Drip Feeding Into A High Savers Account?

doire_2

I have read another post which recommends "drip feeding"

In other words, A) ,save money in one decent paying interest account each month and.....

Then, , from that account, each month feed the maximum allowed into another higher savers account (£250)

How is this benefical? Surely its best to keep all the money in the "decent paying" account? That way you get more interest as you have a bigger sum saved in it?

Does anyone with A&L do this? Or any other bank?

CLAPTON

if the interest rate is higher in account B than account A you may make a small amount of extra interest althoguh you would have to account for the transfer time when you make no interest at all... just do the maths to see whether it will benefit you.

Dan29

Drip feeding is used with "Regular Savings" accounts which pay good rates of interest but only allow you to deposit a certain amount each month. Personally I think very few of them are worth bothering with at the moment, as rates on other savings accounts are comparable with most anyway.

See this article and this thread for more info and the best rates.