Sorting my Finances

SieIso

amanda1024 said:

SieIso said:

Thanks all for your help. I have done some adjusting this morning and below is now my current setup, what further actions are recommended?

Personally, I would move the £6k out of the current accounts. Even if you go for easy access savings at Natwest/co-op so you can move money back into current accounts instantly, that’s still over £100 interest a year, or £48 a year for each £1k you put in the Chip easy access account.

Like others have said, how long-term are you thinking? What’s your pension provision like? Mortgage? Saving to buy a house?

I am 40, pension is approximately £90k. The main priority is to purchase a new family home, Chip savings and the sale of the existing home (possibly the 90-day notice account) will be used for the deposit. No mortgage at present.

badger09

SieIso said:

amanda1024 said:

SieIso said:

Thanks all for your help. I have done some adjusting this morning and below is now my current setup, what further actions are recommended?

Personally, I would move the £6k out of the current accounts. Even if you go for easy access savings at Natwest/co-op so you can move money back into current accounts instantly, that’s still over £100 interest a year, or £48 a year for each £1k you put in the Chip easy access account.

Like others have said, how long-term are you thinking? What’s your pension provision like? Mortgage? Saving to buy a house?

I am 40, pension is approximately £90k. The main priority is to purchase a new family home, Chip savings and the sale of the existing home (possibly the 90-day notice account) will be used for the deposit. No mortgage at present.

At 40 it’s understandable that your focus is on a bigger/better family home. But £90k (assuming that is the pension ‘pot’ rather than the annual payment) isn’t a great deal. Don’t waste the free money, in terms of possible employer contribution, and tax relief associated with pension contributions. Your 68 ish year old self will thank you for it. 

elkiedee

I agree with amanda1024 above that 6K is a large amount to keep in those current accounts - are you applying for instant access savings with NatWest and the Co-op?

I'm surprised by the 90 day notice account - are you looking for a new home now or are you waiting for a few months anyway? Presumably this is because of the higher interest rate, but what notice do they give you of a cut? 

SieIso

elkiedee said:

I agree with amanda1024 above that 6K is a large amount to keep in those current accounts - are you applying for instant access savings with NatWest and the Co-op?

I'm surprised by the 90 day notice account - are you looking for a new home now or are you waiting for a few months anyway? Presumably this is because of the higher interest rate, but what notice do they give you of a cut? 

We've been looking for a new home for over one year now. I'm not sure on how much notice is given of an interest decrease.