Chasing the Highest Interest Rate

Written by Karen Bryan

highest interest rateI just shunted our emergency fund to a different account to get another 0.1% in interest, i.e. another £1 in interest for every £1000 of savings. Sad but true. It only took five minutes, as the money was already sitting in a Santander eSaver Issue 4 which was paying 3.1%. However, I noticed that the Santander eSaver Issue 5 had increased the interest paid on that account from 3% to 3.2%, when I went to to log into my accounts this morning.

To cover my bases, I had opened a Santander eSaver Issue 5 when it came out in April 2012, just in case Santander started any of the usual jiggery pokery on the interest rates with different issues of the eSaver account. I’m glad I did this, as it meant there was no delay in transferring the emergency fund to the slightly higher rate.

Now, if it’d been a different bank offering 0.1% more in interest I probably wouldn’t have bothered to change accounts, but when it’s an internal transfer to an existing account, I will go for a bit of extra interest.

Do you make the most of  your money by chasing extra interest or do you think it’s a waste of time?

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