Over 100k in savings - am I using the right accounts?

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  • kidmugsy
    kidmugsy Posts: 12,709
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    Depending on where you live you could look at accounts at local building societies e.g. in East Anglia the Saffron and the Ipswich offer good regular savers at the moment.

    And wherever you live there are always Premium Bonds. They pay an average of 1.4% p.a. - with a large variability of results of course - and there's no need to fanny about with DDs, minimum monthly inputs, and so on.
    Free the dunston one next time too.
  • kidmugsy
    kidmugsy Posts: 12,709
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    bundly wrote: »
    I am interested in this thread as I am about to have £13,000 lump sum then £220 pm to invest/save.

    Lots of good ideas here, thanks.

    That Nationwide e-saver is a bit of a con. They claim 5% but that is not the case as you cannot invest it all as a lump sum. There is a maximum per month, and I think it works out at between 3 and 3.5%.

    Bundly

    PS I am interested to note that when MrRobots asks this question he is treated seriously and with respect. I asked an almost identical question and was treated with rudeness and mockery.

    It isn't a con. Was MrRobots so dim as to suggest it was?
    Free the dunston one next time too.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    bundly wrote: »
    That Nationwide e-saver is a bit of a con. They claim 5% but that is not the case as you cannot invest it all as a lump sum.
    No, they advertise a very truthful 5% AER.
    There is a maximum per month, and I think it works out at between 3 and 3.5%.
    It works out at exactly 5% AER.

    You need to understand that you cannot earn interest on money that is not in the account.

    So you have a choice...do you want to save £250 a month in an account paying 5% AER, or would you rather save £250 a month in a 1% AER account?

    Or how about putting £3,000 in an account paying 1% AER and drip feed from there to the 5% AER account and enjoy a return of just over 3% AER on the lot?

    I've mentioned "AER" quite a lot there. Do you understand what it means?
  • Alter_ego
    Alter_ego Posts: 3,842
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    bundly wrote: »

    PS I am interested to note that when MrRobots asks this question he is treated seriously and with respect. I asked an almost identical question and was treated with rudeness and mockery.

    Probably just the luck of who was on line/who replied. I doubt if it was the same posters.
    I am not a cat (But my friend is)
  • rathernot wrote: »
    If you don't want to spend half your life juggling accounts for £50/year I'd just go with an NS&I bond.

    Takes me zero time at all. They have these things called "standing orders" which are helpful.
  • rathernot
    rathernot Posts: 339 Forumite
    £50k into an NS&I guaranteed bond is 1.95% guaranteed for the life of the bond.

    More than happy to eat humble pie but I'd be interested to know how people are beating this without a lot of time put into opening accounts and orchestrating the required deposits and withdrawals most seem to require.
  • greenglide
    greenglide Posts: 3,301
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    I'd be interested to know how people are beating this without a lot of time put into opening accounts and orchestrating the required deposits and withdrawals most seem to require
    Because the definition of "a lot of time" does vary a great deal of time from one person to another.

    Twenty pounds or more each month will also mean a great deal more to some people than others.
  • rathernot
    rathernot Posts: 339 Forumite
    greenglide wrote: »
    Because the definition of "a lot of time" does vary a great deal of time from one person to another.

    Twenty pounds or more each month will also mean a great deal more to some people than others.

    Of course, entirely fair point, I was replying in the context of this thread which is someone with £100k of cash already saved.
  • greenglide
    greenglide Posts: 3,301
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    When I reached £100k I would have given up!

    (Which is easy to say when you have no need for significant cash savings)
  • bundly
    bundly Posts: 1,029 Forumite
    No, they advertise a very truthful 5% AER. It works out at exactly 5% AER.

    You need to understand that you cannot earn interest on money that is not in the account.

    So you have a choice...do you want to save £250 a month in an account paying 5% AER, or would you rather save £250 a month in a 1% AER account?

    Or how about putting £3,000 in an account paying 1% AER and drip feed from there to the 5% AER account and enjoy a return of just over 3% AER on the lot?

    I've mentioned "AER" quite a lot there. Do you understand what it means?

    I really need to get this sorted out and understand it fully.

    "The annual equivalent rate (AER) is interest that is calculated under the assumption that any interest paid is combined with the original balance and the next interest payment will be based on the slightly higher account balance. Overall, this means that interest can be compounded several times in a year depending on the number of times that interest payments are made."

    But someone on another thread said, it's not a genuine 5% because .... ?

    But having had a scoot around, it's still the best deal going for someone in my position, I think.
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