I think I must be the poorest person here. I have a token £1 in my Nationwide Savings Account - that’s all I can afford! 
Still not better.
The effective rate over the term of the Nationwide regular saver is 3.52%.
You are better off leaving it in Starling.
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You’re only looking at the interest gained on the money in the Regular Saver. If you are looking at the interest gained on the £2,400 as a whole, then mathematically the bext way to maximize interest is to stick the whole thing in your Starling Saver earning 4% today, and then set a standing order to transfer the maximum £200 into your Nationwide Regular Saver each month. I guarantee at the end of the year you’ll have more money total that way than if you had left all in your Starling Saver the whole year.
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How does taking £200 a month from an account paying 4% over a year and paying it into an account that pays 3.52% over a year leave me with more money?
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I currently have regukar savers at all my banks and buukding societies. Santander and HSBC at 5%, First Direct at 7%, and 8% at Yorkshire Building Society. Gives me more interest than if I just left them in the 4.35% easy access account.
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Easy access at Yorkshire Building Society. Money comes out the next day rather than instanstly.
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Nationwide doesn’t pay 3.52%; it pays 6.50%.
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The effective rate is 3.52% over the 12 month term.
£2400 in, £2484.50 out. 3.52%
Because the regular saver pays more interest on that £200 that you’re moving across each month. The average interest earned over the year may be less but the daily interest on what you have moved to it is more than the Starling account.
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But you don’t early daily interest, they pay it once yearly? There’s no compounding.
Yes, you do, and it compounds.
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No account in existence pays daily interest. All accounts calculate the interest daily, but they only pay it annually, or in some cases monthly.
This shows the regular saver as only early £44.49 for the year but Nationwide’s site says you would earn £84.50?
Sorry if this is all coming across wrong, I am genuinely trying to understand and not saying you guys are wrong.
That’s likely because they calculate the interest earned daily, whereas my math was based on interest being calculated monthly (much simpler to do in a quick spreadsheet). But since I use the same math over all three methods it shouldn’t matter. But at its most simple level, by sticking the lump sum in Starling today and then moving £200 over to the higher-interest regular save each month, you are maximizing the interest earned by each pound you have, by putting as much as possible in the 6.5% account, and keeping the rest in a 4% account.
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Money Saving Expert explains the drip feeding technique and has a calculator to show how much you’d earn from both accounts:
https://www.moneysavingexpert.com/savings/regular-savings-calculator/
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Thanks. I guess I was missing something.
Nationwide are fine, few issues but I’m missing the excitement about opening an account with them. Did I miss something or is this the new RBS on here?
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I only opened an account for the switch bonus.
1% cashback for a year is nice too.
Small sample size but I have contacted them twice since opening the account and they were excellent both times.