Savings Advice for someone with no plan...



  • BooJewels
    BooJewels Posts: 2,836 Forumite
    First Anniversary Photogenic First Post Name Dropper
    edited 12 November 2023 at 5:58PM
     I have around £95,000.00 in a free access current account with Halifax with awful interest, say 0.1% or similar.

    Can you be more careful with such statements on a MSE savings forum ! 

    I imagine at least a couple of the regular contributors felt a bit faint after reading that  :)

    Nobody panic - it's not quite that bad! 

    The basic everyday saver pays 1.45% on small balances, but it rises to 1.8% over £50k.  So the OP is already getting £1,710 per year in interest.  Obviously it can be seriously bettered, but it's rather better than 0.1%.

    ETA:  As you were, I just realised it actually says 'current account' - so as you were, back to panicking!
    If nothing else OP - please remove it from your current account, even into one of the everyday savers I just mentioned, if only short term whilst you think - if someone steals your debit card, they're really going to have fun!
  • auser99
    auser99 Posts: 226 Forumite
    First Anniversary First Post Name Dropper
    edited 12 November 2023 at 9:26PM
    Degas said:
    Good Afternoon,

    I honestly have read most of the guides on here and am still lost what is best for me...I may in fact be a financial moron. I am sorry of this has been answered a million times previously.

    I am looking for some advice please based on the following details...

    1. I am a 48 year old guy.
    2. I have a 25 year £147,000.00 interest only mortgage, with around 10 years left to run.
    3. I earn around £62,500.00 a year.
    4. I have around £95,000.00 in a free access current account with Halifax with awful interest, say 0.1% or similar.
    5. My mortgage is around £660 a month with Santander.
    6. I have no ISAs or other saving accounts

    I am looking to probably move in the next 18 months and would like to maximise my savings, but as I don't know exactly when I will be moving, I need to ensure that any accounts have free access to the money in the account with no more than 30 days notice (without penalties) and I need to have at least one account with normal everyday access at high a rate of interest as possible. I would also like any interest to be paid monthly so I don't have to wait to the end of the year if I do decide to move...if that makes sense or how it works.

    Can you assist with some advice please?

    Thanks in advance
    The immediate priority is to get the maximum in Halifax down to 85k as you're exposed for that extra 10k at the moment.

    Are you sure you definitely don't want to put  any money in a 1 year fixed ISA? Rates are up to about 5.7% on those.
    Even if it was 5k/10k (max is 20k per year), that'd be tax free interest.

    Alternatively, there's premium bonds, up to 50k max, no guaranteed prizes, but with 50k you'll most likely have a decent stream every month, with the potential of a big prize - and again all tax free.

    But if you're hell bent on simple easy access rates, the top of the market is 5% or so.
    Halifax themselves offer >4%, albeit it a rate that goes down after 3 or 4 withdrawals (so not 100% easy access), but if you particularly favour Halifax, staying where you are for a much better rate is a good option.
    Monthly interest is a choice too.
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