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  • FIRST POST
    • egor110
    • By egor110 11th Jan 18, 10:58 AM
    • 33Posts
    • 9Thanks
    egor110
    Make my money work harder
    • #1
    • 11th Jan 18, 10:58 AM
    Make my money work harder 11th Jan 18 at 10:58 AM
    I currently have 2500 in a santander current account ( not 123) and 5000 in a santander savings account earning !!!!!! all.

    I'm thinking of switching the current to nationwide so i get the 5% on 2500 but not sure what to do with the other 5000.

    Tescos offer 3% but i'd then have to repay my wages from the nationwide to tescos as well as have 2 dd , i;d rather simplify things.

    I guess i could shove it in premium bonds ?

    I'm also planning on saving 500 month probably with the nationwide regular saver account .
Page 1
    • movilogo
    • By movilogo 11th Jan 18, 11:06 AM
    • 2,337 Posts
    • 1,570 Thanks
    movilogo
    • #2
    • 11th Jan 18, 11:06 AM
    • #2
    • 11th Jan 18, 11:06 AM
    If you want your money to work harder, you need to think beyond the convention. High St banks will offer you pittance.

    Judge your risk taking ability and depending on that consider investing in Funds, Stocks/Shares, Properties etc. All of these usually offer much better return (but your money can reduce too - hence I said analyze your own risk taking ability first).
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
    • soulsaver
    • By soulsaver 11th Jan 18, 2:08 PM
    • 1,713 Posts
    • 684 Thanks
    soulsaver
    • #3
    • 11th Jan 18, 2:08 PM
    • #3
    • 11th Jan 18, 2:08 PM
    If you have a partner you can get 2 NW Flex Direct 5%, maybe try for 3 of 'em - 2off solo + a joint (but may not be within T&Cs).

    You need to brush up on research - 3 DDs required for Tesco 3% ac.
    And look for more info on refer-a-friend on NW...
    • Westie983
    • By Westie983 11th Jan 18, 3:00 PM
    • 4,355 Posts
    • 14,911 Thanks
    Westie983
    • #4
    • 11th Jan 18, 3:00 PM
    • #4
    • 11th Jan 18, 3:00 PM
    I currently have 2500 in a santander current account ( not 123) and 5000 in a santander savings account earning !!!!!! all.

    I'm thinking of switching the current to nationwide so i get the 5% on 2500 but not sure what to do with the other 5000.

    Tescos offer 3% but i'd then have to repay my wages from the nationwide to tescos as well as have 2 dd , i;d rather simplify things.

    I guess i could shove it in premium bonds ?

    I'm also planning on saving 500 month probably with the nationwide regular saver account .
    Originally posted by egor110
    Nationwide Regular Saver only allows you to save 250 now, and only offers the flexclusive one now for Nationwide current account customers, so as long as you open the current account you could open a regular saver account too.

    https://www.nationwide.co.uk/products/savings/our-savings-accounts/all-savings-accounts


    Westie983
    Save 12k in 2018 #10 Total (25,000)+10,000/12,000 = 83.33%
    Sealed Pot Challenge ~ 11 #97 Total (410) + 40/500 = 8.00% ( x 11)
    Xmas 2018 1 a Day #2 Total 62.59/365 = 17.14%
    Virtual Sealed Pot #1 Total 900/1,000 = 90.00%
    2 Savers Club 2018 #16 Total (1,500)+-480/2,000 = 51.00%

    Total 12,022.59/15,865 = 75.78%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • EJS_Superted
    • By EJS_Superted 11th Jan 18, 4:04 PM
    • 64 Posts
    • 39 Thanks
    EJS_Superted
    • #5
    • 11th Jan 18, 4:04 PM
    • #5
    • 11th Jan 18, 4:04 PM
    You could just upgrade to a Santander 123 account and keep all your cash there earning 1.5% and open a Santander regular eSaver which you can put in 200 per month to earn 5%. It depends how much work you want to do.
    • egor110
    • By egor110 11th Jan 18, 4:10 PM
    • 33 Posts
    • 9 Thanks
    egor110
    • #6
    • 11th Jan 18, 4:10 PM
    • #6
    • 11th Jan 18, 4:10 PM
    If you want your money to work harder, you need to think beyond the convention. High St banks will offer you pittance.

