Can you help with some savings advice, I seem to be going round in circles

katies_mum

Hi,

I`m hoping that once again you can come to my rescue, I`m due to receive approx £25K tomorrow payment from a pension (you helped me out on the pensions forum with this one) and want to put it somewhere nice and safe for 12 months or so, I don`t need instant access.

I recently transferred money from Egg to B & B so can`t put it there as it will take me over £35000. Am really not sure about the First Save and ICICI -
1 year type bonds as I don`t know how safe the money will be should anything happen as they are Bank of Nigeria etc., but their rates are good. I have looked at Anglo Irish Bank at 7.05% for 1 year but am not sure about the Irish Deposit Protection Scheme / UK Scheme and which would apply should there be a problem.
Also looked at Cheshire 6.8% and Heritable 6.85% but rates are lower.
I`m going round in circles as I don`t think I understand enough about the banks that are not UK based.
Please can anyone offer any info / advice / comments.
Many thanks as always.

kostigovs

Without double-checking I think all of the names you have mentioned are FSA registered albeit like the Post Office the Anglo Irish Bank cite the Irish deposit Scheme as the first port of call should things go belly up.

I'm like you and find myself going round in ever decreasing circles when trying to find what you hope is a safe haven. However I do think that you have mentioned a fair selection of names from which to chose.

Sometimes it's not possible to pick a name that you are au fait with who also happens to be offering the best interest rates(if that is what you are after)

The Alliance and Leicester is offering 1-yr fixed rate of 7.5%-maximum £10K-if you are over 50

katies_mum

Thanks, for the reply. Didn`t know about Alliance and Leicester one. We bank with them so would be easy.

katies_mum

Hi,

Am I looking in the wrong place as I can`t seem to find it.

kostigovs

katies_mum wrote: »

Hi,

Am I looking in the wrong place as I can`t seem to find it.

Sorry I only gave you half a story. To apply you must open a premier 50 account which opens the door to the fixed rate a/c. Go to their website and type in premier 50 in their search window

Primrose

As you appear to be of pensionable age and are not looking for immediate access, SAGA and Birmingham Midshires are both offering One Year Savings Bonds with a reasonable interest rate - around 6.5% I think, when I last checked.

katies_mum

Thanks, found it on A & L website, did look at this a whle ago but have to pay £10 a month for the current account! think you need the current account to get the bond.

I am 50 (just taking pension from previous job early as figures were good).

Still looking, just a bit dubious about the banks with the funny names!

kostigovs

Yes you do have to pay £10 per month but they pay you a fixed rate of 8.5% per annum on the account up to a max of £2500. You can deposit £2500 immediately giving a gross interest of £212.50 of which £120 is reclaimed (12 x £10). Net it works out around 2% per annum but it gives you access to the 7.5% account.

For the £10 you are given annual travel insurance up to aged 79 and other financial and personal heath benefits

katies_mum

Thanks for the info. I`m still dithering. I`ve got one of the other A & L current accounts so can put it in the account linked to that and at least I`ll get 4.5% whilst I make up my mind. The account I have also pays 8.5% upto £2500.

kostigovs

heath?????