Best mid term (18 Mth) no catches savings account? (£15k + £1k PM)

skap7309

Hi, i currently have a Sainsburys Bank 5.5% savings account and am looking to change for a better rate. My main concern is the speed at which the interest rate is being slashed at the moment so i am looking for an account that will be suitable for at least 18 months. Maybe a guaranteed 1% above base rate option or similar? Just a thought but overall i would like the highest interest going...

I currently have £15k and will be adding £1000 per calendar month. I have a maxed out ISA with A&L and a Halifax Regular Saver at 10% so these options are taken care of. I will be moving money regularly so withdrawal charges are not welcome
Any help would be greatly appreciated! :T

opinions4u

Egg 6.55%, IF 6.4% leap to mind.

But rates will get chipped away at, so do as you say and be prepared to keep an eye on that and move when appropriate.

Maybe 7% fixed (no access) for 3 months at Halifax would be a good short term plan.

opinions4u

The Egg looks good to me - the bonus is also variable, so keep an eye on it!

The Halifax one is worth the effort if you can give up the access for 3 month (not sure if you can or not). At the end of the 3 months, get it out fast unless they have something hot on offer! There is no penalty for withdrawal at the end of the term.

PJD

My choices (good or bad!?!?):

I've gone with 6 months with the Halifax fixed term, - it's 6% over the last 3 months, so only .5% lower than most other higher paying accounts.

I've also gone with A&L savings account, but you cannot move money out of there without losing all interest for the month. 6.6%.

I've just switched my ISA to Scottish Widows. 6.5%

I've lastly i've opened up a Tesco savings account (6.5%?)

Baldur

PJD wrote: »

.....I've also gone with A&L savings account, but you cannot move money out of there without losing all interest for the month. 6.6%.

No loss of interest if withdrawals are made in July, from memory?

skap7309

Baldur wrote: »

No loss of interest if withdrawals are made in July, from memory?

Yes, they have an amnesty month for withdrawals - need to keep on the ball though lol!

opinions4u

skap7309 wrote: »

What about the Birmingham Midshires at 6.52%? Is it any good? Its just there seems to be no introductory rate and would be handy to squirrel away cash for the 18 or so months?

Decent enough.

Couple of things to consider:

1) No rate cut made since 0.5% BofE cut - so potential to cut there (this applies to most accounts).

2) Interest isn't capitalised in the account - it has to be paid away. This makes it technically impossible to achieve the AER quoted (so your real rate is between 6.33% and 6.52% but never reaches 6.52%).

Like all accounts, if you open one, monitor the rate and be prepared to move if they cut too far!

redcar_2

PJD wrote: »

My choices (good or bad!?!?):

I've gone with 6 months with the Halifax fixed term, - it's 6% over the last 3 months, so only .5% lower than most other higher paying accounts.

I think you'll find its 6% over the whole term if you go for a 6 month term or 7% over the whole term if you go for 3 month term. Its not a changing rate during the term.

natman

HI,

I can get ya a fixed 12months for 6.5% -

A great rate of up to 6.50% Gross / AER
Rate includes a 1.5% bonus for 12 months when you open an account
Plus – open an Internet Saver between the 18th September & 12th November 2008 and receive up to 2,000 Clubcard points( worth between £20 - £80)
If you aint guessed it is Tesco's Internet Saver.
I just opened one.

Good luck

opinions4u

natman wrote: »

HI,

I can get ya a fixed 12months for 6.5% -

A great rate of up to 6.50% Gross / AER
Rate includes a 1.5% bonus for 12 months when you open an account
Plus – open an Internet Saver between the 18th September & 12th November 2008 and receive up to 2,000 Clubcard points( worth between £20 - £80)
If you aint guessed it is Tesco's Internet Saver.
I just opened one.

Good luck

The Tesco account looks good but it ain't fixed.

natman

OK, I will have another go -

ICICI Have a fixed 12 month term account offring 7.1% - but with all the foreign bank shannanighans..............

BIRMINGHAM MIDSHIRES have a
6 Month Fixed Rate Bond at 6.97%

Yorkshire Building society have - 6.5% bond fixed interest rate until 31 January 2010.

So there ya go, something must be apealing here!!!