£40000 To save in Bradford and Bingley Online Saver??!!!?!

stoneroses89

Hello,
Im 26 years old and have been saving hard for about 12 years since my Paper round days!!
i currently hold about £40000 in a LLoyds bank Gold savings account however im earning less than a £100 a month interest which isnt great?is it??? plus the £12 a month charge for the account.
is it safe to switch it to BB Online savings at the moment?
surely at 6.51 id be getting a fair bit more????? i have already put £3600 in my ISA so any advice would be great thanks!!!

Steve_xx

I wouldn't put it all in B&B, certainly not more than about 33K worth. This is so that the interest earned in a year wont take you above the 35k protection limit.

Have you looked at ICICI Bank? They have a 1 year bond paying 7.2%.

Pollycat

I agree with Steve about the £35K limit.

You need to decide if you can lock up your money for a period (6 or 12 months or even longer) or if you want instant access and/or monthly interest.

I think you'd do well to read this:
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Stavros_3

If you put it all in the B & B you have the option of monthly or annual interest. The net rate is 5.21%, so on your figures that would give you around £2084 a year in interest.