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For example I have a setup thus:
Each payday I put a grand into a Nationwide account (Flexsomething) that gets 5% interest on 2,500
The next day I take the grand out and put it into a Santander 1-2-3 account, which gets 3% interest on a maximum of 20,000. This is also my current account.Does the Nationwide money not have to sit in the account? Or do you mean you have already maxed out £2.5k and just flow the money thought to meet the terms of the account?
hugo7-
You have to pay in a grand per month, so you can take it out again the next day, along with the interest earned from the previous month.
There are a lot of accounts like this, but the problem is if you've already got a lot saved, there aren’t enough accounts available. This is why having three Santander 123s is so useful, even with the new crappy interest rate.
I guess savings accounts are only useful if you need instant access e.g. house deposit. I am thinking of putting some money in a 1-year fixed bond since I think rates are more likely to fall than rise in my expected house-buying timescale. Not sure though.
lae
How much money have you got (you don't have to answer this) and what do you want to do with it? If you want to buy a house in the next couple of years, rather than leaving it in there long-term, you might do better with current accounts.
For example I have a setup thus:
Leftovers and interest currently goes into my old Natwest account which gets 1%, so I need to find something better.
So we get 3% on most of our savings and 5% on a few grand more.
Of course fidbod actually seems to know his shit... you would be better off listening to him for anything longer-term than a couple of years. But the method I use gets reasonable returns immediately and you can take your money out at any time, so if you want to buy a house imminently it might be a better option.