    Judge your risk taking ability and depending on that consider investing in Funds, Stocks/Shares, Properties etc. All of these usually offer much better return (but your money can reduce too - hence I said analyze your own risk taking ability first).
    Originally posted by movilogo
    My attitude to risk would be low risk .

    Aim for this year is to get my savings up to 10k
    • Liffy99
    • By Liffy99 11th Jan 18, 5:39 PM
    • 49 Posts
    • 23 Thanks
    Liffy99
    • #7
    • 11th Jan 18, 5:39 PM
    • #7
    • 11th Jan 18, 5:39 PM
    I just circulate my salary around several current accounts. E.g

    3000 into Clydesdale (2%), leave some to cover direct debits then 2200 of that into
    TSB (interest on 1500 + bonus for using debit card) then 1500 into
    Tesco (3% and no DDs required) then 1000 back into
    Clydesdale

    I used to do this around seven current accounts but, since retiring, I have fewer DDs to spread around to meet account requirements.
    • YorkshireBoy
    • By YorkshireBoy 11th Jan 18, 6:31 PM
    • 30,157 Posts
    • 18,015 Thanks
    YorkshireBoy
    • #8
    • 11th Jan 18, 6:31 PM
    • #8
    • 11th Jan 18, 6:31 PM
    3000 into Clydesdale (2%)...
    Originally posted by Liffy99
    Which specific account is that please?
    • capital0ne
    • By capital0ne 11th Jan 18, 6:41 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    • #9
    • 11th Jan 18, 6:41 PM
    • #9
    • 11th Jan 18, 6:41 PM
    My attitude to risk would be low risk .

    Aim for this year is to get my savings up to 10k
    Originally posted by egor110
    Actually your attitude to risk is quite hig, but you know the risk, because by not doing just alittle work yourself you are happy to lose 3%+ of your money each year.
    • capital0ne
    • By capital0ne 11th Jan 18, 6:42 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    Tesco (3% and no DDs required) then 1000 back into
    Originally posted by Liffy99
    I thought the rules had changed on Tesco accounts now and you do need two DDs
    • ColdIron
    • By ColdIron 11th Jan 18, 6:52 PM
    • 4,260 Posts
    • 5,392 Thanks
    ColdIron
    I thought the rules had changed on Tesco accounts now and you do need two DDs
    Originally posted by capital0ne
    They don't for accounts opened before the new requirements, they need 3 DDs for new accounts
    • branflakes89
    • By branflakes89 11th Jan 18, 7:01 PM
    • 3 Posts
    • 0 Thanks
    branflakes89
    why does no-one suggest investing in peer to peer lending such as the funding circle or zopa? low risk and good returns. I've had money in them for over 2 years and I average around 6% after tax.
    • bowlhead99
    • By bowlhead99 11th Jan 18, 7:06 PM
    • 7,979 Posts
    • 14,516 Thanks
    bowlhead99
    I thought the rules had changed on Tesco accounts now and you do need two DDs
    Originally posted by capital0ne
    Seems a bit discriminatory. As a bloke, I guess I'll have to recruit a suitably-stacked female. Could prove... interesting....

    They don't for accounts opened before the new requirements, they need 3 DDs for new accounts
    Originally posted by ColdIron
    Now *that* sounds like some tricky qualification requirement.





