approx £70k to save, which account is best?

innovate

charlieboycat wrote:

Also important if you want to live off the interest - Cahoot has a monthly interest option, but AA does not (it is annual interest only).

You only get 5.15% though on the Cahoot monthly scheme

Locket_2

Caped_Avenger wrote:

Locket,

I'd echo what charlieboycat has said, but one thing you've said does raise an issue. you said you want to invest it "probably long term". Regardless of this, the most sensible thing you can do, in terms of interest, is to offset the money against your mortgage.

If you have a repayment mortgage that allows overpayments of that size, then you can do this as a lump sum. This is where the "probably" comes in.

Just how likely is it that you'll need access to it again? If you're on a capital repayment mortgage, it may not the easiest thing in the world to get the £10K back, although not impossible.

If it is quite likely you'll want to use the £10K, an offset would be easiest, since you've got the cash in a savings account, and can access it (almost) instantly. If you've got the right sort of offset.

The question is whether you can handle the temptation of being able to draw back against it!

Thanks for that. I have a reasonable amount in an ISA and hope to get another job fairly soon so am optimistic that I won't need to touch the 10K. :rotfl:
A lump off the mortgage it is, then! :T

charlieboycat

innovate wrote:

You only get 5.15% though on the Cahoot monthly scheme

Gross - agreed. But AER (to the extent you don't live off it) is still 5.25%. I think that as a monthly gross rate (for those who want to live off the interest) 5.15% is about as good as you get at the moment.