Best account for up to 1k?
Zola.
Posts: 2,204 Forumite
I have a separate 'e saver' account on Santander that I have recently started using for a mortgage over-payment fund.
The T&C's on our mortgage says any over payments need to be over £1000. I setup a standing over for £400 to go to this every month. The idea is that it is siphoned off purely for over-payments. Then every 3 months I will empty it to send the over-payment.
The interest rate however is dreadful on the e saver. What would be a good option to maximise interest for what I need?
The T&C's on our mortgage says any over payments need to be over £1000. I setup a standing over for £400 to go to this every month. The idea is that it is siphoned off purely for over-payments. Then every 3 months I will empty it to send the over-payment.
The interest rate however is dreadful on the e saver. What would be a good option to maximise interest for what I need?
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Comments
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Nationwide offer 5% on balances of up to £2500.
However, as you'd probably want this as an ongoing thing (plus that NW offer is best used when you have £2500 to stash for 12 months), I'd suggest a TSB Classic Plus account. It currently has an interest rate of 3% on up to £1500, requires no direct debits. Just an ongoing monthly payment of at least £500. A bit over the £400 you want to put in, but I don't think any other account offers a lower required deposit than that.0 -
I have a separate 'e saver' account on Santander that I have recently started using for a mortgage over-payment fund.
The T&C's on our mortgage says any over payments need to be over £1000. I setup a standing over for £400 to go to this every month. The idea is that it is siphoned off purely for over-payments. Then every 3 months I will empty it to send the over-payment.
The interest rate however is dreadful on the e saver. What would be a good option to maximise interest for what I need?
You might find this article useful: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts0 -
or you could work out exactly how much interest you are missing out on and come to a conclusion that way..0
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This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.binaryuniverse wrote: »Nationwide offer 5% on balances of up to £2500.
However, as you'd probably want this as an ongoing thing (plus that NW offer is best used when you have £2500 to stash for 12 months),0 -
Barclays Reward account is £800 per month requirement.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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Kernel_Sanders wrote: »This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.
3.09% fixed for another 2.5 years, (was a 5 year originally).0 -
Kernel_Sanders wrote: »This is very misleading. The account is the best for his purpose and he only needs add £1000 from another a/c (such as the TSB) and then immediately return it for those months where no payment is outgoing. After a year, when NW Flex Direct will start paying 1%, he can use the TSB. Mind you, if he's already started depleting an account paying 5% to reduce mortgage interest, you have to question the rate of his current mortgage.
Sorry, but I can not agree with that. I don't feel that using up that one time offer of 5%, for 12 months is good, if they're only going to have a small amount (up to £1200, going by the OP, before they make the overpayment) in there. It's a waste of a good deal. You need to maximise it as fully as possible, with a full £2500 in there to get the most interest. The TSB account gives a decent rate of interest, only requiring a slightly higher payment than they currently want (less juggling about) and is indefinite (as far as we know. Rates can, and do, change at any time).0 -
Well you don't know if it's still going to be there in a year do you, and even if it is then presumably the OP wouldn't have the savings to fund it, seeing as he thinks overpaying is prudent. This would confirm that it's not....binaryuniverse wrote: »Sorry, but I can not agree with that. I don't feel that using up that one time offer of 5%, for 12 months is good, if they're only going to have a small amount (up to £1200, going by the OP, before they make the overpayment) in there.
Even at 20% tax it would be better to keep the money in the NWFD. You can also open the NW FlexSaver also paying 5%, so I wouldn't even start thinking about mortgage overpayments until 2019.3.09% fixed for another 2.5 years, (was a 5 year originally).0
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