Somewhere to save a small amount and drip feed for best interest

prezzacc · 17 May 2017 at 5:06PM

Hi All,

Im looking at getting some interest on around £4k. Currently sat sadly getting a miserable 0.2% in an ISA. Id like to be able to get to the money if needed so dont want to lock it away. Chances are i may not need too.

Im a bit stuck at what to do. I was thinking of getting a NW Flexdirect and the linked regular saver and drip feeding into that, getting interest from both? Im happy to move the minimum from my bank to the NW account and back again to fulfil the minimum and any other payments to maximise interest.

Would appreciate your views.

Thanks

phillw · 17 May 2017 at 5:19PM

prezzacc wrote: »

Im a bit stuck at what to do. I was thinking of getting a NW Flexdirect and the linked regular saver and drip feeding into that, getting interest from both? Im happy to move the minimum from my bank to the NW account and back again to fulfil the minimum and any other payments to maximise interest.

Would appreciate your views.

Do it.

Also try to get £100 for you and £100 for a friend that refers you.

http://www.nationwide.co.uk/products/current-accounts/our-current-accounts/recommend-a-friend-tab#xtab:can-i-recommend-someone-who-already-has-a-nationwide-current-account

prezzacc · 17 May 2017 at 5:55PM

Great. Thanks Phil.

I see the linked regular saver pays annualy the interest and i can make penalty free with drawels so how do they calculate the interest? Is it based over a year? Say i paid in 500 a month then in month 9 drew out £3k how would my interest be calculated?

I would switch, but i want it as a seperate account really just for savings, not my every day money to go into.

Thanks

YorkshireBoy · 17 May 2017 at 6:19PM

prezzacc wrote: »

I see the linked regular saver pays annualy the interest and i can make penalty free with drawels so how do they calculate the interest? Is it based over a year? Say i paid in 500 a month then in month 9 drew out £3k how would my interest be calculated?

Interest is calculated (as it is for all accounts) each day. For this account, that would be:

Closing Balance x 5% / 365

I would switch, but i want it as a seperate account really just for savings, not my every day money to go into.

£2.5K dumped in the FlexDirect would generate (£2.5K x 0.0489

£122.25 in interest over the year.

Finding out how to 'switch' without switching your main account would almost double this return to £222.25 - and make your friend or family member £100 into the bargain. A total of £322.25 between you.

Fancy doing a bit of research? Or maybe you're not interested in doubling your return?

prezzacc · 17 May 2017 at 6:39PM

Hi Yorkshire Boy, Im learning ! And yes, i am off to research that right now as i didnt know that was possible!

Appreciate the heads up , most certainly will be looking into this.

Thanks

Somewhere to save a small amount and drip feed for best interest

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