The Lemon Fool

My 5% at £500 per month for 12 months Flexclusive Regular Saver matures at the end of this month. As I understand it I can open a new one on 1 December, but what would be the sensible thing to do with the £6000 + I have accumulated in 2016? I suppose I could just leave it in my current account and use it to feed the new FRS, but that really defeats the object and inflation will reduce its value in any event . With gritted teeth I have just renewed an ISA at a measly 0.8% for one year (I'm too old at 83 to invest for the long term ). At my age it doesn't make sense to look too far ahead!

Any sensible advice would be appreciated.

Tricia

Hi Tricia,

Are you looking for an easy life, or do you want to do some work for it?

Bank of scotland vantage pays 3% between 3k and 5k. You do have to pay in 1k per month and pay 2 direct debits. A tesco savings account can be the 2 direct debits.

Once it drops below 3k the rate becomes 2%, and 1.5% below 1k.

Nationwide have their flexdirect account that pays 5% for 1 year upto 2.5k as another option.

Tesco bank pay 3% upto 3k,but you can have 2, and there are no pay in requirements or direct debit requirements. I suppose that might be easiest.

Paul

Hi Paul,

Thank you for your suggestions. BOS is no good for me as I have a Flexdirect a/c with Nationwide which requires a monthly pay in. I already juggle between Nationwide and Halifax transferring back and forth to take advantage of their schemes! As for Tesco - I don't shop there and wouldn't want to use their banking facilities either so I'm wondering if it might be worth looking at Coventry Building Society. I think I read something but can't remember if they too require a monthly pay in.

Tricia

Hi Tricia,

Here's a list of what appears like the best deals

https://www.bankaccountsavings.co.uk/calculator

If you click the tick box next to High-interest Current Accounts & Regular Savers you'll see them all.

http://imgur.com/a/ft3Bn

If you don't want any hassle, the best easy access are here

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#easyaccess

I still think Tesco is a good move. If you don't like them as a business, you can take solace from the fact that the 3% rate actually loses them money.

You can have Bank of Scotland and Halifax current accounts.

You don't have to shop at Tesco / own a Clubcard to open a Tesco current account. They are stand alone accounts, probably the best and easiest way to save your cash. It just sits there and you skim off the interest each month. Just open an account, pay in 3k and forget - or set up a text message to tell you when the interest is paid.

paulnumbers wrote:Bank of scotland vantage pays 3% between 3k and 5k. You do have to pay in 1k per month and pay 2 direct debits. A tesco savings account can be the 2 direct debits.

What's more, you can have three of the BoS accounts, thereby getting yourself 3% on up to £15k.

monthly payin - for most banks you just need to transfer between them. So get 3 BOS accounts and do a monthly transfer between them. For accounts like Santander it has to come from a different name, so transfer between your partner.

miker103 wrote:monthly payin - for most banks you just need to transfer between them. So get 3 BOS accounts and do a monthly transfer between them. For accounts like Santander it has to come from a different name, so transfer between your partner.

No that's the not the case, I've had Santander for years and just do transfers from my other accounts for the £500 per month.

Hi, Tricia,
I am in a similar position as my Nationwide Flexclusive Regular Saver and normal Regular Saver both finish on 1st and 2nd December.

What I expect to do is to hold the released money in my Nationwide Loyalty Saver which gets the 15 year loyalty rate of 0.95% and move it into a new Flexclusive Regular Saver at the £500 per month that you mentioned, using the online banking. So over the 12 months, the 12*500 = 6000 gets half of the 5% rate and half of the 0.95% rate = 0.5*(5+0.95) = 2.975% averaged over the year from the balances in the 2 accounts. (I hope my maths is OK!)

If you haven't been a member for 15 years, the Loyalty Saver rate starts for new accounts at 0.65% and builds up with your years of Nationwide membership, but you already have the Flexdirect account. At least it is a bit better than keeping the money in the ordinary Flex current account at 0.0% and you don't have to move it between different banks.

Tramrider

Thanks for all the advice. I've been mulling over it all and think I may put the money into an 18 month bond with the Charter Savings Bank at 1.4%. That way I can start a new 5% Flexclusive saver at £500 a month on 1 Decembcer and earn a 'reasonable' interest on the matured cash - always keeping in mind that interest rates on both of these could change before then! If that should happen, then it's back to square one .

Tricia

paulnumbers wrote:

miker103 wrote:monthly payin - for most banks you just need to transfer between them. So get 3 BOS accounts and do a monthly transfer between them. For accounts like Santander it has to come from a different name, so transfer between your partner.

No that's the not the case, I've had Santander for years and just do transfers from my other accounts for the £500 per month.

I assure you it is the case, if you get the interest on the 123 Account the other account must have a different name, a different initial is sufficient.

miker103 wrote:

paulnumbers wrote:

miker103 wrote:monthly payin - for most banks you just need to transfer between them. So get 3 BOS accounts and do a monthly transfer between them. For accounts like Santander it has to come from a different name, so transfer between your partner.

No that's the not the case, I've had Santander for years and just do transfers from my other accounts for the £500 per month.

I assure you it is the case, if you get the interest on the 123 Account the other account must have a different name, a different initial is sufficient.

I get interest on my 123 account and my transfers in (and out) are from/to other accounts in my name -- they have to be as there's only me!

miker103 wrote:

paulnumbers wrote:

miker103 wrote:monthly payin - for most banks you just need to transfer between them. So get 3 BOS accounts and do a monthly transfer between them. For accounts like Santander it has to come from a different name, so transfer between your partner.

No that's the not the case, I've had Santander for years and just do transfers from my other accounts for the £500 per month.

I assure you it is the case, if you get the interest on the 123 Account the other account must have a different name, a different initial is sufficient.

I guess our argument is of the type, you say that all sheep are white, but I have a black sheep, my parents have a black sheep, and the other poster in this thread has a black sheep.

The Santander current account Key Facts document says "The £500 minimum monthly payment does not include ....amounts transferred into the account from another Santander account in your name (including any joint accounts)."

This suggests that it's intended to mean accounts that you own - regardless of the name on the account. The systems for identifying this may not be perfect

chas49 wrote:The Santander current account Key Facts document says "The £500 minimum monthly payment does not include ....amounts transferred into the account from another Santander account in your name (including any joint accounts)."

This suggests that it's intended to mean accounts that you own - regardless of the name on the account. The systems for identifying this may not be perfect

I may have misunderstood. The account I use to transfer to Santander to satisfy the £500 funding is in the same name but from a different bank