Best Savings Account?

LoopyLil_2

Hi there,

Could anyone suggest which high street bank is the best for investing 25k redundancy payout for about 12 months?

Many thanks

Lil x

LoopyLil_2

ah never mind, I shall keep it buried under the tree in the garden

:rolleyes:

opinions4u

I think you need to clarify what you're looking to do.

Invest implies stocks and shares - which if it's for 12 months s probably not such a good idea.

Save (which is what I think you mean) implies stick it in the bank to get a decent rate of interest and reasonable level of security.

Assuming you want to save, do you need access or can you tie the money up?

Here's my gut reaction:

First £3,600 in to a cash ISA. If you have a partner, do £3,600 each. Nat West seem to be the top payers at the moment.

Next £3,550 (or £7,100 if 2 of you) in to a 6 month fixed rate account (e.g. Birmingham Midshires at 6.97% AER). On maturity transfer the proceeds in to your ISAs using next year's allowance. The interest may take it slightly over your limits - so anything over £3,600 treat yourself!

Split the remainder in to 12 month accounts that give you a balance between the level of access you need and the high rate you'd like.

www.moneysupermarket.com/savings can help.

I particularly like Birmingham Midshires 6.4% fixed that allows 4 withdrawals. Ideal if you need occasional access in a falling rate environment.

Alternatively with easy access whenever you need, Egg at 6.55% looks good, but the rate is variable and will fall.

You can get 6.6% fixed from them (BM) too. Or more if you're prepared to play with an overseas bank. I personally wouldn't after the fun with Iceland but it's your call.

Stavros_3

These are the best 1 yr fixes at the moment, grab one while you can as variable rate accounts are going like my nana's boobies..........South

MARCO1VAN

Would probably reduce any liabilites first, if not done already then take opinions4u route