Savings Query linuxpenguins

#1
Hi



Come end of May I aim to have £2.5k in Flex Direct 5%



I will then put £500 each month on 25th into Flexclusive Regular Saver (again, at 5%)



However, I will have £57 remaining. Do I;



A) put this with the £150 monthly spends account

B) save this elsewhere - if so, where

C) put towards my existing £275 mortgage overpayment to make it £332 a month (rate is 2.09%)



Thanks

#2
Why not start putting the £500 each month into Flexclusive Regular Saver in April, or even March, then you can put the extra £57 into the Flex Direct?

And the 25th? the earlier in the month you pay in, the more interest it makes - not a lot, but some.

#3
At the moment I only have £900 in my Flex Direct. Come May, I should have c£2.5k in there.



I get paid on 25th.. so would I be best setting the standing order to go in 1st each month? As opposed to 25th each month?



The extra £57 won't make any interest once I hit 2.5k in the Flex Direct account as far as I know. The max is 2.5k

#4



The extra £57 won't make any interest once I hit 2.5k in the Flex Direct account as far as I know. The max is 2.5k
Originally posted by linuxpenguins


That's why I suggested you don't fill it - start paying £500 into the Flexclusive RS earlier - you still get 5% on all the money, and leave space to add more into the Flex Direct.








At the moment I only have £900 in my Flex Direct. Come May, I should have c£2.5k in there.
Originally posted by linuxpenguins


That's not a reason to not start saving in the Regular Saver immediately. In general it's better to have your money in a regular saver, where you are limited in how much you can add each month, than in a current account at the same rate, where you can add any amount up to the limit should you have a windfall.




I get paid on 25th.. so would I be best setting the standing order to go in 1st each month? As opposed to 25th each month?
Originally posted by linuxpenguins


There are arguments for either. What would the £500 be earning over the last 3-6 days of the month?

#5
My thought process was:



Flex Direct only has 5pc for 12 months starting from point Account was open - so I wanted to get that maxed and then open the regular saver so I had 12 months from point opening that too?



Flawed logic? Confused ha

#6
It's a valid point, but what would you do with the monthly £10 interest and this surplus £57? What will you do with the money after a year? Why didn't you wait until you had £2500 before opening the FlexDirect, thereby maximising the interest?

There's no 'right' answers, just things to consider.



have a look at other threads where Nationwide accounts are discussed, and at this thread and this one on regular savers for ideas on where to put more money

#7
Another thing to consider is that the Flexclusive Regular Saver could be withdrawn at any time (for new customers). With 5% on offer I wouldn't risk waiting.

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