Raisin as a feed account?

Harry1234567890

I want to manage a pension drip feed into my current account. I thought I’d open a raisin instant access and put personal savings into it and drop 20% income tax limit into raisin and then extract the desired amount monthly help with budgeting and optimising 5% interest but I’ve read that Raisin are not great at automation and a little slow. I don’t mind waiting 3 days but ideally I’d like to have the equivalent of an STO from the Raisin provider. Let’s assume an STO is not possible. Is this a good approach and can anyone offer advice good or bad please before I go ahead ?

Harry1234567890

Also is there a tax statement for interest?

friolento

There is no automation in getting money out of Raisin. Just delays, of several days if you are unlucky.

If you want to automate it, look at the Chase savings account. You can set up SOs from it. Or DDs.

Harry1234567890

I see Chase interest for instant access is 4.1% and raisin is 5%. Also you have to open a current account with them. But it’s an interesting comparison (sorry for the pun) and defo worth consideration for the convenience. 

I guess my question about raisin is, will I have to remember to instruct them to transfer to my current account every month?  It seems likely which is a real pain. 

Then I need to compare getting nearly 1% more (less tax) on a balance which would average of 20k plus so an extra £200 per year or more.  Raisin is new to me so a little uncomfortable. Chase sounds easy. 

friolento

As I said, ther eis nothing automatic about getting money out of Raisin, and the only savings account with SO capability I know of is Chase.

It is your decision what's more important to you - maximum savings interest or automatic deposits into a current account. If you want the latter, you need to shift your money about manually. That's something that can be done easily with online/a[[ banking once a month (or however often you need to do it).

In addition, there are few savings accounts which accept BACS deposits (pensions are almost certainly BACS deposits). Again, one exception is the Chase savings account.

Perhaps you want a current account which pays interest? Kroo and Starling could be candidates though I would personally not touch Kroo again becuase of their very odd AML checks. Also, their rates are not as good as rates in savings accounts.

Whichever method you choose, Raisin is really of no help or added value at all with what you want to do.