Splitting up savings

‘Though small was your allowance, you saved a little store; and those who save a little shall get a plenty more’ – William Makepeace Thackeray (19th Century novelist)

It’s been a few months since I last wrote about savings, and am pleased to say my savings are still growing, though now I’ve moved on to a different purpose.

Now I’m saving to pay for house move fees!


I hope you’re feeling just as satisfied with how well you’re managing to set aside money every month, whether it’s a little or a lot.

Today’s post is just a quick update on how I’m managing my savings right now…

In this article I described ISAs and pointed out that I’d probably set one up this year. Well, I haven’t!

The Tesco Internet Saver I opened in January 2015 had done its job, earning me higher interest than most instant access saving accounts. The bonus had been paid and the annual interest rate dropped drastically.

Better accounts are now out there.

So I got onto Money Saving Expert (as usual!) and checked out the best rates going.

I knew I wanted the best returns I could get, but without paying monthly fees. I also didn’t want to lock all my money away for a long time, just in case of an unseen emergency.

I discovered that the RCI Bank offers a relatively amazing 1.45% AER interest through their Freedom Savings account, so that was one contender. Plus, it’s easy access and online management. The downside – if the bank did go under, getting the money back could be trickier as it’s a French bank (owned by Renault). They still cover up to €100,000 though!

I also saw that Charter Savings Bank – a British establishment, covered up to £75,000 as standard by the FSCS – offered a good rate of 1.70% interest. This, however, is on money in the 120-day notice account, so if I needed to withdraw it, I’d need to allow four months to receive the cash. Not ideal.

Then I had a EUREKA sort of moment.

Why not split my savings?

I’ve now got a few thousand £££s in the Charter Savings Bank, earning a bit more interest, and a little less in the RCI Bank earning a little less interest. Ultimately, when both interests are added after a year (grab a calculator!), this still comes to a decent amount even adding nothing extra in.

So always bear in mind it IS possible to split your cash, as long as you’re well organised and willing to keep a close eye on your finances.

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