How to make our money work?

raezo

Hello everyone,

I am new to this and would appreciate some advice.

I have recently become unemployed. The good news is, I receive a monthly pension (£1275 pcm) and I also received a substantial terminal grant. I have £60.000 which I would like to make the maximum amount of interest. However, my wife and I may require instant access in the foreseeable future, as we may be moving and have to buy a new property elsewhere.
We are looking to maximise the interest in an instant access account. (preferrably on line). We would certainly appreciate any advice on the subject.
Thank you in anticipation.
Raezo. :A

kenshaz

see martins article savings
I used to have savings with ING,BUT THEY HAVE REDUCED THEIR RATE,for your amount CAHOOT,perhaps nationwide,not First direct withdrawel penalty,not ICCI unreliable

baldbloke_2

Spread any instant access savings between - at present -
Cahoot
Capital One
Egg
First Direct
ING
Monitor their interest rates, invest max £10k to £15k in any one and move your money around as appropriate. Having adopted this as my strategy for a similar amount of capital I have to say this is the most relaxed I have felt about my interest/income from savings for a long long while.
They were all easy to open and are all FSA members. They are basically the best of the current bunch and have been for a considerable time. If a new kid on the block with all the proper credentials comes along then add them to the mix. They are all viewable & managable online. What more can one ask for?!

kenshaz

why spread the amount between them,why not put the lot in the highest interesr rate provider

Milarky

kenshaz wrote:

why spread the amount between them,why not put the lot in the highest interesr rate provider

[meant to quote you, and clicked the 'thanks' by mistake.... well count your blessings;)]

One reason to do that would be slightly greater investor protection in the (fairly unlikely) event of a bank failing. The first £2k are 100% protected but only 90% of the next £33k - and that's per bank not per account!

Spread over 5 banks, therefore, you 'insure' an extra £23,300 on £60k against total loss. (That's 10 percent of £2k times 4 banks, plus 90 percent of total savings over £35 - £25k)

However by doing this with 5 institutions as opposed to the least number you'd need to - which is two, with £30k in each, you only 'insure' an added £600 whilst increasing the chances of suffering any kind of loss by 150% (because you have 5 chances 'in a million' instead of 2 chances..)

baldbloke_2

I also think it's wise to keep as many accounts alive as possible (within reason of course!) to spread the chance of being in at the right or wrong time when interest rates change and you want to shift balances without waiting to search for and open new options.

baldbloke_2

[QUOTE=Milarky...

However by doing this with 5 institutions as opposed to the least number you'd need to - which is two, with £30k in each, you only 'insure' an added £600 whilst increasing the chances of suffering any kind of loss by 150% (because you have 5 chances 'in a million' instead of 2 chances..)[/QUOTE]

My God you've got me worried now! :rolleyes:

raezo

Thanks for all your advice. I will obviously give it due consideration.
Useful info.
I read in one of the newspaper yesterday that the Leeds BS is offering 5.25% on its new bonus tracker A/C. Does anyone know of anything better or at least anything comparible?

Raezo :A