Time to Spring Clean your finances?

[nannynick]

Today I have decided to give my finances a Spring Clean.

I had noticed that I was getting a very low rate on my small (under £2000) of savings. So investigated and found that over time my savings account's interest rate had dropped... to 1% APR. So I'm now in the process of moving it to another provider (Skipton are offering 2.76%) as current provider is giving new customers deals but not existing customers.

Looked at my Cash ISA and noticed that I'm not paying that much in each month, so may need to work out how much more I can pay in this financial year. Maybe worth looking for a better rate on that - anyone had experience of moving a Cash ISA between providers?

Given the low interest rates for savers at the moment I am wondering what is best to do with savings... maybe paying off some of my mortgage would be sensible. Trouble is, once pay bits off I can't get that money back... whereas in a savings account I can get hold of it - need a rainy day supply. This past year I've had quite a few rainy days (needed a new car, needed major plumbing work on my home, washing machine repair - though that didn't cost much).

Are you having a financial spring clean? Have you found any good places to put your rainy day savings?

I wish I had some savings!

My cash is in a 3% instant access account (well, a couple of them) which includes a one-year bonus to get it to the 3%. This year will expire pretty soon, and I'll be moving it.

ISA's are easy to move - you just have to go through the right procedure to move them, not take the cash out.
It might be worth calling your current provider and seeing what the best rate they offer is, I have done this in the past and got as good a rate as I would have got by moving it.

I also have a couple of monthly saving things, you have to save something each month (between £25-£250) and the rates are 6% on one and 8% on the other, these are nearly due for expiry so will need moving but if you can find something like that with good rates it is worth doing. Rates are probably lower now than a year ago but most of the big banks do them.

Personally I would want a cash buffer before repaying on the mortgage. 3-6 months salary is often a good idea.

Last year I had one of those regular saver accounts. May look at getting it again, currently being offered at 4% (HSBC).

For several years now I have had a cash buffer of 3 months salary. That is what I'm putting in instant savings, as it's getting no interest at all in my current account.

Good to hear that moving an ISA isn't too much trouble. Good idea about asking current provider... would have thought they would prefer to keep the custom than to have me move the money.

have a look on [http://www.moneysavingexpert.com/banking/ MSE]]

MSE opps

Thanks. Looks like MSE is suggesting making sure the full cashISA allowance is used, before looking at long term savings. So I'd better start working out how much I can pay in to my cashISA this financial year (pity the electronic banking system won't just tell me the figure - bet the in branch computer would!)