Natwest digital regular saver - what to do after saving £1000

silvercar

OceanSound said:

Band7 said:

Alternatives: Barclays Rainy Day Saver and/or a number of other Regular Savers

Does anyone know the profit by using Barclays Rainy Day saver to save £5000 over 1 year (I need to have instant access - so that's how come it cannot be a fixed deposit account) as opposed to using natwest or rbs and  depositing (drip feeding) £150 a month and reaching £5000.  I will be using Cynergy online easy access account which pays 2.75% interest on the balance of £6500 as the source of the drip feed. 

Doing this without round-ups. Although round-ups would speed things up. 

Of course, to qualify for Barclays Rainy Day saver, we need to pay in £800 and have two direct debits in place on Barclays current account. Just trying to figure out if the Barclays Rainy Day saver is worth it considering the profit vs.  £800 pay-in every month + 2 direct debits. 

edit: on barclays website there's an estimate:
£5,250.57 

so £250.57. Now just need to calculate the yield from Cynergy + Natwest/RBS and compare.

According to the MSE regular savings calculator:

Drip-feeding the regular saver

After drip-feeding the cash for 12 months, you'd have earned...

£200 in interest
£48 from the regular saver + £152 from the normal savings account

Leaving it in normal savings

If you'd kept the cash in normal savings without drip-feeding it, you'd have earned...
£177 in interest.

The calculator can be found here: https://www.moneysavingexpert.com/savings/regular-savings-calculator/

silvercar

I think your Barclays calculation doesn’t allow for the money remaining in Cynergy, so you should have interest of £250 from Barclays plus £41.25 from the £1500 remaining in cynergy.

so you have 3 options:
a) cynergy alone £172
b) Barclays + cynergy £291.25
c) NatWest + cynergy £200

AmityNeon

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

Bridlington1

AmityNeon said:

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

Why not throw the Club Lloyds Monthly Saver at 5.25% (£400/mth) into the mix whilst you're at it. 

AmityNeon

Bridlington1 said:

AmityNeon said:

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

Why not throw the Club Lloyds Monthly Saver at 5.25% (£400/mth) into the mix whilst you're at it. 

I did not because it's a standard 12-month account and wasn't discussed.

silvercar

AmityNeon said:

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

OK.

a) cynergy alone £172
b) Barclays + cynergy £291.25
c) NatWest + cynergy £200
d) Barclays + NatWest + cynergy £301

(I've not included the 0.5% interest on the interest on the Barclays money - it is less than £1 total for the year)

OceanSound

silvercar said:

AmityNeon said:

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

OK.

a) cynergy alone £172
b) Barclays + cynergy £291.25
c) NatWest + cynergy £200
d) Barclays + NatWest + cynergy £301

(I've not included the 0.5% interest on the interest on the Barclays money - it is less than £1 total for the year)

sorry. can you elaborate. So, I start with  £5000 in Barclays and £1500 in cynergy. Then drip-feed £150 from Barclays to Natwest? Keep the £1500 in cynergy?

MrFrugalFever

Bridlington1 said:

You can do about 100 debit card payments per day on a Natwest/RBS debit card. If you have double round ups and all transactions are amounts ending in £0.01, you can round up a maximum of £198 per day into each regular saver. Assuming you had £1k in it now, put another £150 in today and another £150 on 1st January, you could fill both Natwest and RBS in 19 days, so by 15th January. That's assuming you had a lot of time (and patience) on your hands and had nothing better to do.

I'm fairly on top of little hacks like this but even this is one step too far for me

I shall suffer the drip-feed and hope that the limit is increased at some point...i've had it since it started and maxed the £1,000 then skimmed the interest off to a high interest EA account, then as soon as the £5,000 allowance was announced it was back on my agenda for transferring the £150 each month....

silvercar

OceanSound said:

silvercar said:

AmityNeon said:

All three would be even better.

£5,000 in Barclays.
£150 a month to NatWest.
The rest in Cynergy.

Interest from Barclays should be transferred away each month to NatWest.

OK.

a) cynergy alone £172
b) Barclays + cynergy £291.25
c) NatWest + cynergy £200
d) Barclays + NatWest + cynergy £301

(I've not included the 0.5% interest on the interest on the Barclays money - it is less than £1 total for the year)

sorry. can you elaborate. So, I start with  £5000 in Barclays and £1500 in cynergy. Then drip-feed £150 from Barclays to Natwest? Keep the £1500 in cynergy?

a) leave 6,500 in cynergy
b) move 5,000 to Barclays and leave remaining 1,500 in cynergy
c) drip feed 150 a month from cynergy to NatWest
d) put 5,000 in Barclays AND drip feed 150 a month from cynergy to NatWest. ( with this option cynergy will be empty after 10 payments have gone across)

you would leave the 5,000 in Barclays as it is earning 5% there, you move 150 a month from cynergy to NatWest so that it earns 5% in NatWest rather than 2.75% in cynergy.

pecunianonolet

MrFrugalFever said:

Bridlington1 said:

You can do about 100 debit card payments per day on a Natwest/RBS debit card. If you have double round ups and all transactions are amounts ending in £0.01, you can round up a maximum of £198 per day into each regular saver. Assuming you had £1k in it now, put another £150 in today and another £150 on 1st January, you could fill both Natwest and RBS in 19 days, so by 15th January. That's assuming you had a lot of time (and patience) on your hands and had nothing better to do.

I'm fairly on top of little hacks like this but even this is one step too far for me

I shall suffer the drip-feed and hope that the limit is increased at some point...i've had it since it started and maxed the £1,000 then skimmed the interest off to a high interest EA account, then as soon as the £5,000 allowance was announced it was back on my agenda for transferring the £150 each month....

It works and is rather easy to do with Paypal. Worked for me the first few days and then they blocked my card. Complained on their chat, people there seemed rather stupid that at the third time me repeating the same stuff over and over again I logged a formal complaint with RBS. They already paid me £150 for another complaint as they not opened the credit card within their 3-5 working days SLA they state in their email so let's see where this complaint will go.