£7000 to transfer - interest question

Hello all

I know that this sounds incredibly stupid but here goes...I've got £7000 in an account with nationwide which is earning and embarrassing lack of interest so I'm planning on transferring it. The choices are either the Nationwide Flexclusive or the M&S linked regular savings.

When I transfer it would I get interest on the opening balance of £7000 or would I need to dripfeed the money in? Nationwide would let me dripfeed it in by up to £500 a month and M&S only £250 a month.

thanks!
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Replies

  • TemraelTemrael Forumite
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    I don't know the Nationwide one but most places calculate interest daily based on the balance that is in there each day, then pay the interest whenever (the M&S Reg Saver is annually for example).

    Your limiting factor will be how much they let you pay in each month though as you say.
    Temrael

    Don't use a long word when a diminutive one will suffice.
  • Thank you Temrael!

    That was what I thought but to be honest I've spent so long looking at different things whilst trying to look after a 3 year old at the same time that I think my brain has just completely gone!
  • YorkshireBoyYorkshireBoy Forumite
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    cmgallag wrote: »
    The choices are either the Nationwide Flexclusive or the M&S linked regular savings.
    Is that because you already have all the accounts that would allow you to get 3/4/5% AER on the entire £7K?
  • Yes, I've got a flexaccount with Nationwide already so that gives you the 5% savings. I'd need to open an M&S account to get the 6% regular savings with them but that's not a problem. My current nationwide is giving 0.7%...
  • YorkshireBoyYorkshireBoy Forumite
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    So you already have Club Lloyds, TSB Plus, 3 x BoS Vantage, 2 x Tesco?
  • ViolaLassViolaLass Forumite
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    Given how log it will take you to dripfeed in the £7k, why not get an account where you can put the money in in one go?
  • AnotherJoeAnotherJoe Forumite
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    Agree with ViolaLass, you'd be better off opening a couple of higher interest paying accounts like TSB or Club Lloyds. Or open one S123 account and drip feed the accounts you mention from that.
  • YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum amount

    ViolaLass, I know that would be better, that's why I was wondering whether I could get interest straight away if I put them into these two accounts, the interest rates are the attractive bit
  • ratechaserratechaser Forumite
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    cmgallag wrote: »
    YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum

    Er.... 2k into TSB, 5k into Club Lloyds. Equals 7k if I'm not mistaken :p

    Then you just cross fund once a month. Also need a couple of DDs on the Lloyds account, but even if you don't have 2 that you can move easily, plenty of threads on here about how you can create them without much difficulty...
  • YorkshireBoyYorkshireBoy Forumite
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    cmgallag wrote: »
    YorkshireBoy, I looked at those but the amount I need to pay in would exceed their maximum amount
    You're prepared to open a M&S current account just to get access to a £250 a month regular saver, yet aren't prepared to open a BoS Vantage account to get an instant 3% AER on most of your £7K?

    The other £2K would go into TSB Plus (for £5% AER), which would then allow £250 a month going forward at 5% AER.

    You'd then set up a couple of cross-firing £1K standing orders between these 2 accounts.

    That's the easy way, but not the way I'd do it as maximising return is my objective...even if that meant finding a couple of DDs.
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