Best method to save £5000 over 1 year (need some access - no Fixed deposit) - drip feed method?

OceanSound

Okay. So, there's a thread for 'The Top Easy Access Savings Discussion Area' and there's a thread for 'Regular Savings Accounts: The Best Currently Available List!'. Can we use both of these to maximise returns?

What are the best products out there now to save £5000 over a year (as the title says it cannot be fixed deposit as I need access to some of the cash over the year - up to £5000 being tied up towards the end of the 12 month period is fine though - as in a regular saver). 

Is it Chip (for the EAsy Access Saver) combined with First Direct Regular Saver?

Any ideas?

francoghezzi

I personally have First Direct 7% and Lloyds 6.25% with money in Zopa saver that currently pays between 3.34 and 3.55 . Combined Fd and Lloyds allow to save £ 8400 in a year (Fd 3600 + Lloyds 4800). Instead of Lloyds you could go for Rbs or Natwest saver (6.17% interest) that allows you to put away 150 a month for a 1800 total in the first year that combined with Fd makes 5100. Fd allows access but you must close the account and the interest rate drops to 1.60%, Lloyds and Rbs allow to use money but you can't replaced it at a later stage.

OceanSound

francoghezzi said:

I personally have First Direct 7% and Lloyds 6.25% with money in Zopa saver that currently pays between 3.34 and 3.55 . Combined Fd and Lloyds allow to save £ 8400 in a year (Fd 3600 + Lloyds 4800). Instead of Lloyds you could go for Rbs or Natwest saver (6.17% interest) that allows you to put away 150 a month for a 1800 total in the first year that combined with Fd makes 5100.

How come Zopa saver and not chip (which has a higher rate)?

francoghezzi

OceanSound said:

francoghezzi said:

I personally have First Direct 7% and Lloyds 6.25% with money in Zopa saver that currently pays between 3.34 and 3.55 . Combined Fd and Lloyds allow to save £ 8400 in a year (Fd 3600 + Lloyds 4800). Instead of Lloyds you could go for Rbs or Natwest saver (6.17% interest) that allows you to put away 150 a month for a 1800 total in the first year that combined with Fd makes 5100.

How come Zopa saver and not chip (which has a higher rate)?

I started with Zopa when it was market leader and I don't change for just few pennies, really a very modest difference, plus I value security and Zopa gives me better vibes than Chip but this is just personal. I have plenty of bonds with Zopa also and never had a single problem

housebuyer143

I have my money in the following.

Zopa -paying 3.38% on 7 day fix.
Skipton - easy access - 3.35% 
Chip - 3.71%
NatWest regular saver -6.17%
Shawbrook fixed - 4.54%

I am not a fan of fixing my money away as I have quite a large chuck in a share save scheme which matures soon so all those apart from shawbrook are instant access. I like to spread my money around different institutions and while Skipton is a little low now the account tracks the base rate so I am expecting an increase in it in the next week or two. When they do, Zopa will need to increase as well or I will have to move my money from there 

housebuyer143

francoghezzi said:

OceanSound said:

francoghezzi said:

I personally have First Direct 7% and Lloyds 6.25% with money in Zopa saver that currently pays between 3.34 and 3.55 . Combined Fd and Lloyds allow to save £ 8400 in a year (Fd 3600 + Lloyds 4800). Instead of Lloyds you could go for Rbs or Natwest saver (6.17% interest) that allows you to put away 150 a month for a 1800 total in the first year that combined with Fd makes 5100.

How come Zopa saver and not chip (which has a higher rate)?

I started with Zopa when it was market leader and I don't change for just few pennies, really a very modest difference, plus I value security and Zopa gives me better vibes than Chip but this is just personal. I have plenty of bonds with Zopa also and never had a single problem

I used Zopa when it was a peer to peer lender. That arm of the business collapsed after COVID due to a rush on withdrawals. It took a while but Zopa returned every single penny all investors invested. They give me good vibes too and that's why I prefer them over others and continue to use them.

Bigwheels1111

I use FD to fund Chip, it is instant and seamless.
The way I see it, do you have a lump sum or X per month to save.
X per month then regular savers are great.
If a lump sum, stick it in Chip and fund the regular saver every month from Chip the day before it due.

OceanSound

Bigwheels1111 said:

I use FD to fund Chip, it is instant and seamless.
The way I see it, do you have a lump sum or X per month to save.
X per month then regular savers are great.
If a lump sum, stick it in Chip and fund the regular saver every month from Chip the day before it due.

The type of account at FD (first direct) that you use to fund Chip please?

As far as I'm aware Chip needs to be funded using a current account using truelayer (preferably, as we have protection) or direct payment (which dosen't have as much protection and can take longer occasionally)

housebuyer143

OceanSound said:

Bigwheels1111 said:

I use FD to fund Chip, it is instant and seamless.
The way I see it, do you have a lump sum or X per month to save.
X per month then regular savers are great.
If a lump sum, stick it in Chip and fund the regular saver every month from Chip the day before it due.

The type of account at FD (first direct) that you use to fund Chip please?

As far as I'm aware Chip needs to be funded using a current account using truelayer (preferably, as we have protection) or direct payment (which dosen't have as much protection and can take longer occasionally)

That's right. I fund chip from my NatWest current using open banking and it's instant.

OceanSound

housebuyer143 said:

OceanSound said:

Bigwheels1111 said:

I use FD to fund Chip, it is instant and seamless.
The way I see it, do you have a lump sum or X per month to save.
X per month then regular savers are great.
If a lump sum, stick it in Chip and fund the regular saver every month from Chip the day before it due.

The type of account at FD (first direct) that you use to fund Chip please?

As far as I'm aware Chip needs to be funded using a current account using truelayer (preferably, as we have protection) or direct payment (which dosen't have as much protection and can take longer occasionally)

That's right. I fund chip from my NatWest current using open banking and it's instant.

Does NatWest current account pay much interest though? 2.25% if you have the adapt current account it seems and that's only for 11-17 year olds. Why not open a Nationwide current account which pays 5% (it has some conditions though. Interest only payable upto £1500) or Kroo account which pays 3.33%

housebuyer143

OceanSound said:

housebuyer143 said:

OceanSound said:

Bigwheels1111 said:

I use FD to fund Chip, it is instant and seamless.
The way I see it, do you have a lump sum or X per month to save.
X per month then regular savers are great.
If a lump sum, stick it in Chip and fund the regular saver every month from Chip the day before it due.

The type of account at FD (first direct) that you use to fund Chip please?

As far as I'm aware Chip needs to be funded using a current account using truelayer (preferably, as we have protection) or direct payment (which dosen't have as much protection and can take longer occasionally)

That's right. I fund chip from my NatWest current using open banking and it's instant.

Does NatWest current account pay much interest though? 2.25% if you have the adapt current account it seems and that's only for 11-17 year olds. Why not open a Nationwide current account which pays 5% (it has some conditions though. Interest only payable upto £1500) or Kroo account which pays 3.33%

I don't keep any money in my current account, £300 at a time so it doesn't need to pay anything. The ones that pay are the ones I have signed up to and use as a savings account. 

I have banked with NatWest for 20 years and it works great. I don't see it worth the hassle of moving to make a few pounds interest