Where to invest £7000

BMTH
BMTH Posts: 77 Forumite
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in Savings & investments
Unfortunately I'm not eligible for an ISA or LISA and my only current account and savings account are with Natwest (interest is non-existent).

Won't be touching this money.
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  • pramsay13
    pramsay13 Posts: 1,950 Forumite
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    I would open some of the decent interest-paying current accounts and store some in there.
    e.g. Nationwide Flexdirect 5% on up to £2,500
    TSB 5% on up to £1,500.
    https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/
  • fiestaman87
    fiestaman87 Posts: 81 Forumite
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    BMTH,

    Just out of interest, why do you not qualify for an ISA?
  • BMTH
    BMTH Posts: 77 Forumite
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    fiestaman87 wrote: »
    BMTH,

    Just out of interest, why do you not qualify for an ISA?

    I bought a house a few years back on a HTB scheme.
  • ryannnking
    ryannnking Posts: 45 Forumite
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    Have a look into the different savings accounts.

    Nationwide you can earn 5% on £2.5k. Then another 5% in a different type of account, but you can only add £250 per month.
    Tesco you can earn 3% on £3k.
    Marcus you can earn 1.5% for the first year up to £250k.

    You could also look into money market funds, which are usually quite safe, but more risk than a current account. Think these pay around 2-2.5%.

    Ryan
  • fiestaman87
    fiestaman87 Posts: 81 Forumite
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    BMTH wrote: »
    I bought a house a few years back on a HTB scheme.

    But that's a HTB ISA. You still can get a normal ISA although if you have savings of less than about £20,000 (£10,000 if you're a high earner) they're easily beaten by other high interest savings accounts.
  • xylophone
    xylophone Posts: 44,394 Forumite
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    If you have never had a Nationwide Flexdirect current account, open one and deposit £2500.

    Open a TSB Classic account and deposit £1500. Set to paperless.

    Open a Tesco current account, making sure that you have 3 DDs on it.

    Deposit £3000.

    Set up a same day mid month SO to send £1000 from NW to TSB and from TSB back to NW.

    Set up a same day mid month SO to send £750 from NW or TSB to Tesco and back again.

    Open a monthly saver with NW and deposit the interest gathered from accounts plus anything you can afford up to £250.
  • badger09
    badger09 Posts: 11,205 Forumite
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    BMTH wrote: »
    Unfortunately I'm not eligible for an ISA or LISA and my only current account and savings account are with Natwest (interest is non-existent).

    Won't be touching this money.


    For how long?

    If long term, ie more than 5, and ideally more than 10 years, have you considered S&S ISA?

    Have you thought about additional pension contributions? Could you benefit from additional employer contributions?
  • webjaved
    webjaved Posts: 618 Forumite
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    Nationwide Flexdirect 5% on up to £2,500

    Is that up to £2,500 per month?
    Save £12k in 2019 #154 - £14,826.60/£12k
    Save £12k in 2020 #128 - £4,155.62/£10k
  • xylophone
    xylophone Posts: 44,394 Forumite
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    Is that up to £2,500 per month?

    No, see the web site for full information.
  • BMTH
    BMTH Posts: 77 Forumite
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    xylophone wrote: »
    If you have never had a Nationwide Flexdirect current account, open one and deposit £2500.

    Open a TSB Classic account and deposit £1500. Set to paperless.

    Open a Tesco current account, making sure that you have 3 DDs on it.

    Deposit £3000.

    Set up a same day mid month SO to send £1000 from NW to TSB and from TSB back to NW.

    Set up a same day mid month SO to send £750 from NW or TSB to Tesco and back again.

    Open a monthly saver with NW and deposit the interest gathered from accounts plus anything you can afford up to £250.

    Regarding the Nationwide account on the website it says

    " To benefit from in-credit interest, you'll need to pay in a minimum of £1,000 per calendar month (excluding transfers from any Nationwide account held by you or anyone else).
    "

    Does this mean I'll have to deposit £1000 each month after the initial £2500 to benefit from the 5% for the 12 months?

    Also.. I'm not too brushed up on this so apologies but 5% of £2500 is £125 right? So that's what I'll be getting p/m?
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