Sold car - where to save?

BMcN

I have just sold my car and have 10k to put in savings.

I currently have a mini cash ISA with the bank of scotland paying only 3.04% (not actually put anything in it due to the poor interest.

I also have a Hisave account with ICICI (opened due to a previous article on here). I have around 3k in that account and the interest rate is 6.19% I think.

Now, I do not know how long the money will be in savings as I am as yet undecided about buying a new car, so it could be a few months or few years. I probably won't be paying a regular amount in and I may want to remove some of the savings with no penalty. I will probably be keeping at least 3k savings regardless.

What do you suggest? Many thanks.

bryanb

Transfer the ISA to a better paying one, click the savings tab at the top of this page to find one.

downs523

transfer isa, or close it if theres nothing in it, open new one fill it up, then rest in ur other savings account with icici

BMcN

One that I think suits me, is ICESAVE. What do you all think:

http://www.moneyfacts.co.uk/searches/savingdetails.aspx?detailid=SAVINGS_SEARCH&histno=SAVINGS001470801Monthly

How do I go about transferring? Presumably I need to close my one first?

JEFFWT

BMcN wrote: »

How do I go about transferring? Presumably I need to close my one first?

No, don't close it or you'll not be able to put it into a new ISA!
What you do is open your new ISA and tell them that you want to move the money from your old ISA to the new one - it's called 'transfer in'.
Not all banks/building societies allow transfer in's but Icesave do.
If you give them details of your current ISA they should be able to arrange the transfer on your behalf - check their web site for details.

HTH,

Jeff

natman

Hi BMcN,

Yeah I agree with JEFFWT.............
First things 1st your current ISA is poo..even an ok ISA at the minute is paying 5.5%...............Follow this thread for best ISA, Its an old thread but always gets updated - http://forums.moneysavingexpert.com/....html?t=401374

I too have an ICICI Account, and have been pretty happy - perhaps check out their year bonds - 7.2% Interest
The way i see it, you want to save some money but want to be able to get hold of some quick.
As a percentage, work out what you would like to get hold of quite quick -
you mention you have 10k + 3k is that correct?? so lets say you want to get hold of 3K
Transfer your ISA+Fill it up with this years dosh so thats £3600
ICICI - Could be your easier access account - get hold of your money in three/four days £3000
Open a year bond £5,000 -£7000 also check out KAUPTHING EDGE FOR THEIR HIGH INTEREST Rate accounts.

are you planning to get another car?
I just threw some figures at you there, perhaps use a pyramid system -
top layer of pyramid - easy access to funds - £3000
middle layer -ok access to funds - £4000
bottom layer - need to give notice for funds - £6000
I use this method, as it works for me - have a play with your figures!
Good luck!!

BMcN

Thanks for the advice, I do not know if I am getting a new car. I am going to try without and see how it goes.

I would like to I will have a read through the ISA thread and look at the other accounts, I would rather sacrifice a little interest for easier access and flexibility with my money.

jimmy111

Clearly some fans of ICICI here. But there is an alternative view. I'd steer well clear of ICICI. My experiences (and it seems those of others) with ICICI indicates that their IT is poor and their so called "customer service" delivery is unhelpful (they don't listen or perhaps lack understanding and do not deliver promises). It's not worth the hassle for the marginally better rate they offer compared with their close competitors. I'll not put any more of my money their way!

baby_boomer

BMcN wrote: »

I have just sold my car and have 10k to put in savings.

Well done - you are part of a trend.

Mail link - Economic downturn drives traffic off roads

I'm pretty sure that your savings + interest will buy far more of a new car in 12 months time than now .

BMcN wrote: »

Thanks for the advice, I do not know if I am getting a new car. I am going to try without and see how it goes.

I've given up my car - although it helps to live in London. The savings have been huge and the inconvenience has been minimal.

If you know that you've going to give it a go for 12 months then fixed rate bonds are currently paying around 7% gross ( 5.6% net of basic rate tax) for 1 year if you are prepared to tie up your money.

This is a fantastic deal compared to 5% Bank base rates and might not last.

But use your £3.6K Cash ISA allowance first - the best fixed rate for that will be 6.5% or less, unfortunately, but it's a better return than the 5.6%% post tax on a FR Bond.

opinions4u

If you can't be bothered transferring your ISA, at least "upgrade" to their direct version that pays 5% !!

Online or phone access for that.