When Do I open the Accounts

sweet_charriot

Sorry if I am expecting Members to have a crystal ball but here is my question.
At the end of September I will have a lump sum to invest. I am aware of the maximum safe amonts to invest and so will be breaking this down to 3 or 4 investments.These I do not want to be long term investments and so at present am looking at savings accounts and ISA. My money will be paid into my Bank Account where I need to move it from as quickly as possible due to interest rates. Now do I leave it until the last minute to sort out opening savings accounts or If I opened them now with the minimum deposit would I be riskling missing better deals in 7 weeks time. One last part my Wife is a none Tax payer how much can she have in her name and I appreciate the risks of her running off with it all.:rotfl:

JimmyTheWig

Open an ISA in your name and one in your wifes name.
All other accounts solely in your wifes name.
Even if it's a huge lump sum which then means she will be paying tax on the interest it is still likely to be less tax than it would attract in your name.

No problem in opening the accounts now, as long as you have enough to cover the minimum balances to open them. You can't loose out this way, as they will be variable rate accounts so if rates change you would get the new rate anyway.
The only problem would be if a new account came along that was better than the one you've chosen. Well in that case it is up to you whether you open the new account at the time or not. You haven't lost anything (apart from your time in doing so) by opening the account now that you won't use.

sweet_charriot

Thanks for that just to throw more light on the issue I looked at a Bond with Northern Rock 7% interest. You can open it with as little as £1 but at any stage they can withdraw the offer and not accept further deposits. Know of any competitive companies who do not have this loop hole.?

runciblespoon

Fixed rate accounts like that usually only stay open for a few weeks (that's why the NR accounts are labelled 'issue 123' - it'll close and issue 124 will be along in a while). Personally I wouldn't bother opening one of these now because it'll most likely have closed before the cash arrives. But some accounts can still take payments in even if the account has closed to new members (I think the now-closed Skipton 6.5% account was like this). So it's just a case of reading the small print carefully - start with a best buy table from Moneyfacts website and work down it, or read the threads on this board.

An alternative strategy would be to open the best instant-access savings account at the bank which holds your current account. You should be able to do instant transfers in and out. Then when you have the cash you can see who has the best fixed rate account(s) and apply. If you give a cheque with your application you might lose a bit of interest while it sits in your current account waiting to clear, but you're more likely to be able to put the full amount into the fixed rate account.