Changing my accounts for better interest

bp5678

Hi I know both Tesco and TSB are reducing the interest rates on their accounts so i was wondering if there's a better place to put my money?

I'm looking to buy in the next 12 month so I can't have my money somewhere tied up for more than a year.

Currently I have:
Goldman Sachs Marcus account - 1.5% interest. I have £8k in here.
Tesco - 3% AER up to £3000. Changing to 1% on 12th June. I have £3k in here.
TSB account - 5% interest up to £1500. Although dropping to 3% soon.
Nationwide FlexDirect account - 1% interest AER / gross p.a as it's been a year with them. I have £500 with them.

Lifetime ISA - £5k. Will move £4k of HTB ISA into LISA before April tax year.
Help To Buy ISA - £4.5K. Adding £200 each time.

I also joined First Direct to get their switch bonus and will leave them next month (£1 in my account with them) - hopefully to get their leaving money as I've genuinely had issues with them. I therefore can't get their regular saver.

Do I look at stocks & shares, ETFs, regular savers, somewhere else with high interest etc? Which accounts in particular would mathematically maximise my interest? I've seen there's a new savings account... Beehive Money - 1.5% AER variable... however i don't see what this offers that the Marcus account doesn't as they're the same interest.

colsten

You can make some money in the short term, more than from any interest-paying account, from switching your Tesco, TSB and FlexDirect for a switching bonus. The easiest would be to transfer all of them to a Santander account but you need to be quick as their offer is about to run out. See the referral board for referral codes. There would be a single Santander search on your credit file but I wouldn't worry about just one search in the run-up to your house purchase. Santander also have a 3% Regular Saver which you might want to use later.

There's also the Fineco referral offer which you can make £150 from. Fineco don't do a full credit search, so that wouldn't interfere with your house purchase in any way. Offers on the referral board again.

Unless you can put your money away for 7-10 years, you should not contemplate any stocks and shares etc. Regular Savers will normally tie up your money for 12 months

N1ckS

You could try HSBC as they also have a 5% regular saver, however you may run into similar problems you've had with First Direct I guess.

bp5678

N1ckS wrote: »

You could try HSBC as they also have a 5% regular saver, however you may run into similar problems you've had with First Direct I guess.

For some reason I wasn't accepted when applying for an account and they couldn't tell me why. I have almost perfect credit score and meet all of their requirements/criteria including minimum pay in.

N1ckS

I had a rejection for the HSBC Advance account last year, similar to you in meeting the requirements and having a good credit score. I applied again this year providing the same details of income etc and was accepted. Obviously there will be lots of variable factors involved but I suspect it helped that I no longer hold a Marks and Spencer account.

colsten

bp5678 wrote: »

I've seen there's a new savings account... Beehive Money - 1.5% AER variable... however i don't see what this offers that the Marcus account doesn't as they're the same interest.

Marcus has got a 0.15% bonus that expires after 12 months and brings the AER to 1.35% variable. Beehive is a flat 1.5% variable.

Beehive needs a minimum of £2.5K. Marcus has no minimum.

N1ckS

This MSE Wealthify offer might be an option for £400 to put in a GIA for 6 months:
https://www.moneysavingexpert.com/savings/robo-funds/

bp5678

N1ckS wrote: »

You could try HSBC as they also have a 5% regular saver, however you may run into similar problems you've had with First Direct I guess.

colsten wrote: »

Marcus has got a 0.15% bonus that expires after 12 months and brings the AER to 1.35% variable. Beehive is a flat 1.5% variable.

Beehive needs a minimum of £2.5K. Marcus has no minimum.

Thanks for clarifying. I've not had my Marcus long (maybe 2 months) so I'll keep it at that for the next 10 months then revaluate.

colsten

N1ckS wrote: »

This MSE Wealthify offer might be an option for £400 to put in a GIA for 6 months:
https://www.moneysavingexpert.com/savings/robo-funds/

What guarantee do you have that you get your full £400 back at the end of the 6 months?

colsten

bp5678 wrote: »

Thanks for clarifying. I've not had my Marcus long (maybe 2 months) so I'll keep it at that for the next 10 months then revaluate.

You could open the Beehive now, and shift at least £2.5K from your Marcus. That way you are relatively certain that you still have a 1.5% account once your Marcus rate drops.

Beehive tend to replace their better offers after a while - for example, when they first launched, they had a 1.55% AER (var) account, with a £1K min balance. Existing customers still kept that rate when they brought out their 1.5% / min £2.5K account.

N1ckS

colsten wrote: »

What guarantee do you have that you get your full £400 back at the end of the 6 months?

There is, obviously, no guarantee that you would get your full £400 back at the end of the 6 months. If the markets drop 10%+ you're going to be cashing out less than you put in.

I don't think it's an unreasonable suggestion given the original post and the OP's mention of stocks and shares and ETF's.