Its worth it to me!.

robotrobo

Like a lot of people chasing interest from their capital , i often wondered is it really worth it with the present interest rates being so low,
So today the first time ever i had a reckon up of the interest that we recieve every month .
Im lucky to have 4 santander accounts between my wife and myself , which is a good help.
Excluding my regular savers and building society accounts that we have not taken in to account, we are getting at least £180 a month interest!.
So i think we will continue to chase the pennies that i was in doubt of before i did my first ever audit check.
Last month we won the premium bonds £600.
This month £100 , so its cheered me up a little bit.
Some of our regular savers are nearly matured, so now i have the incentive to carry on and renew.

Zero_Sum

These Santander accounts you have, are they the full 123 ones where you (probably think that) get 1.5% ?
If so have you knocked off the monthy fee from your interest as you can get better elsewhere. You can also get better on the regular savers at other banks.

colsten

This doesn't sound very MSE, I'm afraid.

LobsterMemory

Don't understand why you'd exclude regular savers and building society accounts in a post like this seeing that's it's about chasing interest

And if you did include it. how about tax? Must be getting close...

MDMD

LobsterMemory wrote: »

Don't understand why you'd exclude regular savers and building society accounts in a post like this seeing that's it's about chasing interest

And if you did include it. how about tax? Must be getting close...

If they are getting £180 a month from the Santander accounts that’s a total of over £2,000.

Whichever way that interest needs to be split for tax purposes at least one of them is over the £1,000 nil rate band for BR taxpayers (unless they aren’t taxpayers)

YorkshireBoy

MDMD wrote: »

If they are getting £180 a month from the Santander accounts ...

Not possible...

£80000 X 1.49% / 12 = £99/mth

Ballard

It took me a couple of years to realise it but interest from cash is generally far outperformed by a stocks and shares isa. There’s always going to be a danger of capital loss but a balanced portfolio should mitigate this to a large extent. I can’t stress enough that I am no expert but saw a 10% rise in mine in 2019. 2018 was not such a good year for it and only saw a low single figure percentage rise.

Depending on age, putting money into your pension is also worth considering. I’m gradually reducing my cash balance, partly by sacrificing 17.5% of my salary (which is matched by my employer). I will also put my bonus (if any) straight into my pension (which my employer will add further 5%).

My advice, then, is to look at your cash amounts and work out whether you can put some away for 5/10 years or until retirement (if not already retired). If you are able to invest medium/long term then investigate your options.

It should go without saying that what I’ve done works for me but mightn’t work for you. I could end 2020 with a 40% loss on my investments but I’m comfortable that the risk is outweighed by the potential returns.

born_again

YorkshireBoy wrote: »

Not possible...

£80000 X 1.49% / 12 = £99/mth

Don't forget any "Interest" or "Cashback" on DD's from these 4 accounts @ santander. But OP did not say it was from just these 4 accounts.
Just that did not include Regular savings & Building Society accounts.

YorkshireBoy

born_again wrote: »

Don't forget any "Interest" or "Cashback" on DD's from these 4 accounts @ santander. But OP did not say it was from just these 4 accounts.
Just that did not include Regular savings & Building Society accounts.

If you disregard regular savers and building society accounts (most of which don't pay interest monthly anyway), what else is left apart from a smattering of 1.2% paying current accounts and TSB at 3% (and remotely possible 5% with Nationwide)?

How does one earn interest on DDs? And don't forget you'd get the same cashback value on just one Santander account. All they're doing here is sharing it out across 4 accounts.

In truth, the OP is earning the equivalent of 1.19% interest on £80K at Santander...if all accounts are full. And that's only £79.33, so there's another £100 coming from somewhere each month that the OP has termed "interest". So where's that from if it's not from regular savers or building society accounts?

£60K of that cash (ie 3 accounts) should have been emptied into Marcus for 1.5% last year...if maximising interest was the aim. Arguably the other 123 should have been downgraded to Lite for another monthly contribution of £4.

born_again

We will have to wait and see what the OP says on that point. But I agree does not compute.

I know you can't earn interest on DD's hence why I worded it "Interest" or "Cashback" in case OP was counting it as Interest..
Clearly they have 8 DD's spread over the 4 accounts to meet the criteria.
I notice you mention the 123 Lite. But that does not pay any interest.

YorkshireBoy

born_again wrote: »

I notice you mention the 123 Lite. But that does not pay any interest.

I'm well aware of the Lite features, being as I have one myself. Do you not see why I mentioned it, when read in context with the rest of my post?