NS&I savings to ...where?

Retireby40

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

unkle

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

Only worthwhile if you've 100's of 1,000's - otherwise I agree, 

t0rt0ise

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

How many times do you have to not move your money before the loss matters? It's a bit like being told to lower your heating thermostat by a degree. If we'd been doing that each year they'd said it, the thermostat would now be on 5 degrees! 

Retireby40

t0rt0ise said:

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

How many times do you have to not move your money before the loss matters? It's a bit like being told to lower your heating thermostat by a degree. If we'd been doing that each year they'd said it, the thermostat would now be on 5 degrees! 

Considering salaries rise that would offset your issue regarding your heating.

Plus my example was buying 1 less beer or coke a month. Not only would you be saving money but also improving your health 😀

For me it doesnt make sense to move accounts and spend hours searching the best rates in order to make an extra £10-20 a year. It literally doesnt impact your life in the slightest and the time and effort you have spent changing you could have literally just done an hour overtime in work and made the same.

Eco_Miser

Retireby40 said:

Eco_Miser said:

Retireby40 said:

People get caught up on opening 10 different accounts and moving money around and trying to make the most of things but for what you gain youd just be better drinking a bottle of beer less a month.

Can you please explain how to drink minus one bottle of beer?

If you dont drink beer then a coke less, or a footy bet less a week. Or a takeaway less.

Don't do any of those things. All a waste of money.

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

In a typical week, that's 20 milliseconds of negative time required, but winter is coming, so maybe.

Retireby40 said:

you could have literally just done an hour overtime in work and made the same.

Difficult for me as I'm retired, but even when I wasn't, overtime wasn't available.

The point of my posts is to point out that these alternative ways of making the money available by chasing the best interest rates are NOT available to everyone.

I'll also mention that I've stopped chasing the rates, just making the best use of the accounts I've already got; but rather than trying to replace any such foregone gains by reducing my standard of lining, I'm just accepting a lower income.

Retireby40

Eco_Miser said:

Retireby40 said:

Eco_Miser said:

Retireby40 said:

People get caught up on opening 10 different accounts and moving money around and trying to make the most of things but for what you gain youd just be better drinking a bottle of beer less a month.

Can you please explain how to drink minus one bottle of beer?

If you dont drink beer then a coke less, or a footy bet less a week. Or a takeaway less.

Don't do any of those things. All a waste of money.

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

In a typical week, that's 20 milliseconds of negative time required, but winter is coming, so maybe.

Retireby40 said:

you could have literally just done an hour overtime in work and made the same.

Difficult for me as I'm retired, but even when I wasn't, overtime wasn't available.

The point of my posts is to point out that these alternative ways of making the money available by chasing the best interest rates are NOT available to everyone.

I'll also mention that I've stopped chasing the rates, just making the best use of the accounts I've already got; but rather than trying to replace any such foregone gains by reducing my standard of lining, I'm just accepting a lower income.

Yeah but we are talking about a reduction that isnt even noticable. 

What I'm saying is I see so many people saying I'm getting x rate where is best to move it when y is almost as low and they are moving such a little amount that it makes 0 sense and effort. Yes some people value £10 or £20 quid extra a year. Me unfortunately or fortunately not.

If as stated you've got hundreds of thousands it makes a difference. £1000 quid. Nope.

greatcrested

Retireby40 said:

There really isnt much point moving money around for the difference of 20 quid over the course of a year. 

People get caught up on opening 10 different accounts and moving money around and trying to make the most of things but for what you gain youd just be better drinking a bottle of beer less a month.
1.0% moving to get 1.2% or whatever is a waste of time especially if its £5000.

But if you have the max £85K then it makes more difference.

Plus people tend to forget the added benefit of compounding. If you're in an account paying interest annually, and you close it after 6 months to switch, then you receive the interest early which increases the actual APR you receive.

lisyloo

unkle said:

Retireby40 said:

whitesmith said:

...or have your central  heating on for 20 milliseconds less a week ...

Correct. The interest rates these days arent worth the hassle moving around. Best thing can do is reduce spend by about 1% and that will make the difference. See people asking about swapping £1000 in an account paying 0.01% to something 0.03%. For the hassle involved what is the point.

Only worthwhile if you've 100's of 1,000's - otherwise I agree, 

I always "do the maths".

So for example 0.5% on £40K is £200 which I'd consider worthwhile for say 30 mins effort.

Aceace

greatcrested said:

Retireby40 said:

There really isnt much point moving money around for the difference of 20 quid over the course of a year. 

People get caught up on opening 10 different accounts and moving money around and trying to make the most of things but for what you gain youd just be better drinking a bottle of beer less a month.
1.0% moving to get 1.2% or whatever is a waste of time especially if its £5000.

But if you have the max £85K then it makes more difference.

Plus people tend to forget the added benefit of compounding. If you're in an account paying interest annually, and you close it after 6 months to switch, then you receive the interest early which increases the actual APR you receive.

I suspect that most financial institutions would be savvy enough to take this into account. So you would actually be paid the daily rate equivalent for the quoted APR, E.g. for a 1% APR you would actually be paid the 365th root of 1.01 per day for the exact number of days invested. Even if they didn't, and simply paid 0.5% for 6 months, then moving £1,000 from one account paying 1% to another paying 1% after 6 months would net you a gain of 2.5p for the year. If that caused your funds to be uninvested while in transit for a single day you would lose 2.7p. So, I think it's OK to forget the compounding effect in this instance. 

squashed_pea

If you don’t want to shop around and stay with ns&i you can always open a direct saver account with them. This will pay 0.15% from nov 24th,  not a fortune by any means but certainly better than their insulting 0.01 income bond rate soon to come in.

apparently you fill out an online form with them to transfer the money.