The Top Easy Access Savings Discussion Area

stanmoor

Hi guys,

My last savings account has now expired so on the lookout for a new one. I've already used this year's ISA allowance, and also am using the First Direct 8% regular savings account. What would be the best choice for current saver? I don't want a fixed term account as likely to be looking at buying a property in the next 18 months. I see on the website the Nationwide MySave is recommended as it pays just over 3% gross. Is this still the best option?

10_66

stanmoor wrote: »

...Is this still the best option?

Not if you want to make more than 1 penalty free withdrawal in a year. Santander offer 3.10% esaver issue 4 (but their CS reputation's poor), ING offer 3.10% for new customers (from memory I think that means you can't have had an account with them less that 6 months' ago) but ING's protected by the Passport Scheme rather than the FSCS. Check out Moneyfacts HERE best buy tables.

The other options are opening bank accounts that offer 6% (HSBC) for balances of up to £2,500 or 5% (Santander) also for balances of up to £2,500 (you can have two 5% Santander current accounts). It depends on how much work you want to do to earn the good interest rates though, as both of these accounts have stipulations like having to pay either £800 a month or £1,000 a month (I transfer funds from elsewhere each month and back out again) and having to switch over from another current account (switching a couple of standing orders or dd's - I keep an old current account open and set up "dummy" standing orders to "switch"). It's a faff, but it does enable a better than normal interest rate for 12 months (yes, I know, I'm a sad case!).



............

luv_my_brass

I have a lump sum to transfer to a new, higher yeald account and have just been looking at Vanquis who are offering 3.95% for a fixed 2years. Have never heard of Vanquis and wondered if anyone on here have had any dealings with them?

MrGumby

MySave offers an excellent headline APR of 3.12% but what they don't highlight is that you can't have interest credited to MySave; it has to be sent each month to your linked current account, and that takes at least three working days.

E.g., for my account in December, interest was sent from MySave to Flex on 31/12 but still hasn't appeared in Flex, so I'm losing interest on the interest.

What I used to do is sign in to MySave on the day interest was due, find out how much they had sent to Flex, then sign in to Flex and send the amount of interest back to MySave. If there wasn't enough money in Flex, I had to transfer it in from somewhere else or postpone the transfer to MySave. And then I had to account for all that activity in Quicken (my personal accounting system).

That was far too time-consuming and tedious, for the amount of money involved, so in practice the interest just becomes part of my income and, every few months, when the balance of Flex allows, I send a lump of money to MySave. I save myself a lot of time but lose interest on the interest.

In effect, you will not earn the advertised 3.12%, if you treat MySave as a growth account. It's a good account if you want the interest as monthly income, but how many of us are in that position? You'd need a lot of savings to earn a significant amount of income - £10K @ 3.12% less basic rate tax would only give you a little over £20/month.

I'm a long-standing Nationwide Flex account customer but will transfer out of MySave just as soon as I decide on the right alternative. One thing's for sure, though, my money won't be going to Santander - never again will I go near them, after several really bad experiences in recent years.

rb10

MrGumby wrote: »

In effect, you will not earn the advertised 3.12%

No, if you do not compound the interest you will earn the gross rate of 3.08%. Not a substantial difference between the two rates.

sigma16v

Believe ING Direct is paying 3.10% (including bonus) on new accounts with instant access/withdrawals, etc..

adindas

This is one of the best buy for flexible aacount and offer 4% interest with maxium of four times withdrawals on each account year.
http://www.monbs.com/flexible-saver/

The discussion is also available in
"Regular Savings Accounts_ The Best Currently Available List!" here

http://forums.moneysavingexpert.com/showthread.php?t=608697&page=81&highlight=

As this could also work as regular saving account if people want..

Steve_xx

adindas wrote: »

This is one of the best buy for flexible aacount and offer 4% interest with maxium of four times withdrawals on each account year.
http://www.monbs.com/flexible-saver/

The discussion is also available in
"Regular Savings Accounts_ The Best Currently Available List!" here

http://forums.moneysavingexpert.com/showthread.php?t=608697&page=81&highlight=

As this could also work as regular saving account if people want..

2% is payable as a bonus after the account has been opened for 12 months, as I read it. Yet interest is paid on 31 March each year, ie the 2%. So it needs a bit of thinking about to ensure that you iknow what interest/bonus is going to be credited and when.

adindas

I think, for this type of flexi accounts, e.g. flexible saving AC with high interest rate, introductory bonus is not something uncommon. Vast majority of them will have introductory bonus anyway as they will not be able to effort to pay such high interest for Long period.

Steve_xx wrote: »

2% is payable as a bonus after the account has been opened for 12 months, as I read it. Yet interest is paid on 31 March each year, ie the 2%. So it needs a bit of thinking about to ensure that you iknow what interest/bonus is going to be credited and when.

Steve_xx

adindas wrote: »

I think, for this type of flexi accounts, e.g. flexible saving AC with high interest rate, introductory bonus is not something uncommon. Vast majority of them will have introductory bonus anyway as they will not be able to effort to pay such high interest for Long period.

I think I'm not being clear here. If you open an account today you will get the 2% interest paid into the account on 31 March this year. But, you wont get the 2% bonus until 12 months from today. Did you realise that?