How can I make the most out of my money?

Head_Burried

I'm interested in trying to find out the views of others on how I can earn cashback or better interest on our money and how others budget/spend each month.

Here's our scenario and what I currently do.

Both mine and my wife's wage get paid into a Co-op Cashminder account which all bills and direct debits come out.

I transfer a set amount to cover the annual bills (car/house insurance etc.), holiday spending and a bit towards Christmas each month to a Marcus account. The balance is currently £5,000

£333 is transferred to a LISA (BeeHive) currently £18,500 balance

I then transfer £1000 to a Kroo account which we both spend out of and is our play money, clothes, meals out, takeaways etc.

With the remaining I transfer to Premium Bonds which I treat as a rainy day fund but ideally don't withdraw. There is about £5,000 in here.

Fuel and shopping (approx £800) a month is spent between 2 credit cards which don't earn any rewards and are paid off each month via direct debit.

I've looked around and considered an Amex reward card for the shopping etc but Tesco (online) don't accept Amex so wouldn't achieve much cashback unless our £1000 play money is spent via this.

I've also considered the Amazon rewards card but cashback is only 0.25% so would be about £24 a year.

We don't need a packaged bank as my wife is with Lloyds which seems to cover both our needs.

Open to suggestions and ideas.

Sarahspangles

The nominal interest rate on Premium Bonds is lower than the amount you could get if you used regular savings at ‘old fashioned’ banks and building societies. Plus it’s not subject to chance! You can also save rainy day money in single access accounts that pay good rates. 

Mark_d

I think there's questionable value in having unnecessarily complex financial arrangements.  I use a Kroo current account which also holds my 'rainy day savings'.  For the longer term I hold investments with Interactive Investor and a cash pot in Premium Bonds.  For spending my main card is a BA Premium Plus Amex but I also have an Avios Barclaycard for places that don't take Amex.  I also have a Halifax Clarity card for all foreign spending.

Nasqueron

Mark_d said:

I think there's questionable value in having unnecessarily complex financial arrangements.  I use a Kroo current account which also holds my 'rainy day savings'.  For the longer term I hold investments with Interactive Investor and a cash pot in Premium Bonds.  For spending my main card is a BA Premium Plus Amex but I also have an Avios Barclaycard for places that don't take Amex.  I also have a Halifax Clarity card for all foreign spending.

Worth looking at Nationwide - 5% interest for 12 months on the current account up to £1500, I do what you do with Kroo but the upcoming cut down to 3.9% was what pushed me to take action. My less urgent day to day savings are there with the excess in Kroo

username

Head_Burried said:

Fuel and shopping (approx £800) a month is spent between 2 credit cards which don't earn any rewards and are paid off each month via direct debit.

I've looked around and considered an Amex reward card for the shopping etc but Tesco (online) don't accept Amex so wouldn't achieve much cashback unless our £1000 play money is spent via this.

I've also considered the Amazon rewards card but cashback is only 0.25% so would be about £24 a year.

Start here with your credit cards. Switch these two for rewards credit cards of sorts - to ensure you're getting something for your everyday spending.

Whether it's airline miles, cashback,points or vouchers in M&S, there's something which will appeal. Compare and decide on one, and ultimately it's £24 more than you're currently getting - the current arrangement of either paying out of your current account using the debit card, or just using your bank's credit card (which I assume is just a standard one which gives nothing back) gets nothing.

I charge all spending (as is practically possible) through BA Amex and Virgin Atlantic Mastercard (for places that don't accept Amex). It's paid off in full each month so I also have the interest free period.

ZeroSum

If you're not one of these 'has to spend' folk, then consider stoozing. With current interest rates you get better returns than cashback. Also might want to look at the Halifax reward account between you & wife it's an easy £30 a month from cash recycling.

Head_Burried

username said:

Head_Burried said:

Fuel and shopping (approx £800) a month is spent between 2 credit cards which don't earn any rewards and are paid off each month via direct debit.

I've looked around and considered an Amex reward card for the shopping etc but Tesco (online) don't accept Amex so wouldn't achieve much cashback unless our £1000 play money is spent via this.

I've also considered the Amazon rewards card but cashback is only 0.25% so would be about £24 a year.

Start here with your credit cards. Switch these two for rewards credit cards of sorts - to ensure you're getting something for your everyday spending.

Whether it's airline miles, cashback,points or vouchers in M&S, there's something which will appeal. Compare and decide on one, and ultimately it's £24 more than you're currently getting - the current arrangement of either paying out of your current account using the debit card, or just using your bank's credit card (which I assume is just a standard one which gives nothing back) gets nothing.

I charge all spending (as is practically possible) through BA Amex and Virgin Atlantic Mastercard (for places that don't accept Amex). It's paid off in full each month so I also have the interest free period.

That's a really good point. £24 is more than I'm currently getting. 

If I go down this route then I could see me putting more spending through the card.

Thank you

Head_Burried

ZeroSum said:

If you're not one of these 'has to spend' folk, then consider stoozing. With current interest rates you get better returns than cashback. Also might want to look at the Halifax reward account between you & wife it's an easy £30 a month from cash recycling.

Certainly not a 'has to spend' so I'll look at stoozing. Thank you.

How do you make the £30? All I can see is a £5 reward with Halifax

Nasqueron

Head_Burried said:

ZeroSum said:

If you're not one of these 'has to spend' folk, then consider stoozing. With current interest rates you get better returns than cashback. Also might want to look at the Halifax reward account between you & wife it's an easy £30 a month from cash recycling.

Certainly not a 'has to spend' so I'll look at stoozing. Thank you.

How do you make the £30? All I can see is a £5 reward with Halifax

If you are looking at stoozing, start now, with interest rates predicted to go down in November, savings rates can fall again (even allowing for them being factored in).

I took £1500 on a Barclaycard MT at 3.3% fee, 0% to April 2026, on top of my balance transfers at 0% and have it in a 5% current account with Nationwide, while drip feeding regular savers like the FD 7% one, NatWest digital saver 6.17%, Virgin 10% etc.  

SacredStephan

Head_Burried said:

I've looked around and considered an Amex reward card for the shopping etc but Tesco (online) don't accept Amex...

Yes, they do, according to their website.

Ballard

You could move your spending money to Chase and get 1% back up to £15 a month. 

As has ready been noted, Amex is acceptable at Tesco, online and in their shops.