Personal Finance - Are they worth adjusting?

Cptralls

Hi All, I have the following setup and I am not sure if there is any point in adjusting it at all. I want to lock everything away for one years to make the most I can with it. With regular savers maturing in the next number of months my inclination is to divert everything into premium bonds but I am open to other suggestions. All recommendations appreciated, thanks in advance. 

Account	Amount	Rate	Notes
Coventry RS	£1,000.00	2.50%	Rate Drop Pending
First Direct	£3,000.00	5.00%
First Direct ISA	£5,500.00	0.55%
Funding Circle	£236.80
HSBC	£30.00
HSBC RS	£2,500.00	5.00%
M&S Current Account	£419.48
M&S Current RS	£2,750.00	5.00%
Nationwide	£2,500.00	1.00%	Rate Drop Pending
Premium Bonds	£200.00
TSB	£1,500.00	3.00%	Rate Drop Pending
TSB Monthly Saver	£250.00	2.00%

dunstonh

That is a lot of accounts for what are basically very small amounts (individually).   I suppose if you have the time, its worth it but you have to be careful that you not spending more than you are getting by chasing every single rate going.

my inclination is to divert everything into premium bonds

Premum bonds are mostly suitable for higher rate taxpayers who have used all their other allowances.   What is it about Premium Bonds that makes you think its the best option for you?

Cptralls

dunstonh said:

That is a lot of accounts for what are basically very small amounts (individually).   I suppose if you have the time, its worth it but you have to be careful that you not spending more than you are getting by chasing every single rate going.

my inclination is to divert everything into premium bonds

Premum bonds are mostly suitable for higher rate taxpayers who have used all their other allowances.   What is it about Premium Bonds that makes you think its the best option for you?

I suppose it's more the possibility of getting a few decent returns. My Mum has had a few of the lowest bracket wins from a around £10k which would have outperformed most saving's accounts but of course it's about luck.

JPin

I opted for premi bonds, there's nothing else of promise on offer. 

colsten

Cptralls said:

My Mum has had a few of the lowest bracket wins from a around £10k 

Wow, she sounds one lucky lady! Several wins from around £10k! Most people don't get more than the occasional £25.

Sailtheworld

Weighted average interest rate is something like 2.7% which isn't to be sniffed at of course these days.
But it could all be earning 1.3% in one place. It's whether that additional 1.4% of interest (and falling) is worth the faff and how you value your time.

JPin

Sailtheworld said:

Weighted average interest rate is something like 2.7% which isn't to be sniffed at of course these days.
But it could all be earning 1.3% in one place. It's whether that additional 1.4% of interest (and falling) is worth the faff and how you value your time.

Where are you getting this figure of 2.7% from? 

RG2015

JPin said:

Sailtheworld said:

Weighted average interest rate is something like 2.7% which isn't to be sniffed at of course these days.
But it could all be earning 1.3% in one place. It's whether that additional 1.4% of interest (and falling) is worth the faff and how you value your time.

Where are you getting this figure of 2.7% from? 

It's the weighted average of the OP's savings accounts. Some at 5% and some at 0.55% could give an average of 2.7%. I am not going to check the arithmetic.

As for the OP, the ISA with £5,500 at 0.55% should really be transferred to an account with a better rate if possible. Having said that it would only yield an extra £40 or so per annum.

schiff

I think I could be saying those very same words 'having said that it would only yield an extra....' quite often in the the year ahead; and 'is it going to be really worth it'

Sailtheworld

JPin said:

Sailtheworld said:

Weighted average interest rate is something like 2.7% which isn't to be sniffed at of course these days.
But it could all be earning 1.3% in one place. It's whether that additional 1.4% of interest (and falling) is worth the faff and how you value your time.

Where are you getting this figure of 2.7% from? 

It's the weighted average interest rate across the OPs accounts.

They could get 1.3% (ish) for no effort by putting all of the £20k or so into a single account. The advantage being that the ongoing admin is minimal and, if interest rates change, it's easier to transfer cash from one place to another. 

The work and faff is yielding a premium of 1.4% and per the OPs post this is in somewhat of a decline. Only they can answer the question as to whether it's worth it.