Savings interest on larger balances?

Mr.Boy · 10 October 2016 at 1:14PM

All the MSE "top savings" accounts seem to be limited on a balance of £2,500 - £20,000.

I have £200k (from an inheritance) which I expect to be investing in a house in the next few months. So property and shares are not sensible options.

Is there anywhere I can put this sum to earn interest on the whole balance? My 1-2-3 account is maxed out and while I could get a 2nd for the wife it requires a bit of mucking about with DDs and so on.

Where can I compare interest rates for larger balances? Even after getting another 1-2-3 and perhaps maxing out cash ISAs I'd have £100k sitting there doing absolutely nothing.

bowlhead99 · 10 October 2016 at 1:21PM

National Savings & Investments monthly interest bonds - pays 1% and government backed.

For comparison tables see the financial comparison sites including MSE articles, their owner moneysupermarket, and all their rivals you see advertised on telly (meercats, mad operatic guy etc). Take care not to confuse safe bank accounts with peer-to-peer lending which carries more risk.

badger09 · 10 October 2016 at 1:54PM

If you envisage using the whole £200k for a house purchase within the next few months, then it isn't worth faffing about with multiple accounts for the few £ you could earn.

bowlhead99's suggestion is the sensible (and unusually brief:p) answer.

Mr.Boy · 10 October 2016 at 2:05PM

Thanks you two. Yeah it's not worth a lot of hassle but at 1% that's £166 a month which is neither to be sniffed at... could easily end up being £500-1000 depending on timescales. So worth a bit of faff but not messing about with loads of little accounts in my view.

YorkshireBoy · 10 October 2016 at 2:27PM

d000hg wrote: »

Thanks you two. Yeah it's not worth a lot of hassle but at 1% that's £166 a month which is neither to be sniffed at... could easily end up being £500-1000 depending on timescales. So worth a bit of faff but not messing about with loads of little accounts in my view.

Gross, yes. But you will possibly (probably?) have some tax to pay on that.

Had Santander not cut their rates from next month I might have suggested 2 more 123 accounts (for approx. £100 a month) and a punt on Premium Bonds with some of the rest?

Mr.Boy · 10 October 2016 at 2:38PM

You get £1000 of tax-free savings interest annually (right?) so I think I'd be doing well to start getting taxed. I do a SATR so could reclaim pre-taxed interest.

polymaff · 10 October 2016 at 3:11PM

d000hg wrote: »

You get £1000 of tax-free savings interest annually (right?) so I think I'd be doing well to start getting taxed. I do a SATR so could reclaim pre-taxed interest.

Somewhere between 0 and £6,000, actually - depending upon your circumstances - and there is no pre-taxed savings interest now.

Like bowlhead suggests (?), I've gone down the NS&I Income Bond path recently - particularly to accumulate multiple maturities. Shoved some of it into Premium Bonds and got £75 this month :T

bigfreddiel · 10 October 2016 at 8:33PM

We got £100 winnings from pbs this month

[Deleted User] · 11 October 2016 at 7:42AM

Hmmm... Wonder if PBs are a good home for £30k of stoozed funds?

polymaff · 11 October 2016 at 9:11AM

jeepjunkie wrote: »

Hmmm... Wonder if PBs are a good home for £30k of stoozed funds?

Premium Bonds can be treated as an investment, not a gamble. The recent non-gamble rate is 1.14% which, to a 40% tax-payer is the equivalent of 1.9%.

northbob · 11 October 2016 at 2:34PM

I would agree if you have that much cash and need flexibility then a max 50k on PBs should return close to 1% on average. With a remote but possible bigger upside which is OK as it sounds like if the rest gets 1% elsewhere you won't be too down if the PBs don't return much.

Savings interest on larger balances?

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