Keep switching around as finding better interest rates?

ColdIron

Which is what we have now, somewhere in between. Hurrah

boingy

jaypers said:

Also quite enjoy it. 

I think that is the key. I enjoy it too. My wife is intelligent, educated and numerate but switches off at the merest mention of money. She's always been careful with money and is a natural saver and I recently found that she had a five figure sum languishing in her current account earning no interest.

So I stole it and gambled it away in a single night playing online poker to teach her a lesson. Or, to be more truthful, I persuaded her to put it in an easy access cash ISA. Then we came to a deal where I promised not to nag her about money but that we would review it every January. In transferring the money to the ISA the bank blocked it then rang her up to ask some pointless questions, one of which was "Has anyone told you to make this transfer?" Fortunately she said no....  

auser99

wmb194 said:

auser99 said:

wmb194 said:

auser99 said:

martyp said:

Thanks boingy, much appreciated. I like the rates I'm getting at the moment. The best ones do seem to be the ones with a monthly limit. I was kicking myself with one when I withdrew a fair amount then they hiked up the interest rate unexpectedly so have been filling it up again.
I've hesitated to on long term fixes in case I may need the money for anything.

But generally, fixed bonds will produce higher interest over a year as a whole, which some may miss as they'll just see the apparatent (sic) higher interest rate offered on the ,monthly limit accounts.

No, you'll always earn more with the higher rate.

Maybe we're talking slightly different scenarios.

If you have £100, then clearly 6% will get you more than 5%.

But if you put in £100 a month limit at 6%, you'll get less over a year, than you would putting in £1200 in one go at 5% in a fixed bond.

£1200 at 5% gets you £60 over a year
£100 a month compounding at 6% gets you £40.25 over a year

No, you're talking about a lump sum that's being drip fed into a regular saver, and you're also assuming that it won't earn any interest before it reaches the regular saver. What you do - and particularly if we're only talking about £1,200! - is open multiple regular savers at a rate >5%. If you have the inclination to manage lots of accounts and you want to maximise your interest, go for the best rate.

The last line nails it, the inclination to manage loads of accounts.
I don't think i could bother to make marginal gains on loads of small amounts each month versus the overall year position v fixed accounts, especially when a lot of the top rates are where you have to be with that bank anyway.

Having said that, I'd be making a monumental gain on some old accounts stashed at 1%, but i'm slowly sorting it out

silvermum

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

TiVo_Lad

silvermum said:

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

Good job mum!

RG2015

silvermum said:

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

Very laudable but....

....the question is whether he is earning enough interest to exhaust his personal savings allowance.

If not, Cash ISAs tend to have poorer interest rates than equivalent non ISA savings accounts.

Sometimes a little knowledge can lead to inappropriate decisions.   

sheslookinhot

Just moved a £10000 from Tesco to Sainsbury. (3.45% to 3.76%).  I’ll move another £20,000 over the next two days.

silvermum

RG2015 said:

silvermum said:

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

Very laudable but....

....the question is whether he is earning enough interest to exhaust his personal savings allowance.

If not, Cash ISAs tend to have poorer interest rates than equivalent non ISA savings accounts.

Sometimes a little knowledge can lead to inappropriate decisions.   

Don't worry, he has a lot of knowledge actually, and no inappropriate decisions are being made
As I said, he has a good level of savings, thanks to some inheritance, and yes, he easily exceeds his personal savings allowance. He's also a higher rate tax payer, so even more important to use his ISA allowance.

boingy

silvermum said:

RG2015 said:

silvermum said:

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

Very laudable but....

....the question is whether he is earning enough interest to exhaust his personal savings allowance.

If not, Cash ISAs tend to have poorer interest rates than equivalent non ISA savings accounts.

Sometimes a little knowledge can lead to inappropriate decisions.   

Don't worry, he has a lot of knowledge actually, and no inappropriate decisions are being made

Either that or he is just really good at fooling his mum      (Sorry - couldn't resist!)

silvermum

boingy said:

silvermum said:

RG2015 said:

silvermum said:

I'm gradually trying to instil a healthy 'review and update regularly' approach with my two young adult children, who are fortunate to have good savings thanks to some inheritance. Youngest son is a poor student and grateful for every extra £ he can get (and I am proud to say is showing super savviness in student discount grabbing etc). Older son is now cash rich/ time poor and working full-time, but I did smile to myself when he sent me 'Best Buy' list of ISA rates and asked my advice recently 

Very laudable but....

....the question is whether he is earning enough interest to exhaust his personal savings allowance.

If not, Cash ISAs tend to have poorer interest rates than equivalent non ISA savings accounts.

Sometimes a little knowledge can lead to inappropriate decisions.   

Don't worry, he has a lot of knowledge actually, and no inappropriate decisions are being made

Either that or he is just really good at fooling his mum      (Sorry - couldn't resist!)

Ah well, I can't comment on any inappropriate non-financial decisions!