate Al Rayan topping their new rate by 0.01% :)
    Retired 1st July 2021.
    This is not investment advice.
    Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."
  • PlatinumChaos
    PlatinumChaos Posts: 99 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    edited 30 January 2023 at 5:31PM
    mebu60 said:
    Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
    That's timely! Was about to start transferring funds out as they are my lowest paying account. Will wait to see :-) 

    Thank you. 
    Ha, yep, me too. Was about to start removing money until I read that message in my app, so I'll sit tight for a while and see what happens.
  • Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
    Do we know what the new rate will be or is it a secret ?
  • Gatehouse Bank
    Quote
    "We are working on an increase to your Easy Access Rate and anticipate this to take effect on 31 January 2023".
    Do we know what the new rate will be or is it a secret ?
    Still a secret
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