Best Regular Savings Account

liitleblackcat

We have been paying in £1000 a month to the Monmouthshire BS Saver Plus regular savings account from spare income (lucky us) so we can pay off our mortgage early. The account is in my wife's name (she has no income of her own so we don't pay tax on the interest). It is coming to the end of the first 12 months when we can withdraw the money without losing the bonus. Curently it is earning 6.15% (including a bonus after 12 months of 3%).

Our mortgage is an offset and is fixed at 4.84% until February 2011 so it's worth saving elsewhere as long as the savings are tax free or savings interest rates fall below the mortgate rate.

Two questions:

1: What should we do with the £12k + interest - leave it where it is or move it to our Kaupthing Edge account (which currently has £10k in it - again in my wife's name and therefore tax free) - or anywhere else - neither of us has used our 2008-09 mini cash ISA allowances yet.

2: If we can go on saving £1000 a month, where should we put it? Is it worth continung to save in a regular savings account?

nicko33

It's only going to be worth having a Regular Saver if it is going to beat the KE 6.5%
So you could consider
First Direct 8% 300/month
HSBC 8% 250/month
West Brom Magic 8 7.6% 1000/month
and others in the 7.x% area

liitleblackcat

Thanks Nicko33. The West Brom Magic 8 sounds just right (even if it is 7.6%, not 8%) as I want to go on saving £1000 a month - and I work in Birmingham so access to a branch is easy. I might start one now just in case it's not available when the Monmouthshire one ends. And move the £12k+ from Monmouthshire to Kaupthing Edge when it matures. Job done and the mortgage that much closer to being paid off.

Cheers

knights

liitleblackcat wrote: »

Thanks Nicko33. The West Brom Magic 8 sounds just right (even if it is 7.6%, not 8%) as I want to go on saving £1000 a month - and I work in Birmingham so access to a branch is easy.
Cheers

Please be aware that the Magic 8 account is a tracker and changes exactly as the base rate changes. i.e. if the rate reduces by .25%, (maybe this week), then the Magic 8 account will reduce to 7.35 etc., etc.

I understood from another thread that the HSBC one was not available anymore?

First Direct is fixed so a good one.

regards