Instant Access Savings Article Discussion Area

Former_MSE_Archna

This thread is specifically to discuss the content of the

Instant Access Savings Article

To discuss or ask a question about the article: click reply

artichoke

hi

today i have been made redundant and so have£ 29,000 sitting in my current a/c. i need to set up a number of different savings a/c for this money. I don't plan to work for a few years - 2 kids under 2 - so should i also move my other savings from my isa into a high interest long term saving a/c?

I want to invest some but also want to put some in a high interest a/c from which i can set up direct debits into my current a/c etc to pay bills and to ensure i only spend the monthly allowance i have budgeted for....

i have budgeted a "salary" of £5k for 5 years until kids are at school, with the rest for emergencies etc,,

so which savings a/c if any allow you to have dd's out each months? or will i have to do this manually?

i notice mt local BS the derbyshire have an eaysave tracker at 4.6 gross - does this seem ok?

thanks for any advice

art

Paul_Varjak

MSE Archna did say that this thread is to discuss the content of Martin's article.

If you want such your own questions answered you should start your own thread!

artichoke

ok - sorry - am new and did not realize.

My questions occurred to me after reading the article as it did not mention if high interest savings a/c's allowed direct debits out...

sorry again. i will be more wary about posting next time....

if i ever pluck up the courage to return

art

jumpjockey

Under this topic it would be worth mentioning Northern Rock's Silver Savings accounts which offer a very competitive rate for instant access or 30 days notice, - both based on monthly income

MSE_Martin

Hi Artichoke,

Don't worry this is for discussing or questions arising from the article, so i see where you went. As your question is more about DD's though it'll probably get a better response in its own thread.

martin

mdb99jh

Bradford and bingley also do 4.85% so is one of the top clean payers. Since they also have the best clean ISA rate with their esaver ISA, its quite convenient to have both accounts in the same place. Keeps everything simple!

ba'heid

Is there any difference between interest payed yearly as opposed to interest payed monthly?

The reason I ask is I am considering moving funds from ing to A&L.

A&L pay the interest yearly but at ing it is paid monthly, this is useful as I have in the past needed to use the interest to pay unexpected bills (car repairs, plumbers ).

Would yearly pay more than monthly if the rate was identical?

Thanks

David42

At current rates, monthly interest is worth about 0.1%p.a. more than annual interest because you could re-invest the interest for the rest of the year.

So ING is paying a monthly rate of 4.41% gross p.a. which is equivalent to an account paying 4.5% annually. If you put in £100 and left the monthly interest in the account, you would have £104.50 after a year.

ING quotes both the 4.41% gross p.a. rate and the 4.5% Annual Equivalent Rate (A.E.R.).

Alliance & Leicester Online Saver Issue 2 pays 5.15% gross p.a. Because the interest is paid annually the A.E.R. is also 5.15%.

ba'heid

Thanks for that David.

It will make it easier to compare acounts :T

Tiplodocus

Great article - I may have missed this but we are trying to set up a savings account for our 17 year old daughter.

A lot of the accounts have age limits on them, and I noticed a recommendation for over-60s so does anybody have a clue what would be best for an under 18 year old (wanting to save holiday money rather than one of these regular saver type things taht tie you up for a year).

cheers
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