    [I'll get my coat]
    • bowlhead99
    • By bowlhead99 11th Jan 18, 7:26 PM
    • 7,979 Posts
    • 14,516 Thanks
    bowlhead99
    why does no-one suggest investing in peer to peer lending such as the funding circle or zopa? low risk and good returns. I've had money in them for over 2 years and I average around 6% after tax.
    Originally posted by branflakes89
    Difficult to see it as low risk though, if it's an unsecured loan to individuals yielding 6% to the investor after taking a decent margin for the platform.

    Someone who's a reasonable credit risk and more likely than not to make their loan repayments on time and in full can go to Sainsbury's bank and borrow 15k at 3% or 25k at 3.1%. Tesco Bank (subject of this thread) will lend those amounts at 3.3%. I did it myself this time last year.

    If Zopa and Funding Circle are making enough interest rate to pay you 6% and take a decent profit margin for themselves, it stands to reason they may be lending to people less creditworthy than the average person who applies for a decent-sized loan from their supermarket....

    Your P2P lending model has not been tested in a significant economic downturn, only in an environment of broadly rising asset prices and falling market interest rates. So, "low risk and good returns" is unproven. I would suggest "some risk and no better returns than are expected for the risk".

    If the returns were truly good for the risk taken, you would never be able to deploy any money on those P2P platforms because professional institutional investors would deploy their millions via those platforms and take up all the lending capacity. Then the offered yields would fall until the returns were no more than "fair" for the risk. So, you can presume that has already happened and the returns are not actually a 'bargain'.
    • branflakes89
    • By branflakes89 11th Jan 18, 7:56 PM
    • 3 Posts
    • 0 Thanks
    branflakes89
    Difficult to see it as low risk though, if it's an unsecured loan to individuals yielding 6% to the investor after taking a decent margin for the platform.

    Someone who's a reasonable credit risk and more likely than not to make their loan repayments on time and in full can go to Sainsbury's bank and borrow 15k at 3% or 25k at 3.1%. Tesco Bank (subject of this thread) will lend those amounts at 3.3%. I did it myself this time last year.

    If Zopa and Funding Circle are making enough interest rate to pay you 6% and take a decent profit margin for themselves, it stands to reason they may be lending to people less creditworthy than the average person who applies for a decent-sized loan from their supermarket....

    Your P2P lending model has not been tested in a significant economic downturn, only in an environment of broadly rising asset prices and falling market interest rates. So, "low risk and good returns" is unproven. I would suggest "some risk and no better returns than are expected for the risk".

    If the returns were truly good for the risk taken, you would never be able to deploy any money on those P2P platforms because professional institutional investors would deploy their millions via those platforms and take up all the lending capacity. Then the offered yields would fall until the returns were no more than "fair" for the risk. So, you can presume that has already happened and the returns are not actually a 'bargain'.
    Originally posted by bowlhead99
    Well, the way it works is you lend small amounts to hundreds of businesses at different risk rates. My portfolio shows that yes, there are bad debts and people who have gone bust, but that still provided me with the 6% net returns. The UK government has pumped millions into these as well, and some are covered by FSCS.

    If you are total risk adverse you can also choose their low risk packages that still yield above the standard rates of banks.
    • AlanP
    • By AlanP 11th Jan 18, 8:48 PM
    • 1,204 Posts
    • 866 Thanks
    AlanP
    Well, the way it works is you lend small amounts to hundreds of businesses at different risk rates. My portfolio shows that yes, there are bad debts and people who have gone bust, but that still provided me with the 6% net returns. The UK government has pumped millions into these as well, and some are covered by FSCS.

    If you are total risk adverse you can also choose their low risk packages that still yield above the standard rates of banks.
    Originally posted by branflakes89
    They are still a higher risk than a bank account, and if like the OP by the sounds of it, this is your whole savings pot taking risk makes no sense if you don't need to. The objective isn't always to get the highest return.

    Personally I make use of P2P for less than 20% of my available cash, and to reward myself for the higher risk I target more than a 6% return as I could get 5% by using more regular savers.

    As your returns are after tax it sounds like you have more cash to invest than I have, and a lot more than the OP.
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