The Top Easy Access Savings Discussion Area

murphydavid

PeteJ wrote: »

Am I being silly here, or is the A+L current account that pays 6% on balances up to £2500 a better saving option than any of the (non-ISA) savings accounts if you can afford the monthly payments and maintain the £2500 balance? It also seems to beat the FD and Halifax accounts as 2.5k at 6% = £150 compared to £100 at FD and 12x5= £60 at Halifax?

If you already have an A&L current account then its worth keeping a bit of cash in there but as a new deal then the math is:
To avoid the monthly payment on the premier current account you have to have a turnover of £500. If you do that then your balance will fluctuate between 2000 and 2500 so you can't maintain 2500.
6% of £2250 less tax is about £100. a year this is the maximum interest you can get on this account in any one year so unless you actually need a new current account is it worth the effort for £100 (less what you would get in a normal savings account).
Oh if you maintain £2500 and pay the (is it £5) a month fee then the interest comes to about £120 and the fee is £60 per year so you get £60 = 3%.

murphydavid

smcg2212 wrote: »

I've just logged on to my Halifax Web saver and it says that my current rate is 5.00% p.a.! Sounds too good to be true.
Should I be transferring all my savings in there or are they known for misquoting exchange rates on their accounts?

I would like a bit of that. Looked up Halifax Web saver. Can find Web Saver Reward at 2.50% ? That's the best I can see. Are you able to direct me to the account you have?

Mr._H_2

murphydavid wrote: »

To avoid the monthly payment on the premier current account you have to have a turnover of £500. If you do that then your balance will fluctuate between 2000 and 2500 so you can't maintain 2500.

There's no stipulation on how long the £500 has to be in the account. So you can keep £2500 in the account, pay in £500 and then transfer the £500 back out immediately. If you've got a savings account that supports faster payments in/out, you can do it all in a couple of days (A&L currently do faster payments out only on amounts up to £250).

smcg2212

Just phoned Halifax. Get 5% because I opened the account in Nov 08. I thought the rate was variable but it's fixed for 12 months. :T I'll be moving all my savings into there! Won't waste all my time completing the application for my new inferior rate savings account.

Redpeter1948

An endowment covering a mortgage has matured six months before the mortgage capital needs repaying. The calculator suggests a good rate of interest will pay cover a small shortfall. Where's the best place to put £35K for six months untouched?

G_M

Redpeter1948 wrote: »

An endowment covering a mortgage has matured six months before the mortgage capital needs repaying. The calculator suggests a good rate of interest will pay cover a small shortfall. Where's the best place to put £35K for six months untouched?

If you can be bothered with the hasstle of multiple applications, try multiple Lloyds Vantage accounts (4%). Alternatively, Investec's High Five (3.13% this week) is always = average of the 5 best-paying accounts in Moneyfacts. £25K minimum & 3 months notice rqd. £50 bonus paid if referred. PM me for any other details.

Steve_xx

Birmingham Midshires simple account pays 3.15%

JimmyTheWig

Redpeter1948 wrote: »

An endowment covering a mortgage has matured six months before the mortgage capital needs repaying. The calculator suggests a good rate of interest will pay cover a small shortfall. Where's the best place to put £35K for six months untouched?

Would you be penalised for paying off the mortgage early?
Depending on your mortgage rate, this may be your best bet...

PeteJ_2

Mr._H wrote: »

There's no stipulation on how long the £500 has to be in the account. So you can keep £2500 in the account, pay in £500 and then transfer the £500 back out immediately. If you've got a savings account that supports faster payments in/out, you can do it all in a couple of days (A&L currently do faster payments out only on amounts up to £250).

Cool - I'm looking for a new current account, so I can transfer £2500, ensure I transfer £500 in each month (and either leave it there or transfer it to my other account) and hey presto, 6% interest on £2500. So this is the best deal out there on anything up to £2500 then (unless I start and leave with FD and get £200?)?

Redpeter1948

JimmyTheWig wrote: »

Would you be penalised for paying off the mortgage early?
Depending on your mortgage rate, this may be your best bet...

Normally I'm sure you'd be absolutely right. The practical thing to do, but a little dull. However with rates gone as silly as they have, I just wondered if a good 3.1% somewhere might beat the monthly mortgage payments right now. It should be a simple comparison.
The fun thing to do would be 35,000 Premium Bonds for six months, but again not practical I guess. Good to have the options - don't often have £35K just lying around like this! (ie never)