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  • Karmacat
    Karmacat Posts: 39,460 Forumite
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    SuperSecretSquirrel wrote: »
    At the end of the day the PBs are a bit of fun mostly funded by free 0% stooze money, so I'm very happy to keep it simple and take the 1%! I'd be even happier to win a million, that would be insta-retirement right there, but 1% and a daydream or two is fine by me :o
    I'm looking forward to the time when my *stuff* is under control, maybe at the start of next month, and I can pay attention to things like stoozing again - done it once, and as long as you pay attention, its good. Loving the "insta-retirement" :)
    2023: the year I get to buy a car
  • edinburgher
    edinburgher Posts: 13,469 Forumite
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    Insta-retirement is a great concept, I maintain a £1 PB balance just in case ;)

    I would definitely consider a slow stooze in future (not a stoozupid like my current one) and I would also consider stoozing to fill ISAs (although who am I kidding that we'll have a spare £20k pa any time soon?)
  • SuperSecretSquirrel
    SuperSecretSquirrel Posts: 1,046 Forumite
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    I found out about this last night. Also, I had somehow missed the news that the "every little helps" bank is making a change this week that will definitely result in them helping me a little less! Their savings accounts will no longer be able to pull funds in via DD :(

    Looks like it's damage limitation time... I have seven genuine DDs to play with (plus a few short term ones for stooze card minimum payments), four of them pay out each month, the three others do so less often. I would need at least ten DDs paying out each month to maintain all my existing current accounts, so it looks like I'll either be signing up for some low value DDs, or giving up some of my accounts.

    I have three accounts paying 3% that don't require any DDs, and can hold a maximum of 6k between them - these accounts are going nowhere. I also have an account that pays £48pa for having two DDs and a £1+ balance - I think I'll be keeping hold of this one (with a minimal balance at all times). I have another account that pays net £36pa for having two DDs and a £1+ balance - I think I'll be keeping this one too (once again maintaining a minimal balance).

    Another account pays varying amounts of cashback based on payment amounts, again requiring two DDs and a £1+ balance. This one only requires two "active" DDs, they don't have to pay out each month - this makes it a good fit for the three irregular DDs. It's not so simple to compare this one against the other accounts, but at best it pays a net of around £55pa (using all seven DDs), closer to £30pa when accounting for the four DDs that are likely already spoken for.

    Finally, there are the three accounts that will soon be paying 1.5% on up to 5k each, and requiring two DDs each. My current thinking is that these will be emptied and left dormant. The 1.5% return is now so close to what is being offered on easy access savings accounts, and even premium bonds (1.4% average return), that jumping through their hoops doesn't seem worth the bother... I have spare capacity in the PB account now, so it does seem like the simplest short term solution, and it would slim down my finances spreadsheet nicely.

    Going this route would see me earn an effective 4.9% from the surviving current accounts (£294pa on total balance of £6003). Taken in isolation, that's pretty good :) I'd also have close to the maximum holding in PBs, with the money easily accessed as and when better offers present themselves (or stooze cards need repaying).

    I'll mull it over for a few days before I make my final decision...
  • SuperSecretSquirrel
    SuperSecretSquirrel Posts: 1,046 Forumite
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    The 1.5% on up to 5k accounts will have a 0.1% advantage over the average PB rate. On the full 15k, that's £15pa, or £1.25pm, or roughly 21p per month per direct debit paid. It's not worth scrabbling around to setup more DDs, or even to shuffle around the stooze repayment ones, for that kind of return.

    Looks like my financial world will be simplified a little further, which is a good thing :)

    Since I'll effectively be giving up three current accounts and two savings ones, I think it's ok for me to add a regular saver :o Just one account should net approximately £90pa on an average balance of £1800 at 5% :)
  • edinburgher
    edinburgher Posts: 13,469 Forumite
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    Isn't it nice to have options and time to think? :)
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    And it's a good time to re-evaluate and declutter the finances a bit. I have 3 accounts to close now due to Tesco savings changes, but i'm actually quite happy to streamline/simplify things a bit. Onwards and downwards!
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • SuperSecretSquirrel
    SuperSecretSquirrel Posts: 1,046 Forumite
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    Sure is Ed and Jimmy :)

    Definitely an opportunity to simplify things a little. "Every cloud" and all that...
  • VDOT47
    VDOT47 Posts: 277 Forumite
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    Glad I never bothered to open any Tesco accounts after all. The Nationwide ones are fiddly enough to try and get right each month!


    This month has the 'mystery' element to it as well of the double whammy of an increase in personal allowance but also the increase in auto-enrolment contributions - so planning this month's overpayment and next month's finances is a bit tricky as I don't have a definitive starting point to work from in terms of income!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (End 11/19) £226,790
    End Date November 2039 Original End Date February 2042
  • shangaijimmy
    shangaijimmy Posts: 3,796 Forumite
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    With you on that one. the mystery of increased auto enrolment increases...
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • Karmacat
    Karmacat Posts: 39,460 Forumite
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    Loving the analysis and cost-benefit, Jimmy. And I'm totally with you on decluttering accounts (and if you keep any paperwork on them, make a note about what you've done). I have a long and boring story about that, but the conclusion is still a good'un :)
    2023: the year I get to buy a car
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