Lump sum - where to place?

bingobangobongo

I will be coming into about 50k in the near future and I am wondering what to do with it. I need it to be accessible should I need it in x no of weeks/months

I was thinking of opening a new account at the Ulster bank and putting it in this e saver plus account (3.26%): http://www.ulsterbank.ie/ni/personal/saving/instant-access/esavings-plus.ashx

Could someone also advise me on a cash ISA? I have no money in an ISA and I am wondeing should I put £3600 in an ISA that I can access... would I get better than AER3.26% if I did this? I bank with Nationwide so would prefer to open an ISA with them, but the Cash ISA (if I'm reading it right) is only 0.25%? I have looked at Barclays Golden ISA - seems to be a good choice at 3.51%

Thanks for any advice.

bingobangobongo

Its ok - I think I will just put it all on black..

Lokolo

lol just bump it every now and again, we're not all on at certain times. Like yday at 3pm I was in town shopping

First of all Cash ISA, £3600. Barclays is best one but you want to keep an eye on the rate, it is variable. However I were you I would look at Halifax's fixed at 3% for a year. http://www.halifax.co.uk/savings/isa-direct-reward.asp The money is accesible.

Can you fix any of the money up? If so you could do something like

£3,600 in ISA
£20,000 in 1 year fixed,
£10,000 in 2 year fixed
Rest in instant access Ulster bank.

Upto you really though.

hotkee

The best rate for cash ISA I have seen is that barclays one - that has a bonus as part of the interest for 12 months - probably have to move after that if they dont keep the rate.

3.26% ulster - better deals on offer if you willing to put the money into bonds - halifax web saver bonds, west brom bs, icici.

If you want accessible accounts - then your best bet is the ulster one I think for the time being.

bingobangobongo

Thanks folks much appeciated. Just out on interest (pun intended) - how much would £3600 earn at 3.61% over a year? Coupla hundred?

Lokolo

£129.96

£3600 * (3.61 / 100) if you want to know how to work it out.

Baldur

Lokolo wrote: »

£129.96

£3600 * (3.61 / 100) if you want to know how to work it out.

As opposed to the same amount in the taxable Ulster Bank account earning £93.89 after basic rate tax (£117.36 gross).

Both of the above assume that there are no interest rate changes on either account over a full year.

bingobangobongo

Superb. Thanks folks.

DFrancis_3

It is great that you plan on saving it and not wasting it on purchases. Also, paying off debt is a good option with a lump sum if you hold any.

G_M

I was thinking of opening a new account at the Ulster bank and putting it in this e saver plus account (3.26%): http://www.ulsterbank.ie/ni/personal...ings-plus.ashx

Trouble with the Ulster Bank is a) the stiff penalty for withdrawal in the first 6 months and b) after 6 months the rate drops.

Investec's High Five always pays the average of the five highest savings rates in the market, currently 3.17%. Minimum £25K and 3 months notice required. There's an introductory £50 bonus, and more discussion here.