What saving account is ideal for my savings? (£7,968)

dingling68

LostSoulUK said:

Since I posted I've opened an account with Trading, deposited 1k + £30 as I'd like it to grow each month. But then someone told me that 5% is above inflation which now worries me, I'm just relieved to have got the ball rolling as I kept putting it off. TSB offers a savings pot as well which I assume is their regular savings account, the convenience & service of TSB makes it tempting as my main bank but at 2.5% I'm unsure if it’s worthwhile. Not sure the difference between that and easy saver either it seems like a no brainer to sign up unless there's better options or it conflicts with the Trading account somehow .

The TSB saving pot is not the regular saver, it is a separate pot for your savings. 

The regular saver earns 6% fixed interest on deposits of £25 - £250 a month. 

wmb194

LostSoulUK said:

Since I posted I've opened an account with Trading, deposited 1k + £30 as I'd like it to grow each month. But then someone told me that 5% is above inflation which now worries me, I'm just relieved to have got the ball rolling as I kept putting it off. 

TSB offers a savings pot as well which I assume is their regular savings account, the convenience & service of TSB makes it tempting as my main bank but at 2.5% I'm unsure if its worthwhile. Not sure the difference between that and easy saver either it seems like a no brainer to sign up unless there's better options or it conflicts with the Trading account somehow .

Stop making assumptions: see my response to you above on 14/04. The savings pot is not the regular saver, or monthly saver as TSB terms them.

"No, TSB has a one year 6% £250pm regular savings account. Instant access with no penalties.

https://www.tsb.co.uk/savings/monthly-saver.html "

Angelica123

LostSoulUK said:

Since I posted I've opened an account with Trading, deposited 1k + £30 as I'd like it to grow each month. But then someone told me that 5% is above inflation which now worries me, I'm just relieved to have got the ball rolling as I kept putting it off. TSB offers a savings pot as well which I assume is their regular savings account, the convenience & service of TSB makes it tempting as my main bank but at 2.5% I'm unsure if its worthwhile. Not sure the difference between that and easy saver either it seems like a no brainer to sign up unless there's better options or it conflicts with the Trading account somehow .

Your saving interest rate being above inflation is a good thing! It means your cash is not losing value with time.

As others have said, you are not looking at the right product. TSB have a regular saver (called monthly saver) with interest rate of 6%. 

In the nicest way possible, it sounds like you could benefit from educating yourself a bit more saving products and what interest rates means. For example I don't understand why you have only put £1k into Trading 212 (why not put it all in for now and then withdraw the £250 to put into your TSB monthly saver if you decide to open one).  

LostSoulUK

Angelica123 said:

LostSoulUK said:

Since I posted I've opened an account with Trading, deposited 1k + £30 as I'd like it to grow each month. But then someone told me that 5% is above inflation which now worries me, I'm just relieved to have got the ball rolling as I kept putting it off. TSB offers a savings pot as well which I assume is their regular savings account, the convenience & service of TSB makes it tempting as my main bank but at 2.5% I'm unsure if its worthwhile. Not sure the difference between that and easy saver either it seems like a no brainer to sign up unless there's better options or it conflicts with the Trading account somehow .

Your saving interest rate being above inflation is a good thing! It means your cash is not losing value with time.

As others have said, you are not looking at the right product. TSB have a regular saver (called monthly saver) with interest rate of 6%. 

In the nicest way possible, it sounds like you could benefit from educating yourself a bit more saving products and what interest rates means. For example I don't understand why you have only put £1k into Trading 212 (why not put it all in for now and then withdraw the £250 to put into your TSB monthly saver if you decide to open one).  

This is why I'm here to understand about all this in more depth. I'm just starting out so this is all new to me, its not the easiest thing to understand as there's so much to it, most people I know know nothin about any of this, when I try to explain the basics it just goes right over their heads.

