Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • RachaelR
    • By RachaelR 19th Jul 19, 6:17 PM
    • 15Posts
    • 1Thanks
    RachaelR
    Which account is best
    • #1
    • 19th Jul 19, 6:17 PM
    Which account is best 19th Jul 19 at 6:17 PM
    I am about to get a relatively small lump sum and regular monthly pension payment and want to save the lump sum and have the monthly payment paid monthly into the same account. Anyone know what is the best savings account to do this in please. I am not planning on touching it for a few years. Many thanks
Page 1
    • xylophone
    • By xylophone 19th Jul 19, 6:29 PM
    • 30,652 Posts
    • 18,885 Thanks
    xylophone
    • #2
    • 19th Jul 19, 6:29 PM
    • #2
    • 19th Jul 19, 6:29 PM
    This would probably not give you the maximum interest.

    What are the amounts involved?
    • RachaelR
    • By RachaelR 19th Jul 19, 7:02 PM
    • 15 Posts
    • 1 Thanks
    RachaelR
    • #3
    • 19th Jul 19, 7:02 PM
    • #3
    • 19th Jul 19, 7:02 PM
    This would probably not give you the maximum interest.

    What are the amounts involved?
    Originally posted by xylophone
    15000 and around 200 a month
    • brocklee
    • By brocklee 19th Jul 19, 8:38 PM
    • 3 Posts
    • 1 Thanks
    brocklee
    • #4
    • 19th Jul 19, 8:38 PM
    • #4
    • 19th Jul 19, 8:38 PM
    I also am in a similar situation. There's a lot of mobile accounts and regular bank accounts to choose from it's hard to differentiate.
    • Terry Towelling
    • By Terry Towelling 19th Jul 19, 9:09 PM
    • 1,768 Posts
    • 1,482 Thanks
    Terry Towelling
    • #5
    • 19th Jul 19, 9:09 PM
    • #5
    • 19th Jul 19, 9:09 PM
    If it is savings you are after rather than investments there are many options. If you scroll to the top of the screen and click on the banking and saving button you will get plenty of info. Apart from that, here are a few ideas but none of them involve using a single account. If you don't want any faff of multiple accounts stop reading now!

    You might consider a Nationwide FlexDirect current account and a TSB Classic Plus current account. Neither requires any direct debits to get interest but they do have minimum pay-in requirements.

    So, deposit 2500 in a FlexDirect because it will pay you 5% interest for the first 12 months on balances up to 2500. Then deposit 1500 in a TSB Classic Plus account because this will pay you 3% (indefinitely) on balances up to 1500. Then set up same-day standing orders to switch 1000 between the two accounts. Each month you will want to move the interest out because amounts in excess of the limits do not receive interest.

    That takes care of 4K - but you will need to review arrangements in 12 months when the Nationwide account rate drops to 1%.

    Depending how many years you wish to leave the other 11K tied up, there are numerous fixed term accounts offering over 2% PA. These can be a bit of a gamble if interest rates move upwards in the near future and you've committed to, say, 5 years. Conversely, they may be good if rates move down.

    You may also want to open current accounts with other banks that offer 5% regular savers for your 200 per month. Alternatively, there are 'notice accounts' that pay slightly more than instant-access ones. Paragon, for example, does a 120-day notice account paying 1.8%. As it says on the tin, you need to give 120 days notice of the intent to withdraw. The rate is variable, so you need to watch out for changes and new issues of the account that may be offering a higher rate. The account must have a minimum of 500 in it.

    NatWest does a Savings Builder account. As long as your balance increases by 50 per month, you will get 1.5% interest (up to 10K). You can put in as much as you like at any time and withdraw at any time. Balances over 10K receive less interest on the portion in excess.

    Marcus is an instant-access saver that is currently paying 1.5% PA (for the first year).

    There are plenty more options.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

124Posts Today

1,733Users online

Martin's Twitter