Drip feed while still saving?

gr_cebrown

Hello, 

I have a lump sum of savings accumulated over the last year, which I have put into an easy access saver and now am about to start drip-feeding into a regular saver with higher interest. 

However, I also want to keep saving every month with money from my monthly income, on top of this lump sum amount. 

With the savings that are monthly and not in this lump sum, is my best option to put them into the easy access saver (and therefore added to the lump sum) or the regular saver (and therefore increasing the amount that is drip fed across each month)?

Thank you!  

eskbanker

Depends on exactly what you mean by 'best' but, at the risk of stating the obvious, you'll earn the most interest if you always put money into the account(s) paying the highest rate!  Some regular savers have restrictions though - they all cap monthly contributions, and some don't permit withdrawals or pay lower rates if withdrawing, so if access may be needed then that would be a consideration.  Much will also depend on the amounts involved, and how many regular savers you're able and willing to open....

carry_on_saving2

Max out the regular saver because it pays more interest. Any spare money that you can't fit into the regular saver keep in the easy access account.

gr_cebrown

Thanks for your speedy advice! This was helpful - I will put it all into the regular saver