I guess I just didn't feel comfortable transferring my entire balance from TSB who I trust into a new account so I just deposited 1,030 for now. So far its claiming 14p interest a day which adds up I guess, currently at 69p. I'm just relieved to have finally set something up tbh just to get the ball rolling, there's always be ways to do it better this an that but for now its just a relief to have something growing rather than sitting there collecting dust for years due to a lack of awareness about this. 

I was thinking to then setup a savings account with TSB considering I'm already with them, 6% seems alright. I couldn't help but assume their 'savings pot' was their savings account as its literally front an center promoted each time you check ur balance. So much of this terminology is misleading, the average joe would believe that to be a savings account if the word savings is in the title, as if all these type of accounts and rates wasn't complicated enough for the majority out there. 

So is my best bet then to transfer the lot into Trading 212, let it sit there for 12 months (duration of contract) or less and then withdraw the interest accrued or for now just let it sit for a month or so, to withdraw an easy 250 interest, is that what ur sayin?. As it stands if I let this just sit in T212 I would generate around 180 a year. This is essentially a a placeholder as I alluded to just to get a feel of it with the plan to initially add £30 each month to ease my way in. 

I was thinkin to split some into the TSB savings, if its 6% then I should have just unloaded it all into their savings account with the assurance that its all in the trusted bank that I've always been with. I know that its ridiculous to have £6.5k just sitting there collecting there in the main account, its always been that way regardless due to a lack of awareness of any of this stuff. I'm gonna have a chat with TSB directly about this. I'm surprised this hasn't all overwhelmed me tbh with my anxiety, that's why it was just a relief to get something going. 

Eco_Miser

Most banks have a selection of accounts with 'savings' or 'saver' in the title, and rubbish interest rates, and they are savings accounts - avoid these. They may also have one or two with good rates, but often these limit how much you can put in, £250 - £500 each month is common, with the account maturing after about a year and going back to rubbish rates. These will be known as 'Monthly Saver' or 'Regular Saver' and are usually worthwhile for the year (and the open another one and start again).

There are also some savings accounts with good, fixed rates, but you can't add more money after the first few days, and you can't take any money out during the fixed term.

R_P_W

LostSoulUK said:

Angelica123 said:

LostSoulUK said:

Since I posted I've opened an account with Trading, deposited 1k + £30 as I'd like it to grow each month. But then someone told me that 5% is above inflation which now worries me, I'm just relieved to have got the ball rolling as I kept putting it off. TSB offers a savings pot as well which I assume is their regular savings account, the convenience & service of TSB makes it tempting as my main bank but at 2.5% I'm unsure if its worthwhile. Not sure the difference between that and easy saver either it seems like a no brainer to sign up unless there's better options or it conflicts with the Trading account somehow .

Your saving interest rate being above inflation is a good thing! It means your cash is not losing value with time.

As others have said, you are not looking at the right product. TSB have a regular saver (called monthly saver) with interest rate of 6%. 

In the nicest way possible, it sounds like you could benefit from educating yourself a bit more saving products and what interest rates means. For example I don't understand why you have only put £1k into Trading 212 (why not put it all in for now and then withdraw the £250 to put into your TSB monthly saver if you decide to open one).  

This is why I'm here to understand about all this in more depth. I'm just starting out so this is all new to me, its not the easiest thing to understand as there's so much to it, most people I know know nothin about any of this, when I try to explain the basics it just goes right over their heads.

I guess I just didn't feel comfortable transferring my entire balance from TSB who I trust into a new account so I just deposited 1,030 for now. So far its claiming 14p interest a day which adds up I guess, currently at 69p. I'm just relieved to have finally set something up tbh just to get the ball rolling, there's always be ways to do it better this an that but for now its just a relief to have something growing rather than sitting there collecting dust for years due to a lack of awareness about this. 

