Optimising Your Finances 2020-08

So I think recently that money management requires a /lot/ of research to get the most out of your money. As a forum centred around financial services I reckon we’re in the best position to work out the best way to save money and capitalise on current offers.

I’ll be posting my current money movement and accounts in an update to this thread. Right now I’m just working out how to move money between accounts via standing orders to make the most possible cash via interest.

EDIT: Currently my accounts stand as follows. (not including longer-term non-liquid assets; for example stonks)

  • Starling (0,05% interest)
  • Halifax (5 a month. 500 monthly card payments required. 1,5k monthly pay-in required)
  • Revolut (0%)
  • FlexDirect (2% interest 1,5k cap. 1k monthly pay-in required)
  • Crypto.com Earn TGBP (10% interest)
  • NS&I Premium Bonds (effectivelly 0%)
  • Marcus (1,05% interest)
  • Virgin Money (2% interest 1k cap)

I’m having the issue of not knowing when they pay standing orders out. But if it works how I think, I can pay 1500 from Nationwide into Halifax then transfer 1000 back into Nationwide. Then I can pay the remaining 500 into Starling/Revolut using card top-ups

I think I should clear my Premium Bonds and maybe swap for income bonds or alternatively pay them into a higher interest paying account

Edit 2: I’ve scheduled withdrawal for Premium Bonds and will be moving them to TSB, probably. I will also be moving money for my phone savings to a Regular Saver w/ Coventry BS

Edit 3: Opened account w/ Coventry BS and will be using that for saving for my phone :slight_smile: will be increasing the monthly payment by double since I might as well :wink:

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This is one instance of money management that I stopped caring about a long time ago. It’s insignificant and not worth the time for the reward. Instead I move money into investments. Money that’s not in investments or specific savings accounts is allocated as such that it was never meant to make money.

I get some pennies from starling for example, but it makes zero difference to my budget. Its just not worth it to me personally.

However I have found one way to optimise my finances its to put in place psychological barriers to my money. Be it a time delay to access, penalty for withdrawal or other such incentive to keep the money there, its minor but actually helps separate that money from current account money.

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I personally have enough to make an extra hundred or two in interest yearly and as I have 25k student debt currently any extra pennies are nice, espectially if they require no work at all once initally set up :slight_smile:

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True. I shall wait for your post about it. As I generally push those sums of money into accounts generating much higher interest without needing to move the money around. So if there’s an option that can be automated away perhaps it’s worth a look

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I have to admit, I genuinely couldn’t be arsed to move money around different accounts just to make pennies in interest. For me also, the effort in setting all that up just isn’t worth it.

At the end of the day, outside of investments, of which I have absolutely none, no stocks or shares or anything, there’s just bog all interest worth seeking. I made £175 over the last year on a CASS to RBS. That’s far more than any interest I’d have made switching money all over the place just to bag a few pennies here and there.

Starling in my view, might as well just drop their monthly interest payment. I earned precisely 11 pence on an average balance of around £3k for July. Absolutely bloody pointless.

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With current interest rates being down the toilet, we have done very much the same.
My good lady and myself have most of our savings being bounced around numerous current accounts (to meet the pay in requirements) to maximise every penny we can make.

As @Recchan has said, in these times, every penny you can make is a bonus :grin:

I just checked our Lloyds joint account. For the month of July, we earned £5.37 in current account interest. So I guess we’re still making about £60 a year out of Lloyds.

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Will update further as I get my login details etc through the post

My substantive savings funds are in Cynergy and Secure Trust ISA accounts - found them at the right time. Shan’t mess around with them.

On current account interest, I’ve drastically reduced my (primary) Starling balance and deposited the available into NS&I income bonds now that they’ve been instructed to issue at a market-leading rate. Not huge bucks but as good as I can find right now.

Starling does the donkey work that it’s supposed to do.

Never been a fan of CASS bribes or the gymnastics required to grab a few quid, a sentiment shared by some here, it seems. Back in the day, I did it because it felt like I was beating the system and being financially slick. Not really…

There is that temptation to piss around with marginal sums, because, like everyone here, I’ve an interest in what’s going on in Fintech. But I’m finding that urge increasingly easy to resist.

You could also include cashback credit cards to maximise free money on what you would be spending, that would be getting into serious calculations on how to move all the money around though :laughing:.

34uwpr

Good luck.

I tend to think of money as partly strategic, partly tactical. As long as the strategic stuff is done - pensions, long-term savings, spending less than you earn on a month-to-month basis, paying off debts - I guess it’s fine to play around a bit with the tactical stuff like chasing CASS sweeteners, changing shopping habits, negotiating lower payments etc.

I can definitely see how the CASS game might appeal to some people, but I don’t have the energy for it myself. Instead, I’ve decided to start index fund investing from the end of this month. I want to throw spare money into shares, barely look at them for 30 years, and then retire with a decent backup fund (because pensions will be pitiful). Other than that, I’m really appreciating the joy of keeping my banking simple.

Update: Swapping from Starling to Barlays Blue Rewards. Got a Sainsbury’s Credit Card to optimise my mum’s shopping (she will give me cash and I bag the points)

I’ve been thinking about the shopping credit card and wonder if I’d make more points over getting 1% cash back instead with other credit cards?

What’s the conversion you’re getting?

I don’t pay for any household bills (sainsbury’s shopping incl) and I currently have (credit wise):

  • Aqua Rewards
  • BA AmEx Blue (1 avios/pound)

So the bonus that you get for the first some weeks will make it make sense to me at least in the short term

I will probably be tempted to swap my BA AmEx to an Everyday Platinum Cashback card though, I don’t really see the benefit of AmEx Blue as the taxes often work out as costly as the travel from what I’ve read online. I don’t really get benefit from the dual voucher as I don’t have an SO anymore either…

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Hm seems to be 1p per 2 points which is just the same as 1% cashback except the cashback is more flexible.

It’s a good option though. For me I think it’s still between Amex and a 1% cashback cars for my own optimisation

Rewards

Up to 7,500 bonus Nectar points in your first two months
Collect 750 bonus points each time you spend £35 or more on Sainsbury’s shopping with your credit card, up to ten times in your first 2 months, that’s 7,500 points. ††

I’m not eligible for an AmEx introductory offer as I’m a cardholder already, so this is a really big draw for me as my mother does all our shopping @ Sainsbury’s and I will max this out very quickly!