Savings Account

[jennyjoan]

This is what I have been told by one of the bankers


More information...

In plain English this means, you'll earn interest on the first £2,500 of your balance each month but you won't get any interest on any part of your balance over £2,500.

Now what I want to know does that mean that if I have £10,000 I don't get interest on the £7,500 - sorry for being stupid.

[tonyav]

Now what I want to know does that mean that if I have £10,000 I don't get interest on the £7,500 - sorry for being stupid.


Yep, thats correct jj.

Ridiculous isn't it.

[weecalf]

Why not have 4 @ 2500 then

[fiction-factory]

Or have £2500 with them and then the rest with someone else. You may get a better effective interest rate by offsetting the £5000 (or even the full £7500) against your new mortgage if you go ahead with that

[jennyjoan]

thanks FF - that was a shock. I do have 123 Santander account which I keep to pay bills etc. Since last year I couldn't get savings up - I decided this year to have a separate account to put £1,000 a month so naturally I am looking for the highest rate as I won't be touching it - as I say just using 123. Can you help.

Moneyexpert.com - suggested 123 and Nationwide business of only interest on 2,500 - I am hoping to have at end for this year at least £12,000. Any help is appreciated. Thanks FF

[mikey4444]

Jenny....this is daft....go and find another bank or building society and get a better rate !

[Jackdaw33]

I wish I could save £1000 per month. Lots of people have to live on less than that.

[mikey4444]

Jenny....if you invest £10,000 now and expect here to be an extra £2000 in the account this time next year, I think you will be severally disappointed.

Try a Building Society, instead of a Bank.

[donny48]

A 123 account pays interest up to £20,000.

[jennyjoan]

this is what a I mean - don't know where to go.

on the 123 my savings abysmally and so I sorta wanted to separate the £10000 - I was scammed by gypsies last year and I sorta never got over it. Then the oul neices and nephews have to be helped.

JackDaw what would make you comfortable in having savings in your bank.

I am sorta want to leaving kiddies some money when I go

[jennyjoan]

i think you got mixed re the £10,000 - i was hoping at £1,000 it would be £22,000 a year.

[Jackdaw33]

Scammed by gypsies?

[jennyjoan]

long story

[Old_Geezer]

And now scammed by the bank ?

[Dodger666]

The Santander 123 account pays 1.5%(cut from 3% recently) per month on balances up to £20,000. This interest rate is better than any instant savings account you will find. Stay with it until you reach a balance of £20,000 then look elsewhere for any extra money you have. You will struggle to get more than 1% at present anywhere else.

[New Judge]

"The Santander 123 account pays 1.5%(cut from 3% recently) per month on balances up to £20,000."

It doesn't pay 1.5% per month, dodger (if only). It pays 1.5% per annum but it is paid monthly. That's £1.25 per month for each £1,000 invested.

[fiction-factory]

The Santander123 account also has a monthly fee of £5 a month.

Jenny- I'm not sure whether £22000 is the figure you meant to type.

Tesco pays 3% on its current account but only up to £3000, although oddly you can open more than one.

If you have a Santander did you open the linked 5% regular saver account- you can pay in £200 a month I think.


There are other regular savers that pay 2-3% but they are usually capped at around £250 a month.

To make money from savings you need to spread it around among the best deals- and that can be a pain to manage as they all need passwords and have different end dates and payment/withdrawal rules. At least having most or all at 1.5% in Santander is easier to manage

[New Judge]

I think the Santander "Regular Saver" account has been reduced to 3%.

[jennyjoan]

ok thanks for answers - yes FF I did mean £22,000 - I was talking about the first £10,000 then £1,000 per month which makes £12,000 - £22,000

[Hopkirk]

NJ, the Santander regular savers account is 3% for 12 months, then drops to 0.10%!

[Dodger666]

You're quite right NJ. It is 1.5% per year, not month as I incorrectly typed.