Piggybanking method with multiple banks or within one bank?
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I don't piggybank anymore. Our income and outgoings go out of Santander 123 and our emergency fund of £20k sits in there earning 1.5% (fee covered by cashback on our monthly direct debits.) We have our home improvements and car savings money and holiday savings sitting in Tesco internet saver and Tesco current accounts earning between 1.4% and 3% but we always take from the 1.4% internet saver. My personal spending money is in FD earning no interest but gives a 2nd bank option in case Santander and Tesco are both down.
We no longer transfer money out to regular savers as early retired now and trying to just focus on outgoings being less than income. When the Santander 123 builds up we just transfer to Tesco.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
My main banking is with NatWest rubbish for savings but they've a great mobile app, that really helps me manage my money.
My wages go into, &bills DD's out of, my one current account & I have a SO of £120pm that goes out to a NatWest naff-all interest savings account too. This is to pay for the yearly bills like TV licence & car insurance etc when they come round.
It's not worth having this with a separate bank as I find it easier to be able to see the balance & to also transfer the amount needed instantly to my CC or current account to pay said bill. It rarely has more than £500 in it as money goes in & out fairly often.
My emergency fund is with a different bank in a better interest savings account where I can't see it & get tempted to spend.... & I also have SO's & DD's that go out on payday to my investments & regular savers.
Usually, all my bills, savings & investment money has gone to it's designated account by the 1st of each month - so whatever is left in the current account after then is mine to spend.
I also have another, spare, savings account with NatWest which I use as a holding acc - any money left in my current account the day before payday gets moved to here while I decide if I want to invest it, save it or treat myself & spend it. It's never there for long.
Then rinse & repeat on payday.
The best thing I ever did was automate my savings & investment payments to go out by SO, means I've never missed a month or spent the money elsewhere.0 -
enthusiasticsaver wrote: »I don't piggybank anymore. Our income and outgoings go out of Santander 123 and our emergency fund of £20k sits in there earning 1.5% (fee covered by cashback on our monthly direct debits.) We have our home improvements and car savings money and holiday savings sitting in Tesco internet saver and Tesco current accounts earning between 1.4% and 3% but we always take from the 1.4% internet saver. My personal spending money is in FD earning no interest but gives a 2nd bank option in case Santander and Tesco are both down.
We no longer transfer money out to regular savers as early retired now and trying to just focus on outgoings being less than income. When the Santander 123 builds up we just transfer to Tesco.
Santander 123 lite earns same cashback & costs £4 a month less.
You're not getting 1.5% youre getting 1.26% nett after fees0 -
Santander 123 lite earns same cashback & costs £4 a month less.
You're not getting 1.5% youre getting 1.26% nett after fees
Santander lite does not pay interest though and we like keeping a high balance in our current account. We had this debate on another thread.
If you earn no cashback then I agree the rate is 1.26.
As advertised though Santander 123 pays 1.5% with a £5 monthly fee which in my case is covered by cashback on direct debits so my annual return is 1.71%.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
enthusiasticsaver wrote: »Santander lite does not pay interest though and we like keeping a high balance in our current account. We had this debate on another thread.
If you earn no cashback then I agree the rate is 1.26.
As advertised though Santander 123 pays 1.5% with a £5 monthly fee which in my case is covered by cashback on direct debits so my annual return is 1.71%.
But youd get better with a bit of jiggerypokery
Keep minimun in 123 lite & transfer cash from decent paying savings account to meet DD's. Your annual returm isnt that as you'd get same cashback from the lite version. The extra £4 a month just isnt worth it.
What people do is up to them, but im getting on average about 2.6% accross the board (on about £50k) & i dont like people being short changed.0 -
But youd get better with a bit of jiggerypokery
Keep minimun in 123 lite & transfer cash from decent paying savings account to meet DD's. Your annual returm isnt that as you'd get same cashback from the lite version. The extra £4 a month just isnt worth it.
What people do is up to them, but im getting on average about 2.6% accross the board (on about £50k) & i dont like people being short changed.
I understand that and have done that in the past with opening numerous bank accounts/regular savers and transferring money around every month/ setting up numerous direct debits.
Most of our cash is invested and earning around 5-7%. We are both early retirees and leading an active retirement and constantly watching our current account to make sure there is enough in it not only to cover direct debits but also living expenses is not something we want to do now so the Santander lite would not work for us unless we open another interest bearing current account and keep topping it up.
To get 2.6% across the board you presumably have lots of bank accounts/regular savers? Do you do fixed rate bonds?
We are in the middle of some expensive home improvement projects so may rethink about fixed rate bonds when those are done. We have gone for the easy option I know but we manage well as we are with no effort.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
enthusiasticsaver wrote: »I understand that and have done that in the past with opening numerous bank accounts/regular savers and transferring money around every month/ setting up numerous direct debits.
Most of our cash is invested and earning around 5-7%. We are both early retirees and leading an active retirement and constantly watching our current account to make sure there is enough in it not only to cover direct debits but also living expenses is not something we want to do now so the Santander lite would not work for us unless we open another interest bearing current account and keep topping it up.
To get 2.6% across the board you presumably have lots of bank accounts/regular savers? Do you do fixed rate bonds?
We are in the middle of some expensive home improvement projects so may rethink about fixed rate bonds when those are done. We have gone for the easy option I know but we manage well as we are with no effort.
I do have some fixed bonds & reg savers but those tend to be for ringfenced stuff like stoozing & mortgage overpaying. Where there is a specific timeframe.
The thing with average the average rate, as weve seen with the santander argument, theres different opinions as to how you calculate it. If i exclude the cash i have stoozed because really its not my money the rate is much higher.
Also tesco pay clubcard points on their account for sloshing money into certain accounts. You can do it 6 times a month (cos its a debit card payment there & BACS back so takes a few days) which equates to 9%0 -
I "piggybank" using YNAB but for actually saving money I always try to use the highest interest savings accounts out there. I use a combination of current accounts, easy access savings accounts, regular savers, and kids accounts (for my child's uni funds). At the moment most of my savings are in Nationwide current accounts and savings, Halifax savings accounts, and Marcus savings accounts.
YNAB tells me how much money I have for various purposes..
Then, for everyday spending I use one of the Nationwide accounts and I use Barclays for salary and direct debits.0
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