Fixed Term Savings Account
Discussion
New to this so please bear with me for stupid questions. Sorry to show raw figures as I dont like doing it but would really appreciate advice.
Got my mortgage sorted, promotion at work and things have settled down. I have 15k sat in a stadard low rate savings account spare from house purchase and am saving around 500 - 550 a month.
Im looking to stick a majority of my savings into a fixed term account with natwest currently 0.50 interest monthly for 12 months. Will stick 13k in so gives me a bit spare for instant cash if anything happens in life. By my calculations 13k would return around 800 in a year interest compounding. Its about 6.1% return.
Firstly, am I doing the right thing? I dont want to get involved with the stock market/ funds.
Secondly I think its a pretty good deal but any advice on better deals?
Thirdly, can you add to a fixed term savings account monthly as I could keep adding to it with my monthly savings?
Got my mortgage sorted, promotion at work and things have settled down. I have 15k sat in a stadard low rate savings account spare from house purchase and am saving around 500 - 550 a month.
Im looking to stick a majority of my savings into a fixed term account with natwest currently 0.50 interest monthly for 12 months. Will stick 13k in so gives me a bit spare for instant cash if anything happens in life. By my calculations 13k would return around 800 in a year interest compounding. Its about 6.1% return.
Firstly, am I doing the right thing? I dont want to get involved with the stock market/ funds.
Secondly I think its a pretty good deal but any advice on better deals?
Thirdly, can you add to a fixed term savings account monthly as I could keep adding to it with my monthly savings?
I think you may have become confused with an account which pays 0.50% annually but the interest is paid monthly.
So to take an example, let's say you lodged £10k. So annually you'd make £50. Which you'd get in monthly instalments of £4.16p or thereabouts.
Hope I'm wrong but I don't think so.
So to take an example, let's say you lodged £10k. So annually you'd make £50. Which you'd get in monthly instalments of £4.16p or thereabouts.
Hope I'm wrong but I don't think so.
Edited by drainbrain on Friday 14th July 23:13
It's 0.5% AER.
£13k will return you about £65 interest over 12 months, or about £91 if you add a further £500 each month.
Spreading the cash around Tesco, Halifax, Nationwide and Bank of Scotland should see you get over 2%. Santander may also work for you.
£13k will return you about £65 interest over 12 months, or about £91 if you add a further £500 each month.
Spreading the cash around Tesco, Halifax, Nationwide and Bank of Scotland should see you get over 2%. Santander may also work for you.
Edited by UpTheIron on Saturday 15th July 05:05
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