Interest On Your Accounts

[jennyjoan]

Advice please - I have two accounts

1. Current Account with a very low amount of money but interest rate today 0.75%

2. Instant Saver with a large amount of money (for me) with interest rate of 0.10%


All my debts etc are paid from the Current Account etc

but some months ago my current account had been hacked into and so the banker suggested transferring to the Instant Saver account to keep "my monies" safe.

Would you move the monies again to gain the bigger interest rate. I;m not too good with all this so forgive me.

Or shall I leave things alone. I think a few weeks ago the interest for the Current Account had gone up to 1.75%.

[jennyjoan]

ns&i - isn't that the post office - so you should only be able to get them when you have to walk into the post office - is that correct.

[barry1010]

Your money is fully protected. You withdraw money online and it is paid in to your current account. It is an investment, not a replacement for a current account.

[barry1010]

No, it is not the post office and you can only buy premium bonds online

[barry1010]

Sorry, you can also buy them over the phone and by post

[jennyjoan]

right Barry - interesting - so if I needed the money - all I have to do is transfer the money from Premium Bonds to my current account in Santander.

[Peter Pedant]

all the rates are so peanutty
that I wdnt bovva

[barry1010]

Yes, but it isn't instant, it takes at least two days

[jennyjoan]

right Barry - it will be online since the corned beef woman can only do things on the computer.

then all you guys are giving me advice to go for the Premium Bonds - I depend on that advice and thanks for that.

I will be nervous about this as it would be all my savings and leave a few pounds in the current account and close down the other account.

[jennyjoan]

pp - you woldn't bovva with what rates - do you mean the banks etc

[jennyjoan]

Now I am getting cheeky - how will I know about my "winnings" LOL

[barry1010]

You will need money in your current account to pay your direct debit, standings orders and withdraw cash.
You will also need your current account for your pensions to be paid in to.

[Hazlinny]

I would leave more than "a few pounds" in your Current account - you wouldn't want to be withdrawing some of your Premium Bnds to pay bills, etc. on a weekly or monthly basis.

[barry1010]

We get emails to tell us we have won but we also also check our accounts every month on the first working day after the 1st of each month. If you have less than £50k you can choose to automatically invest your winnings in more premium bonds or have it paid in to your current account

[jennyjoan]

yes Hazlinny - know about having money in the current account plus I do have an overdraft which I have never used in my life so if I was in deficit for a day or two wouldn't the overdraft kick in. I think it should

[jennyjoan]

last question of the day - if and when I have to do to get the PremBonds - do I need permission from Santander because it will be a large amount or can I do what I please?

[barry1010]

JJ, you should buy premium bonds with a view to keeping them long term. It is useful to be able to cash them in if there is an emergency but they are not a replacement for a current account

[Prudie]

Premium Bonds are not like putting money in a bank and taking it out when you feel like it. You buy them and then I you want some money you sell them back for face value so it takes some time to transact. Also it used to be that after you buy them you have to wait 3 months before your numbers go in the monthly draw. People only advise putting your money in because the chances of winning have given a better return over the last few years than the very low interest rate. I would also suggest you need to buy a lot to win regularly. I have £1000 worth and win £25 about every 5 years!!

[barry1010]

I bought mine through my Santander account and the transfer went through no problem. No permission needed, no questions asked. Premium Bonds are safe and the transfer is traceable so no red flags are raised at your bank

[Tuvok]

I still feel that you got wrong information from the bank.

Setting up a new account should be easy - and the bank would see to transferring your direct debits.

If you switched to another bank using the Current Account Switch Guarantee then that is what would happen - and do they still offer money to switch banks?

[bednobs]

you dont HAVE to out all your money in them - 50k is the limit, but you can buy as few as £100 to start. Im with prudie - my daughter's had about £2k in them for 7 years and has only won £25 once