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    • MDE
    • By MDE 3rd Jan 18, 12:58 PM
    • 149Posts
    • 73Thanks
    Am I making the most of my savings?
    • #1
    • 3rd Jan 18, 12:58 PM
    Am I making the most of my savings? 3rd Jan 18 at 12:58 PM
    I've been lucky enough to be able to put some money away over the past few years, but as interest rates have fallen and fallen I have always been concerned that I am not making the most of the money in terms of interest earnings.

    I have few requirements... I want most of the money to be easily accessible, I want to be able to manage it online as much as possible and I like being able to see it grow... so monthly interest is nice but not essential.

    I currently have:

    Nationwide Flex personal account. Generally starts at about £2000 at the start of the month and drops to a few hundred at the end of the month as I have spend and moved money to higher interest places.

    Nationwide Flexplus Joint account, from which all household bills are paid. We do use the benefits provided with this account.

    TSB monthly saver- has a £250 standing order going in to it each month.

    TSB Classic Plus- Balance maintained at £1500 to maximise interest. 2 direct debits go out each month and a standing order in to and out from Nationwide to fulfil all requirements.

    Nationwide Flex Monthly Saver with £500 standing order going in each month.

    Post office Online Saver with £3125 in it, which is used to "dump" any excess money in.

    Al Rayan Bank 1 year fixed @ 5%, matures in August.

    I have a credit card with £0 balance, a mortgage which I overpay by small amounts each month and a car on PCP @ 0% so no benefit in overpaying this.

    Is there any better way I could use my money? I am not averse to investing but don't really understand what to do with this!
Page 2
    • ValiantSon
    • By ValiantSon 5th Jan 18, 7:43 PM
    • 2,013 Posts
    • 1,863 Thanks

    I have had an FD account before so wouldn't get the £125. HSBC look to have a decent offer at the moment? £150 plus additional £50 after 12 months. Any drawbacks?
    Originally posted by MDE
    Yeah, in that case then you won't get the switching bonus to First Direct and HSBC will probably be a better bet as it would return £280.64 after the first twelve months. I didn't suggest it before as you were looking for accounts allowing the highest pay in. Of course, there is nothing to stop you from switching to HSBC for their offering and opening a new First Direct account to benefit from the regular saver (and as Cold Iron has suggested, you can actually avoid the minimum pay in for First Direct through having £1 in a savings account with them). If you did this then you would make £377.41 (if you have £550 p/m available to put in regular savers). I should have thought of this to begin with!

    I can't see any major downsides with HSBC. Some people report that they can be a bit fussy to get approval for an account with, but there is no real harm in trying. If they don't accept you then you haven't really lost anything.
    • pete-20-11
    • By pete-20-11 5th Jan 18, 9:22 PM
    • 189 Posts
    • 133 Thanks
    The TSB monthly saver can be beaten - Lloyds, BOS and Halifax increased theirs to 2.5% in December. TSB are still paying the 2% they were paying before the base rate increase.

    You might find this Regular Saver thread useful:
    Originally posted by Kim_13
    Itís strange that TSB is mentioned on this page but not Halifax which pays more!
    • StarShapedPeg
    • By StarShapedPeg 5th Jan 18, 10:06 PM
    • 74 Posts
    • 306 Thanks
    HSBC require two direct debits or standing orders and they have a high pay in of £1750/month but again, you can just cycle this in and then out again.
    I had a bit of a faff getting ID for online banking but since then itís been very straight forward.
    #138 - The "Save 12k in 2017" challenge
    #019 - The ďSave 12k in 2018Ē challenge
    • MDE
    • By MDE 5th Jan 18, 10:34 PM
    • 149 Posts
    • 73 Thanks
    Thanks for all the assistance so far. I've had a look at the HSBC offering and the monthly saver has quite punitive rules if you need to withdraw. Bearing in mind I need to change the car or pay off the finance in August I'd rather steer clear of this.

    I think I am going to switch me personal Nationwide Flex to an HSBC advance, this will give me the switching bonus. I will keep the Nationwide regular saver as our joint account is with Nationwide, and I will keep the TSB regular saver as I have a classic plus account with them.

    This places £500 of the £750 I normally save regularly. I will probably put the remaining £250 in my Post Office account as it's the best other option I've got at the moment.... I think!
    • YorkshireBoy
    • By YorkshireBoy 5th Jan 18, 10:39 PM
    • 30,157 Posts
    • 18,015 Thanks
    Does your partner already have a Flexclusive regular saver or even a FlexDirect? If not, maybe consider using their ability to generate 5% easy access for you? That's if you trust each other...and you must do if you have a joint account.

    Re the HSBC regular saver, would you need to withdraw from both 5% regular savers in August? If not, then just withdraw from Nationwide which has no penalties.
    • MDE
    • By MDE 5th Jan 18, 10:47 PM
    • 149 Posts
    • 73 Thanks
    I don't think she'd be too interested in having accounts in my name.... She'd see it as money laundering!

    Unknown how much I'll need in August but I'd rather not tie too much up!
    • YorkshireBoy
    • By YorkshireBoy 5th Jan 18, 11:13 PM
    • 30,157 Posts
    • 18,015 Thanks
    Unknown how much I'll need in August but I'd rather not tie too much up!
    Originally posted by MDE
    You'd have £2K by August. If you've £1,500 in TSB (and you must have, if you're considering using PO savings) you'd use that first wouldn't you?...and take the £500 shortfall from Nationwide. Unless you're clearing all your accounts out to sort the car situation.
    • soulsaver
    • By soulsaver 5th Jan 18, 11:46 PM
    • 1,714 Posts
    • 685 Thanks
    Al Rayan Bank 1 year fixed @ 5%, matures in August.
    Originally posted by MDE

    Al Rayan bank 1 year fix @5% ending August this year? Is that a typo?
    • MDE
    • By MDE 6th Jan 18, 8:54 AM
    • 149 Posts
    • 73 Thanks
    Al Rayan bank 1 year fix @5% ending August this year? Is that a typo?
    Originally posted by soulsaver
    I don't think so. I may have remembered the expected profit figure wrongly.
    • MDE
    • By MDE 6th Jan 18, 8:59 AM
    • 149 Posts
    • 73 Thanks
    In reply to Yorkshireboy, you raise a good point, I'll open the regular saver with HSBC once my switch goes through.
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