New to savings and inheritance (!) - help me out?

longlostpenpal

I've recently received £2000 as an inheritance and am trying to work out what to do with it in order to maximise the money I can add through interest or bonuses. Being new to saving and confused easily by interest rates it's a bit tricky!

I've narrowed it down to two choices: First Direct or Nationwide. Can someone advise me what would be more beneficial over a twelve month period?

1) Opening a First Direct current account, receiving a £125 welcome bonus. Transferring £300 of the inheritance/month (plus extra money after 6 months when the inheritance money runs out) into their Regular Saver account with an interest rate of 5% paid after 12 months.

= I'm assuming that's £125 bonus + £97 interest = £222 gained on original £2000 inheritance.

2) Opening a Nationwide Flex Direct current account and Flex regular online saver. Drip feeding the inheritance by £75 into the saver from the current account.

= According to the MSE drip feeding savings calculator if I feed in £75/month that's £100 interest gained. I suppose if I maintained more money in the current account and also fed in more savings money from my wages then I would get more interest, but I don't know how to work this out.

So my final thought is that First Direct would be more beneficial? Am I missing something in my sums? Or an even better deal elsewhere?

Thanks for any help.

MisterMotivated

Without the First Direct bonus, I'd go with Nationwide as the current account pays 5% on balances up to £2,500 for the first year, so no need for drip feeding monthly savers. However, you could open both; First Direct for the bonus, keeping a minimal amount in there, and Nationwide Flex Direct for interest on the £2,000. If you have extra funds each month you could open one of the regular savers with either bank.

YorkshireBoy

Both accounts pay a switching incentive...if switching of course. I say this because you speak of simply opening an account.

The answer to your quandry is very simple...open/switch into Nationwide FlexDirect and re-visit the situation in 12 months time.