I was thinking to then setup a savings account with TSB considering I'm already with them, 6% seems alright. I couldn't help but assume their 'savings pot' was their savings account as its literally front an center promoted each time you check ur balance. So much of this terminology is misleading, the average joe would believe that to be a savings account if the word savings is in the title, as if all these type of accounts and rates wasn't complicated enough for the majority out there. 

So is my best bet then to transfer the lot into Trading 212, let it sit there for 12 months (duration of contract) or less and then withdraw the interest accrued or for now just let it sit for a month or so, to withdraw an easy 250 interest, is that what ur sayin?. As it stands if I let this just sit in T212 I would generate around 180 a year. This is essentially a a placeholder as I alluded to just to get a feel of it with the plan to initially add £30 each month to ease my way in. 

I was thinkin to split some into the TSB savings, if its 6% then I should have just unloaded it all into their savings account with the assurance that its all in the trusted bank that I've always been with. I know that it’s ridiculous to have £6.5k just sitting there collecting there in the main account, it’s always been that way regardless due to a lack of awareness of any of this stuff. I'm gonna have a chat with TSB directly about this. I'm surprised this hasn't all overwhelmed me tbh with my anxiety, that's why it was just a relief to get something going. 

It can be quite confusing when you are new to it all. I’d suggest you read the guides about savings accounts and cash isas on the main site here. 

You have regular savers (these will limit how much you can save each month and unlikely you can deposit a lump sum). The interest rates look appealing but as it’s only based on the limited monthly deposits it’s unlikely to be the best option if you have a lump sum.

what I’ll call instant access savers are where you can usually pay in as much as you like. Interest is usually paid monthly or annually. 

You have fixed term savers where you have to commit your money for a period of time, usually 1 to 3 years. Many you can access your money but will have to give up a portion or all of the interest that has accrued.

and then to complicate things more usually the types of accounts above can be within an ISA tax wrapper, meaning that any interest will be protected from tax. From the amounts you mention it’s unlikely your interest will qualify for tax to be paid.

the trading 212 cash isa is pretty competitive. I have my emergency fund in there getting 4.5% a year which is paid monthly. It can seem more complex there as they have shares and trading options, but if you just stick to the cash isa it is very easy. Deposits and withdrawals via bank transfer happen within seconds for me.

himonster

If you're on UC, look at help to save. £50 a month from your savings, and after 4 years you'll have £1200 for free. I think you get half of it after the first 2 years too.

https://www.gov.uk/get-help-savings-low-income

jj20

Hi lostsouluk,  it is very confusing with the different savings accounts but you'll work it out in the end.    Be aware that I think universal credit is means tested, and any savings over £6,000 results in a deduction of £4.35 per wk or month for every £250 of savings over 6,000 so double check this out ok.  

redpete

Bigwheels1111 said:

redpete said:

Bigwheels1111 said:

I would use 2 options.

1,  Trading212 ISA near instant deposits and withdrawals via open banking. Stick all the cash in there.

2, regular savers with your bank or building societies. below click link then, Sort, select Rate

Given the OP's level of understanding those options are too complicated. I have lots of accounts and find Trading 212 not at all easy to manage. Managing multiple RSs seems far to complicated a process.

The OP doesn't really know when they might need to withdraw from their savings so I would look for the highest paying easy access and multi-access savings account with straightforward online access.

Maybe Charter Savings Bank at 4.59%, or Post Office at 4.4% and review after 1 year when the big bonus finishes.

You find trading212 hard ?.
Once you know that to fund the account or withdraw you do it via Trading212 app rather than your bank it’s easy.

Mainly the less than intuitive app interface. For example, displays Total Value including pending interest rather than current balance, transactions shown under "Payments" rather than "Transactions", Daily credit of interest instead of monthly (this has changed), then there's the way they hold your money on your behalf in different institutions' accounts - could be an issue if you have very large amounts of cash savings and need to be concerned with the limit on protection to £85k. All seems to reflect their origins as an investment and trading account provider that has moved into providing cash savings.