Decent plan for £20K savings.

tomstickland

My mother has been given £20K by her late father. She wants a simple savings scheme.
I suggested:
-2 mini cash ISAs (one now, one April)
-high rate savings account (as close to 5% as possible)
-10% reg saver if possible (7.5% effective rate on £3K)

She doesn't want "the hassle" (her words) of having all the various things at different places.

I'm wondering if A&L might be a good solution.
-decent ISA (5.2%)
-iss 2 online savers account (5.15%)
-refg saver 10%
-online banking, though she will have to use the 0% interest rate current account. Not a problem though, current account is just for cash movement.

the other options are:
-first direct Esavers, though the ISA rates aren't so hot

Cahoot.

Any comments welcome.

[edit]
I've looked at five options:
A&L http://www.alliance-leicester.co.uk

Cash ISA 5.2% until April 2007
Savings account 5.15% until April 2007
Reg saver 10% on £250 pcm (7.5% effective rate over year)
Standard current account with internet access (0% interest)

Cahoot http://www.cahoot.co.uk/

No ISA
Savings account 4.85%
No reg saver
Standard current account 4.0% AER

First Direct http://www.firstdirect.com

Cash ISA 4% AER
E Savings account 5.0% AER but no interest in months where money withdrawn.
Current account 2.0% AER

Halifax http://www.halifax.co.uk

Cash ISA 5%
Web saver 4.5%
Reg saver 7% AER
Current account 0.1% AER

Lloyds-TSB http://www.lloydstsb.com
Cash ISA 4.65%
Online saver 4.25%
Classic current account 0.1%


Looks like A&L is best option until next April.

Deemy

Maybe also £4k into a shares isa ... select some good long-term investment trusts i.e. say an indian, japanese, canada and eastern european.

Yes in the short-term high volatility, but in the long-term as evidenced by performance to date UP, UP, UP !

I could recommend some, but the guide would only edit them out.. so no point

codetown

Yes. A&L is the best bet at present.
I transferred some savings there as well as they have had good rates up in the last month or two.

Problem is that you can't seat and relax.
You have to follow rates movements on a regular basis and be ready to switch when necessary. So if your mother is not ready to accept this, then she might be better with a local building society which is always average, suc as nationwide, even if in the short term she might loose some interest.

tomstickland

She's agreed to move it there for now and reconsider in 12 months time.