Best place to save £30k Long term.

ATF101

Hi,

I am trying to find a safe, high interest savings A/C for £30k. As I have already maximised on my ISA's for this year and legislated for next I am looking at long term options 3-5 years possibly.

Any ideas appreciated.

Baldur

If you are sure that you will not need access to your funds, you could look at 2/3 year fixed rate accounts, e.g. http://www.moneyfacts.co.uk/savings/bestbuys/long-term-fixed-rate-bonds.aspx

Otherwise look for accounts which offer some sort of rate guarantee (e.g. 0.5% over BoE base rate until a specified future date) - see account comparisons at:
http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx
http://www.moneymadeclear.fsa.gov.uk/tools/compare_products.html
http://www.moneysupermarket.com/savings/

ATF101

Thanks Baldur.

Your fast response and pointers much appreciated.

ATF101

In looking into some of the option I notice an Anglo Irish 2 Year Fixed Bond with a reasonable rate, the question is, is this a safe home for savings.

Baldur

ATF101 wrote: »

In looking into some of the option I notice an Anglo Irish 2 Year Fixed Bond with a reasonable rate, the question is, is this a safe home for savings.

For depositor protection info, see http://www.angloirishbank.co.uk/Personal_Savings/FAQ/FAQ_for_Fixed_Rate_Bond/#1
and http://www.financialregulator.ie/frame_main.asp?pg=%2Fnews%2Fnw_article.asp%3Fid%3D405&nv=%2Fnews%2Fnw_nav.asp

ATF101

Thank you Baldur.

Jess100_2

ICICI's online fixed term deposit is currently 7.0% for 36 months and from personal experience, their customer service is excellent. The parent company is in India, but according to Martin you would be banking with the UK subsidiary so you have exactly the same protection as in any other UK bank, i.e. anything up to £50k is absolutely guaranteed.

I highly recommend!

ATF101

Jess100 wrote: »

ICICI's online fixed term deposit is currently 7.0% for 36 months and from personal experience, their customer service is excellent. The parent company is in India, but according to Martin you would be banking with the UK subsidiary so you have exactly the same protection as in any other UK bank, i.e. anything up to £50k is absolutely guaranteed.

I highly recommend!

Cheers for that.

While its very tempting I am very nervous on 'non UK' institutions. Perhaps its this Icelandic business that makes me overly cautious.

mickW_2

had a load of grief with Anglo Irish. Wanted to close account with £30k 7 day notice they insisited in cheque by post despite having a linked bank account. 2 weeks on nothing received. Kept phoning they kept promising to ring back.Spent a fortune on calls. Shocking service. Eventually e mailed them saying Id informed the police of possible stolen cheque via post. Immediately they phoned to say they has never sent the cheque due to an admin error. Terrible experience having sleepless nights wondering where the money had gone. After 3 weeks got the cheque. Am sticking to English banks now who are full members of the FSA and not a foreign bank with the passport membership. What happens if the Irish banks go to the wall and their governmenr says they cant pay?

isofa

With ICICI being recently downgraded to BBB- by Fitch, and it disappearing out of many of the best buy tables, I think you'd be right to be cautious, there are several discussions on this on the forum, and some detail from Martin regarding ICICI, but you are protected to the first 50K as it's a UK Bank in this country.

I certainly wouldn't say ICICI have an excellent customer service record, a quick search through these forums with unearth many unhappy customers.

Personally they aren't for me.

ATF101

Thanks to mikeW and Isofa.

With rates starting to fall and so much uncertainty over some of the higher rate options I think I shall go with the Coventry Poppy Bond, 6.25% fixed to 31-12-2009.