Which savings

Paddy99

Hi guys,

I'm after a bit of advise if I may please. I'm currently in a fortunate position where I've got between £800-£1000/month to save after completing some loans. I've got most of my accounts with TSB including an ISA which I've got a chunk of money in but not renewed it for a couple of years.

Initially I thought of just lumping it in there and maybe pay off a lump of my mortgage at the end of the year, but I see TSB have also brought out their flexible regular saver and wondering if that would give me a better interest rate for the maximum of the £250/month. What's the general thoughts on these accounts?

Many thanks

Speedster2

If you’re going to stick with an ISA then you can do much better as far as earning interest goes by switching away from your TSB one. Looks like it’s paying 0.3% after 12 months. Best buys are earning 1.5%. See here: https://savingschampion.co.uk/best-buys/personal/variable-rate-isa/
The Coventry one is flexible and I’ve personally been very pleased with their customer support.

Is the TSB Monthly Saver the “flexible regular Saver” you’re referring to? 2% at best so pretty low as Regular Savers go. See here: https://savingschampion.co.uk/best-buys/personal/regular-savings/#table

Paddy99

Yep it is the TSB 2% one. I like the idea because it's flexible and we are currently 2 months pregnant so situation might change and I like the idea of changing the amount.

Not sure if they are worth it though or whether I just stash everything in my ISA or something else. Did hear once that the way the interst is worked out means they aren't that great. Also if the theory of overpaying mortgage at the end of the year is worthwhile.

Zero_Sum

Paddy99 wrote: »

Yep it is the TSB 2% one. I like the idea because it's flexible and we are currently 2 months pregnant so situation might change and I like the idea of changing the amount.

Not sure if they are worth it though or whether I just stash everything in my ISA or something else. Did hear once that the way the interst is worked out means they aren't that great. Also if the theory of overpaying mortgage at the end of the year is worthwhile.

For 2% its probably not worth it. I think most are flexible in that you dont have to pay in the same amount each month.
Its a shame Nationwide got rid of theirs as you could also make withdrawals (most dont allow this) & paid 5%

The way the interest is worked is exactly the same as other savings accounts in that you earn interest on whats actually in the account. Some get confused due to that if you put away £250 a month at 5% you dont get 5% of £3000, but just over half that. As your average balance over the year would be just over £1500

eskbanker

Paddy99 wrote: »

we are currently 2 months pregnant

It's often remarked on here that, despite some impressions to the contrary, there's no such thing as a joint credit card but I think I can say without fear of contradiction that there's definitely no such thing as a joint pregnancy!

Paddy99

here's definitely no such thing as a joint pregnancy

Oh I've heard that plenty :rotfl:

Speedster2

My Savings Champion email subscription just brought up a new Savings Account table-topper @ 1.5%:

https://www.beehivemoney.co.uk/savings-and-investments/beehive-online-saver/

pinnks

Has anyone taken advantage of this offering from the Nottingham? I did, or more accurately am in the process of, but note today that the account no longer features on their website.

The only account coming up is 0.65% easy access. I await with interest, (no pun intended) what rate of interest will be applicable to the account I am opening when I get the welcome pack and account details. I fear I may be taking my custom elsewhere...

katsu

OP, look at the regular saver thread in this forum. Open up several regular savers and your money will be better than just in a 1.5% account.

I put money into a 1.5% account and then transfer it out into my regular savers.

pinnks

I have now gained access to my account and it is indeed at 1.5%. Looks as though this product may have been available for only a short time...:beer: