Simple savings question

irregularity

Hi,

Sorry if this is a really simple question, I have had a read at the website, a lot to take in! Basically I am student, I want to save some money up to buy things, a new laptop/PC. The catch is I would like instant access with no penalties on interest, also monthly interest payments instead of annual. Not really sure what else to add, thanks in advance!

KingL

What you're looking for is pretty widespread - just an ordinary savings account.

You might find that you can find a better interest rate if you use one which links to a current account of a high street bank, rather than having it's own cashpoints. That way, if you want to make a withdrawal, you transfer some money from your (say online) savings account to your ordinary bank account and then withdraw if from your bank's cashpoint. This takes about 4 days, so is not quite 'instant' access, but will give you a wider choice of accounts.

As well as moneyfacts and moneysupermarket web sites, have a look at the FSA comparison site: http://www.fsa.gov.uk/tables/

irregularity

loaner wrote: »

monthly interest is no benefit, see moneyfacts moneysupermarket websites for best rates.

Is it a bad thing to have monthly?

The reason I would prefer this, is because I don't particularly want to be saving for a year for my purchases and what not. I am unsure as to how it would actually work, but If it was paid annually then the interest would be based on the money in the account at the time of interest payments? What I am saying is, if it is monthly I would be getting more regular, even if smaller benefits to my balance getting me closer to my next purchase. If you understand me.

Lokolo

No thats wrong. Its based on the average over the year.

So if you had £2000 in for 364 days of the year, then £0 on the 365th day when interest is going to be paid, you still get interest on the £2000 for the 364 days.