Savings, £5000 in which account

gord115

I have a Santander Edge account which pays 3%(for now) 
I also have a Coventry savings account which pays 4.73% interest and allows 3 withdrawals per year without penalty.(50 days interest lost after that on withdrawal I assume)

I need to make several withdrawals of less than £5000 in the coming year.

After my first 3 withdrawals am I better leaving £5000 in my Santander account and not losing any interest from Coventry or leaving it in the Coventry 'till the last minute and losing 50 days interest.

Thanks in advance.

wmb194

gord115 said:

I have a Santander Edge account which pays 3%(for now) 
I also have a Coventry savings account which pays 4.73% interest and allows 3 withdrawals per year without penalty.(50 days interest lost after that on withdrawal I assume)

I need to make several withdrawals of less than £5000 in the coming year.

After my first 3 withdrawals am I better leaving £5000 in my Santander account and not losing any interest from Coventry or leaving it in the Coventry 'till the last minute and losing 50 days interest.

Thanks in advance.

You don’t have the 6% Edge saver? Instant access, no penalties, interest on up to £4k.

https://www.santander.co.uk/personal/savings-and-investments/savings/santander-edge-saver

PloughmansLunch

As you've already got the associated current account, why not open a 6% Santander Edge Saver and put the maximum £4k in there? No penalties if you do need to withdraw from there either.
https://www.santander.co.uk/personal/savings-and-investments/savings/santander-edge-saver

EDIT: Snap!

MX5huggy

If we restrict ourselves to these 2 accounts I would have all the money in Coventry account till I needed a withdrawal then decide how much I needed for say the next 6 months. And put that in the Santander account. Once I’d spent all that I would consider the next 6 months. 

gord115

MX5huggy said:

If we restrict ourselves to these 2 accounts I would have all the money in Coventry account till I needed a withdrawal then decide how much I needed for say the next 6 months. And put that in the Santander account. Once I’d spent all that I would consider the next 6 months. 

Yeah, but if I needed say £10000 in the next 6 months I would be losing 1.73% interest on it (4.73% - 3%) which would be £86.

35har1old

PloughmansLunch said:

As you've already got the associated current account, why not open a 6% Santander Edge Saver and put the maximum £4k in there? No penalties if you do need to withdraw from there either.
https://www.santander.co.uk/personal/savings-and-investments/savings/santander-edge-saver

EDIT: Snap!

From what the OP said he doesn't have the associated account as he is receiving interest of 3% so he has a Edge Up account which doesn't give you excess to the Edge Saver

35har1old

gord115 said:

I have a Santander Edge account which pays 3%(for now) 
I also have a Coventry savings account which pays 4.73% interest and allows 3 withdrawals per year without penalty.(50 days interest lost after that on withdrawal I assume)

I need to make several withdrawals of less than £5000 in the coming year.

After my first 3 withdrawals am I better leaving £5000 in my Santander account and not losing any interest from Coventry or leaving it in the Coventry 'till the last minute and losing 50 days interest.

Thanks in advance.

As you say it's paying 3% for now perhaps the Coventry would reduce as well .
Move it to a easy excess account
YBS current rate 4.35%

Stargunner

35har1old said:

PloughmansLunch said:

As you've already got the associated current account, why not open a 6% Santander Edge Saver and put the maximum £4k in there? No penalties if you do need to withdraw from there either.
https://www.santander.co.uk/personal/savings-and-investments/savings/santander-edge-saver

EDIT: Snap!

From what the OP said he doesn't have the associated account as he is receiving interest of 3% so he has a Edge Up account which doesn't give you excess to the Edge Saver

If that is the case, the OP could open an edge current account to give them access to the 6% edge savings account and deposit £4k in that. If they didn’t set up any direct debits on the current account they would not be charged a monthly fee. There are also many other EA accounts paying better interest rates than their current edge up savings accounts.

gord115

OP here.
I don't really want to open more accounts.
So which is the best way to go with the accounts I have?

eskbanker

gord115 said:

OP here.
I don't really want to open more accounts.
So which is the best way to go with the accounts I have?

50 days deducted from 4.73% equates to an effective annual rate of about 4.08%, so keeping funds in that account would return more than the 3% you'd earn in the other account.

Stargunner

That depends on how long it will be after making your 3 withdrawals from Coventry until you need to make your next withdrawal/s and also what the value of the withdrawals would be. 

Why moan about being penalised on interest, when you are not prepared to gain more interest by putting your money in alternative savings accounts.