What else is there apart from high interest accounts?

botkin
botkin Posts: 9 Forumite
in Savings & investments
For those wishing to beat inflation and have easy access to their cash, what other options are there other than high interest current accounts?

I already use Ratesetter and Funding Circle.

My investment horizon is quite short-term. I might want to withdraw the money at any time, subject to 1 month's notice. This pretty much rules shares out, I believe.

Comments

  • Your_Hero
    Your_Hero Posts: 883 Forumite
    Unfortunately, that's about all there is for short term accounts as you really do limit yourself.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • SomeUser
    SomeUser Posts: 197 Forumite
    I think it depends on how likely the "might" is with regards to investments and whether it's all or some. You could consider gilts/bonds, but there's risk that prices will fall.

    There's also the amount - TSB gives 5% on balances up to £2k and there are other current accounts. If you already use P2P lending you could max out the interest paying current accounts and then put any excess in a stocks and shares ISA in lower risk investments (such as investment grade bonds and gilts) if you think the current account amounts cover enough for the shortest term withdrawals
  • planteria
    planteria Posts: 5,321 Forumite
    First Anniversary Combo Breaker First Post
    yes, combination of best cash accounts (savings, including regular savers, and also interesting-generating current accounts), peer-to-peer and potentially Investing for the longer-term alongside.
  • sparrer
    sparrer Posts: 7,547 Forumite
    First Post Combo Breaker First Anniversary I've been Money Tipped!
    All my 'savings' are in the higher interest current accounts with a small amount in P2P as I'm just testing it out at the moment. I'm not willing to take much risk with my money and have made a very healthy amount of interest over the last two years, so won't be looking elsewhere until other banks/ISA's catch up.
  • jimjames
    jimjames Posts: 17,596 Forumite
    Photogenic Name Dropper First Anniversary First Post
    botkin wrote: »
    For those wishing to beat inflation and have easy access to their cash, what other options are there other than high interest current accounts?

    I already use Ratesetter and Funding Circle.

    My investment horizon is quite short-term. I might want to withdraw the money at any time, subject to 1 month's notice. This pretty much rules shares out, I believe.

    Unless you need ALL your money short term eg for house purchase then investing some is still possible.

    Just because it is invested doesn't mean you can't access it. In some ways it is faster and easier to access than a notice account as you can have the sale proceeds in your account within a week.
    Remember the saying: if it looks too good to be true it almost certainly is.
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