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Someone please check my logic

I've just received £20,000 from my parents. My overall plan is to start looking for a property and probably get a mortgage in about 6-12 months.

I currently have £12,000 in a LloydsTSB ISA which has a one year guaranteed rate of 6.5% which matures on 22 May. I hadn't made any contributions in the 2008/2009 tax year (was paying off my debts, thank goodness for 0% balance transfers, and now nearly at zero :j) so have transferred £3,600 into that. The best rate ISA that I can find with instant access and provider transfer is NatWest e-ISA at 3.51%. You need an existing current account or savings account so have opened a e-savings account with £1. I plan to open an e-ISA at the start of the 2009/2010 tax year with £3,600 and then move the LloydsTSB ISA into it on the 23 May.

So at the moment I've got £16,400 that needs a savings home. I'll transfer £3,600 out on the 23 May to the new NatWest ISA and be left with £12,800. The best account I could see was the Citibank Flexible Saver Account Issue 4 which gives 3.21%. This seems to be totally instant access.

Does this look sensible?
Are there any hidden catches I've missed on the above accounts?
Are there any accounts out there that I've missed that would give better rates?

Comments

  • halifax does a 3.0% fixed. but you are allowed only a maximum of 4 withdrawels a year. i opted for this because natwest has not dropped its rate in the last rate cuts, and we could be heading for another one soon.
    Mortgage Start jun 2007 £88500 Outstanding Balance £51000
    Overpayments 2007 Nil 2008 £1040 2009 £7853 2010 £10000 2011 aiming for £18000 (6k so far)
    The Early Bird Gets the Worm, but the Second Mouse Gets the Cheese!!
  • sheslookinhot
    sheslookinhot Posts: 2,181 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    FirstSave have fixed rate at 3.6%. Covered by FSCS.
    Mortgage free
    Vocational freedom has arrived
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