Where will I make more interest?

mademe

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

MikeJXE

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Calculating 1 and 2, if you pay in for exactly 12 months you will earn half whats stated 

at 3 you will earn 3.93% of the total amount over the same period 

Mikeeee_2

MikeJXE said:

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Calculating 1 and 2, if you pay in for exactly 12 months you will earn half whats stated 

at 3 you will earn 3.93% of the total amount over the same period 

I'll throw in a curve ball. Virgin money are currently offering a regular saver at circa 10% if you open a current account (quick enough) with them too.

Digital_Payback

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

The account with £400 a month at 5.25% will make you £136.50 per year. 

The account with £200 a month at 8% will make you £104.00 per year. 

The other account with an interest rate of 3.93% will return £3.93 per £100 saved, or £39.30 per £1000 saved over 12 months. 

Mikeeee_2

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Most of these savings accounts are probably fixed at the advertised rates for a year only. They usually revert to a lower rate. The 8% one is the same I have probably (Nationwide?). Once the one year period ends, they pay you the interest due then it's likely to revert to a rate much lower. So I'd start to look for another account to move it to once that happens.

Middle_of_the_Road

You will make more interest continuing paying into your regular savers.

Here is a calculator which will give you an idea how regular savers work.

https://www.moneysavingexpert.com/savings/regular-savings-calculator/

Dazed_and_C0nfused

MikeJXE said:

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Calculating 1 and 2, if you pay in for exactly 12 months you will earn half whats stated 

at 3 you will earn 3.93% of the total amount over the same period 

I understand what you mean but for the op's benefit they will pay exactly what they claim to i.e., the 8% one pays 8%, not 4%.  But as you can only put £200 per month in you are only getting 8% on £2,400 for the final month.

But 8% on £200 in month 1, on £400 in month 2, £600 in month 3 and so on is still 8% so that should be the highest priority place to fund from the 3 accounts you have.

mademe

Thank you everyone, so I am doing it the right way round! I am already looking at new savings accounts and I did try to apply for a 10% savings account with Virgin but was refused, not sure why as my credit rating is apparently excellent, I assume it's because they've had lots of applications but may be wrong.

poolboy

Virgin 10% is market leading, it took me 10 mins to open as a new customer.  Use the regular saver list in % order, feed them from an easy access, ulster is 5.2 but reducing soon.  Review rates or keep an eye on here, loads of experts.  Good luck, it's become a hobby for me.

xylophone

I did try to apply for a 10% savings account with Virgin but was refused, 

It is open to current account holders only.

First open the current account then the saver.

https://forums.moneysavingexpert.com/discussion/6545230/virgin-money-10-38-regular-monthly-saver

mademe

Thanks - I tried to open a current account but they refused me. They said they couldn't tell me why, but I checked my credit rating which is apparently the most positive it can be? I lived abroad for a about 4 years, moved back in early 2022 so perhaps they weren't keen on that. Is it worth chasing them about it? I have been keeping an eye out on MSE for new savings accounts.