Help with some calcs - Sunday evening headblock

Indispensable_Hobbes

I have an ING account and a firstdirect esavings account.

ING - 4.75%
FirstDirect - 5% but interest isnt paid in the month a withdrawl is taken.

I rarely withdraw funds from my savings but sometimes its inevitable or i will transfer a lump to my ISA.

In the longrun which is going to be better?

masonic

If you have to withdraw even once in the first year (losing one months interest = 0.42%), then the ING account would be better.

YorkshireBoy

masonic wrote:

If you have to withdraw even once in the first year (losing one months interest = 0.42%), then the ING account would be better.

Unless of course you withdraw all of it on the 1st of the month?

masonic

YorkshireBoy wrote:

Unless of course you withdraw all of it on the 1st of the month?

Well yes, I guess you could go with first direct and make sure you do that if you need to make a withdrawal, but "in the longrun" it wouldn't stay with first direct.

I suppose it comes down to how likely it would be that you would need to withdraw, and whether you would be prepared to stick it all somewhere else when you do.

YorkshireBoy

masonic wrote:

Well yes, I guess you could go with first direct and make sure you do that if you need to make a withdrawal, but "in the longrun" it wouldn't stay with first direct.

I suppose it comes down to how likely it would be that you would need to withdraw, and whether you would be prepared to stick it all somewhere else when you do.

Agreed, but I was thinking it's a great place to save for next year's ISA deposit. Draw it out on the 1st April and start again on the first of May for the following year.

masonic

YorkshireBoy wrote:

Agreed, but I was thinking it's a great place to save £250/month ready for the following year's ISA deposit. Draw it out on the 1st April and start again on the first of May for the following year.

That's a pretty good idea. Especially if your money doesn't come in steadily enough to keep to payments to a regular saver.

Indispensable_Hobbes

maybe il just leave it going in there for a while, least its linked to my current acc so is available instantly (isnt it?)

murphydavid

Don't get stuck on ingdirect, read Martins savings tips and best rate advice. If you want to save for an annual isa transfer then try the derbyshires regular saver and get 5.4%. You can save any amount from 10 up to 1000 each month. Pay in any number of times a month (not exceeding the 1000 limit) then close it and get the full interest at any time. I even think they allow one withdrawl a month as well.