£25K to invest for school fees

YorkshireBoy

tidyfinance wrote:

'Tomstickland', 'Isasmurf' and 'dunstonh' what the heck is going on?

You're not getting your information from reliable sources. Try here...

http://www.hmrc.gov.uk/budget2005/revbn02.htm

tidyfinance

Oh thank goodness for that. I knew you would be on the ball 'dunstonh'!
That's bad though isn't it. This was an article in todays Times.

Deemy

Yeh

ISA annual Limits £3000 Cash and £4000 Shares until 5th April 2010 !

So you have FOUR tax years left

4X7 = £28k

codetown

In response to the original question on how best to save ~30.000 pounds today (no risks and freedom of widdrawal if necessary), here my suggestions:

1. Open a premier Direct A/C with A&L (see referral board on this forum for a way to get 90 pounds directly out of it!). And this is a good current account with a 5% interest in itself (up to 2.5k pounds). Only catch: you need to put in 500 pounds a month (but you can take them out straight away) in this account.

2. Associated with it ask to have the A&L Premier Saving 10% account.
It will collect oney from the Premier Direct (up to 250 pounds/month) and put it into the 10% saving for you.

3. Open a Direct Savings with A&L. It has a 5.15% interest and you can operate it via A&L premier Direct A/C or any other account. It has a max of 25k pounds, but this seems to be in line with your needs!

4. You can also add a A&L Direct ISA which is also good at 5.2%, and especially good if you are a tax payer (as interest on ISA comes tax free).
In this you can invest 3k a year (plus transfer in any eventual ISA amounts you have elsewhere)

All details on the A&L web site:
http://www.alliance-leicester.co.uk/home/index.asp

This will give you more than the Cahoot.
Remember though that you are effectively limited to a lump sum of 25k + 2.5k+ 3k =30.5k pounds plus a regular saving of 250 pounds a month investment if you want a good rate with them.
Above this you should consider others.