Best savings account?

[Merlin5]

I've got a certain amount of money in a Barclays Everyday Savers account where the interest is very low, about 0.25%. With interest rates going up to 3%, I'm wasting my time keeping my money with Barclays. Can anyone recommend a better place to accumulate more interest?

 

[Merlin5]

Check the usual places

moneysupermarket / moneyfacts - take your pick.

Without sounding harsh - you could literally have googled "best savings rates" yourself in the same time as making this post.

Several recent mentions of a Santander savings account (think it had a deadline for the rate though), offering >2.5% I think. I'm with Chase who are currently on 2.1%. Martin Lewis did say today, some are taking the mick by not offering competative rates. You can find more info below .

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

These obviously all relate to rates before today's increase.

Thanks guys and thanks for the links. Barclays might be better than I thought. I see they do an account called Barclays Rainy Day Saver at 5.12% for a limited amount of money, so I'll speak to them about that.

 

[Merlin5]

Marcus are offering ~ 2.5% which is a very easy win at the moment, because it's up to £250k.

Santander's savings account at 2.75% is a regular saver (The one I can see anyway!) which only allows you to pay in up to £200 a month, meaning at the end of the 12 months you get £35 in interest. Okay if that's all you can save per month, but not so good if you've got a lump sum you want to lock up for a year.

If I want to transfer a lump sum of a few thousand straight into say an easy access account like Marcus at 2.5%, that would be the best way to get maximum interest right? If I'm going to use an online only account like Marcus, do I just sign up and then they contact Barclays to get the money transferred?

 

[Merlin5]

If you have Barclays then pay £5 for Blue Benefits, then open a Rainy Day Account for 5.07% interest. If you have 2 Direct Debits set up then you get the £5 back, another £3 if you have a Barclays mortgage.

I basically now get £3 for free by having this because i have a mortgage with them anyway.

Next best I think currently is Santander at 2.7%. Chase is 2.05% i think....all are instant access.

Apart from Barclays, the rest should really be higher than like 2% now. Rainy Day account's 5% only applies to £5k, the amounts over that gets pittance.

Thanks, I've not heard about Blue Benefits. I'll speak to Barclays about it.

 

[Merlin5]

You shouldn't be worried about "consolidating" and "lump summing" - you should be maxing everything available.

E.g. £5k in Barclays @ 5%, and then check if you can swing a joint account for another £5k, then whatever is left into the next best etc...

Right. I won't be able to swing a joint account but yeah, if I do £5k at 5% and the remainder I want to transfer at 2 to 3% with some other account/bank, that's probably the best way?

 

[Merlin5]

Are you in a position to lock it away for a year or 2? That would get you the best returns.

Hmm, not sure. I think I probably can. That would be a fixed account with no access right?

You get a sort code and account number and do a bank transfer into your savings account.

Awesome, thanks.

You can do it on the app, click a few buttons and you will have it in minutes.

Thanks Raymond.

 

[Merlin5]

Wait another 2 weeks, 5% 1 year fixed will be available (4.5% available now)

Sounds good to me. I'll wait a bit longer.

 

[Merlin5]

i had the same account with barclays (actually still have it now but almost empty)...................... personally i recently opened a fixed isa with leeds building society, 5 years fixed, moved a few old isas into it and maxed out this years allowance.... iirc its around 4.5% interest give or take.

also have the full 20k in a santander 1,2,3 account.

I still haven't moved my money out of the Barclays Everyday Savers account and really should do it now. That Leeds fixed ISA sounds good. However, I've just checked their website and it says cash ISA is 3.65% for 1 year, 3.90% for 2 years and 3.95% for 3 years. Though I see Raymond Lin moved his money into a Barclays 1 year fixed ISA at 4%. Since I'm with Barclays, maybe it's easier to just use my app and transfer into that?

Barclays have their Blue rewards account now, with a rainy day saver that pays 5% on 5K

I was considering that. I didn't want to pay £5 per month for that Blue Rewards account in order to open the Rainy Day Saver, but Raymond mentioned that the fee is returned if you have a couple of Barclays direct debits set up, which I do. But the problem is I want to put £10K in and it only allows £5K.

My maths isn't great but would I be better off putting all £10K into a fixed 4% Barclays ISA, or splitting the money between the 4% fixed ISA and 5% Rainy Day Saver?

 

[Merlin5]

At the basic level then splitting it will give you more interest overall by £50. The main thing you'd need to take into account for your circumstances is the ISA is tax free interest whereas the Saver account is taxable, and wether you'd go over your £1000 interest allowance (or £500 allowance if a high rate tax payer)

£50 a year better off to split it, assuming you're getting the £5 monthly fee knocked off also ignoring any tax benefits from the ISA.

Thanks guys. Hmm, well I probably won't need to withdraw any interest allowance. Are you saying that going with just the tax free ISA might save me more money than getting the £50 extra by splitting it? I think I'd better have a chat with Barclays tomorrow, ask them some questions and then make a decision.

 

[Merlin5]

that sucks, they must have cut it. i am on issue 144 and just checked its 4.31% for me

its a gamble anyway, if interest rates keep going up i could regret it being locked out for so long................... i just have a feeling they will level off soon (but my feelings when it comes to money usually are wrong)

that kroo account mentioned above i am really tempted with

Oh I didn't see issue 144, whatever that is, but that's a good rate. Still, I'm lazy and since I'm already with Barclays who are offering 4%, that's good enough for me right now.

 

[Merlin5]

Probably not unless you've got a lot more money making interest somewhere as you've got £1k/£500 allowance before paying tax on interest as Freakbro says.

Tax on savings interest

You do not pay tax on your savings interest if you're on a low income.

www.gov.uk

Ah, I see, thanks. Sorry, I misunderstood what Freakbro said about interest allowance. Right then, I'll check with Barclays tomorrow that I'd be eligible to get a Blue Reward account fee back, open a Blue Reward account, then open a Rainy Day Saver account and the fixed ISA account.

 

[Merlin5]

Just popped into a Barclays branch in London and I've finally moved my money. Couldn't do the Rainy Day Saver because it stipulates I'd need to put a certain amount of money in each month in order to be able to open a blue reward account and I'm sort of semi retired. I would have qualified for getting the monthly fee paid back though as I have multiple direct debits. But I opened a 1 year flexible cash ISA account fixed @ 4% and transferred more than £10k from both my Instant ISA with its measly 0.5% interest or something like that, and my Everyday Saver account. All done and this time next year will have made £462 interest. \°/