Advice on where to save my money.

Brodel

I came into a fairly large sum of money about 3 years ago, just over £20,000. Since then it has sat in a Nationwide e-savings account at 4.75% gross p.a./AER but I recieved a letter yesterday stating that this interest was to drop to 4.60% gross p.a./AER.

I would like to have good access to my money and do not want to take any risks with. I'd also like to be able to just pay the lump sum into the account rather than some which only allow £1,000 a month etc. I am a student so I'm not sure if that changes the situation but I was wondering if someone could recommend a better savings account to use?

I read in the savings and investments section of this website that

Best clean accounts. The Newcastle Building Society’s Newcastlenet annual interest account pays 4.9% AER from £1 up and web-bank Cahoot* pays 4.85% AER.

Would these be the best kind of account for me at the moment as I would like to be able to move the money around now and then too?

Thanks in advance for any help

nilocmac

ICICI offers 5.15%

I have used them for a while and they seem ok. I usually transfer between it and my Nationwide FlexAccount. The only draw back may be that they are internet only.

https://www.icicibank.co.uk/index.html

grumbler

Brodel wrote:

... I am a student

Are you a taxpayer?
If not, have you regestered your acconts to receive interest gross?
If yes, do you have cash ISA(s)?

Another account with 5.15% is A&L Online Saver .

Brodel

Thanks for the recommendations.

nilocmac: when you say they have been 'ok' have you had any problems?


grumbler: No, I am not a tax payer at the moment, I'm living at home but I temp now and then. I haven't regestered my acconts to receive interest gross. I'm not sure what that is to be honest.

grumbler

Brodel wrote:

...I'm not sure what that is to be honest.

Look here: http://www.hmrc.gov.uk/forms/r85.pdf. Usually banks deduct 20% tax from your interest by default.

P.S. See also IR111 leaflet.

Brodel

oh, one other question. I get my interest in my nationwide e-savings account paid in at the end of March, if I move it to ICICI will I get the same amount or is it calculated by having the money in there for a minimum amount of time first?

grumbler

Brodel wrote:

...I get my interest in my nationwide e-savings account paid in at the end of March, if I move it to ICICI will I get the same amount or is it calculated by having the money in there for a minimum amount of time first?

No minimum amount of time. Interest is calculated daily.

magentadreamer

If you've not got an ISA account then A&L Isa is excellent with a rate of 5.2%. Access is instant -well as instant as as a payment into your current account is. Also if you got the online saver with A&L at 5.1% then the two accounts can be linked together -as far as I can see - I've just opened an ISA with them last night but it looks as if I can shuffle money from the two accounts should I need too.

grumbler

magentadreamer wrote:

...Also if you got the online saver with A&L at 5.1% then the two accounts can be linked together -as far as I can see - I've just opened an ISA with them last night but it looks as if I can shuffle money from the two accounts should I need too.

AFAIK Online Saver can be linked only to one other account. I don't think it is a good idea to move all money to/from Online Saver through ISA.

BTW interest rate is 5.15%, not 5.1%

magentadreamer

grumbler wrote:

AFAIK Online Saver can be linked only to one other account. I don't think it is a good idea to move all money to/from Online Saver through ISA.

BTW interest rate is 5.15%, not 5.1%

I wasn't suggesting that they should move money from the ISA to the online savings account but the other way round,which is what I'll be doing come April. I've had a tinker with the account and obviously can't vouch that you can transfer from Online Savings to ISA or vice versa but it does appear you can as when I looked I had several options - my current account, my ISA and my online saver. Cheers for pointing out the extra 0.05% my mistake

grumbler

Possibly you are right (I cannot check this), but your experiece contradicts A&L description: http://www.alliance-leicester.co.uk/onlinesaveruserguide/index.asp?page=page3

Transfers either in or out of the account must be made through your linked current account .To transfer money from another account or from another Bank or Building Society, you must first pay the money into your linked current account and then follow the instructions above, to transfer it in to your Online Saver.

To make a withdrawal from your Online Saver, you will need to Log In to Internet Banking and transfer funds into your linked current account. Using the 'Move Money' facility.