What savings account for £6k per year, NOT and ISA
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talksalot81
Posts: 1,227 Forumite
Hi there,
I wonder if anyone can suggest to me what accounts to look at. I have an ISA already but will go way above my limit this year. What is the next best savings account to look at for about £6k? Im not too concerned about it being an easy access account or anything like that, basically the money will be put in there and forgotten about until a rainy day.
Many thanks
Adam
I wonder if anyone can suggest to me what accounts to look at. I have an ISA already but will go way above my limit this year. What is the next best savings account to look at for about £6k? Im not too concerned about it being an easy access account or anything like that, basically the money will be put in there and forgotten about until a rainy day.
Many thanks
Adam
2 + 2 = 4
except for the general public when it can mean whatever they want it to.
except for the general public when it can mean whatever they want it to.
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Comments
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If you're a tax payer and can afford to lock the money away for 5 years you'd be hard pressed to beat the Community Investment Tax Relief Account (CITRA) offered by Charity Bank, which would provide 5% as tax relief plus 2% gross. The link is http://www.charitybank.org/2005/savings-and-deposits/just-savings/guide.html#Anchor-Community-172090
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If you receive tax credits then a tax free National Savings Index Linked Certificate is the way to go. Income from this will not count to reduce tax credits - a loss of 37p in the pound as well as 20 (or 40)% tax if saved in any other way.still raining0
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Derbyshire BS Regular Saver 5.85% - £10-£1000 p.m.0
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Thanks guys.... I cant really afford to put money away for as long as 5 years, just in case!
No tax credits for me, so cant go that way.
Grumbler,
Is that derbyshire account looks rather good for me, my only concern is that I am located in Northern Ireland so wont have a branch anyway local. I dont see anything as yet suggesting that you cant do that regular savers account by mail, however they do have a specified postal account which makes me wonder. So do you know if you can do the regular savers account by mail correspondance alone?
Thanks!
Adam2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
I don't have any accounts with them and don't know ...
It looks like they don't have any online service. I guess that you can apply by post and then operate account by phone and transfer money into it directly from your main bank (by Standing Order for example).0 -
talksalot81 wrote:Thanks guys.... I cant really afford to put money away for as long as 5 years, just in case!
No tax credits for me, so cant go that way.
Grumbler,
Is that derbyshire account looks rather good for me, my only concern is that I am located in Northern Ireland so wont have a branch anyway local. I dont see anything as yet suggesting that you cant do that regular savers account by mail, however they do have a specified postal account which makes me wonder. So do you know if you can do the regular savers account by mail correspondance alone?
Thanks!
Adam
Hi, I hope you don't mind me answering your question. I have two of Derbyshire BS' regular savings accounts. I don't live anywhere near a Derbyshire branch, but I was able to open both accounts via the post. If you phone their main number 08456 004 005 you can request an application pack. Fill in the application form and provide them with the ID they require, (I think I used two bank statements from two different banking institutions) and include a cheque for your first deposit. If all checks out ok, they will send you your passbook.
At the moment they have an offer on that allows you to open 2 of their regular savings accounts (offer expires 31st July 2005).
After your account(s) are open you can setup a monthly standing order so that you never miss a payment. The Derbyshire allow 1 missed payment and 1 withdrawal during the account year 1 Aug - 31 Jul. If any more are made you will lose out on your 2.70% bonus interest rate. Interest is credited on July 31 each year.Please call me 'Kazza'.0 -
I've done the same as Kazaa. Opened two accounts. I went for the full amount £1,000 in both accounts. You can double check, but I think you can vary the amounts paid in. So put in your large amounts at the beginning and then so long as you put in £10 per month afterwards, you will have the maximum amount of your cash in there for the longest period of time. No problems with a couple pieces of ID sent through the post and was up and running very quickly (around 10 days if my memory serves me correctly.)0
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Superb thanks guys! The derbyshire people replied by email with exactly the same information.
In honesty, I simply cannot put away more than £1k a month, is it worth opening two accounts all the same and simply operating it on a minimal basis for future use, or is this just a load of hassle that isnt worth it?
Thanks
Adam2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
talksalot81 wrote:Superb thanks guys! The derbyshire people replied by email with exactly the same information.
In honesty, I simply cannot put away more than £1k a month, is it worth opening two accounts all the same and simply operating it on a minimal basis for future use, or is this just a load of hassle that isnt worth it?
Thanks
Adam
I think that opening two Derbyshire regular savings accounts is a good idea. As you are planning on depositing £1K per month, you could split it so that £500 goes into each regular saver account. This will give you more flexibility i.e you'll be allowed to make one withdrawal from each account during the account year and still qualify for the 2.70% bonus. If you only had one regular saver, you would be limited to one withdrawal per account year, which isn't as flexible.
Opening two accounts now is the same as opening one. There isn't really any extra hassle. Setting up a standing order from your current account to fund both regular savers is a sensible thing to do. That way you won't miss a monthly payment that forfeits Derbyshire's bonus interest rate.Please call me 'Kazza'.0
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