where is the best place to save £5000 for 1 year (which I wont be touching) ?

maz_student

Hello everyone, this is my first post :A
The reason why Im saving my money is so that I can get onto the property ladder ASAP

I used to have a high interest deposit bond with HSBC (I set aside £5000 for 1 year and got about £200 interest). However, £200 is hardly anything. What bank offers a High-interest Deposit Bond with the highest interest?

I have an ISA account... and I will most probably combine the money from my ISA account and add it to the £5000 which I am planning on setting aside for the Deposit Bond (because hopefully the Interest Rate for the Deposit Bond will increase if I set aside even more money).

opinions4u

Have you funded your ISA this tax year (since 6th April) ?

maz_student

no (stupidly!)

Darth_Calculus

For fixed rate savings, ICICI offer a one year fixed rate savings account at 7.2% (5.76% net). On £5,000, that would be £288.

I would opt for the fixed rate ISA first, since you can get better than 5.76% with an ISA, and the rest into a fixed rate bond.

People have had mixed levels of customer service with ICICI, but in terms of rate, theirs is the best one year FRB on offer at the moment (AFAIK).

DC

Speculator

for fixed rate ISAs, see

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

maz_student

haha wow, so many responses in such a small amount of time! :T

Darth_Calculus wrote: »

For fixed rate savings, ICICI offer a one year fixed rate savings account at 7.2% (5.76% net). On £5,000, that would be £288.

I would opt for the fixed rate ISA first, since you can get better than 5.76% with an ISA, and the rest into a fixed rate bond.

People have had mixed levels of customer service with ICICI, but in terms of rate, theirs is the best one year FRB on offer at the moment (AFAIK).

DC

I apologise in advance for asking these questions. The reason is because I dont really know much about finance.

• Wasnt there a problem with the ICICI bank a while ago?
  
  
• Should I be too concerned about customer service? Because Im not going to do anything. My money is just going to sit there for one year, then afterwards I will be taking it out...

Speculator wrote: »

for fixed rate ISAs, see

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

Thanks for this link, Speculator. Greatly appreciated!

freddysmith

maz_student wrote: »

I used to have a high interest deposit bond with HSBC (I set aside £5000 for 1 year and got about £200 interest). However, £200 is hardly anything. What bank offers a High-interest Deposit Bond with the highest interest?

I think you will struggle to get anything above £300 interest (net) with £5000 in the current climate.
You sound a bit disapointed with £200 (4%) is £300 going to be enough?

maz_student

Sorry to give the impression of being greedy! I wasnt disappointed with the £200. I mean, its better than nothing. A couple of years ago I remember keeping all my money in just one Current Account and getting really low interest (something like 20p a month).

I just want to get as much interest as I can because Im trying to save up so that I can eventually put the deposit onto a house. I just dont know where the good deals are because Im new to all this finance stuff. I want to be wise with my money. And, yes, £300 is better than £200 and I cant argue with that :-)

maryotuam

We have recently put some savings into ICICI. without any problems.

freddysmith

maz_student wrote: »

I want to be wise with my money. And, yes, £300 is better than £200 and I cant argue with that :-)

Thats a 50% increase just for asking the question :T

http://www.thisismoney.co.uk/saving
http://www.moneysupermarket.com/money/

also good sites to get some backround on rates

tradetime

Your username suggests you are a student, if you are not a tax payer and not likely to become one soon, and your plan is to use this money in the near future this should be taken into consideration when choosing an account by rate. Normally an ISA is a good idea because it gets money in and allows you to build it up since there is a yearly limit on how much you can put in your ISA, but if you plan to spend it all, say on a house deposit, then building up an ISA is less of an issue and the pure return should be primary.

Also I don't think the person who questioned your disappointment was suggesting you were greedy, just that perhaps your expectations of what you could earn in interest were a little high. You are quite right to look for the best return on your money that you can get, risk relative of course.

And welcome to the world of money saving