Is our £20k in the right place?

miracleboy

We currently have £20k in a Natwest e-savings account which pays 1.10% AER at the moment. Looking around would the money be better off in a cash ISA or something? Sorry don't know anything about savings etc.

Ideally we would want to still have access to it, or maybe move 10k into long term savings and 10k where it is?

This month the interest was around £16 in the savings acc.

Any advice appreciated.

a7man

If you dont need the money then might be worth starting to drip feed into stocks & shares - it depends what your objectives are.

Are you looking for growth, are you planning on taking a regular 'income'? Are you likely to use the money as an emergency fund? Do you have a timeframe to withdrawal?

If you want to stick with a capital protected high interest account then have a look at the best rates around at the moment.

pbw

20k of which 10k can be long term (LT) and 10k needs to be instant access (IA);

what i would do is;

3.6k (IA) in barclays ISA paying 3.61% gross (£10.83 interest per month)
6.4k (IA) in yorkshire BS internet saver paying 2.08% gross (£8.87 interest/month net)
10k (LT) in halifax 4 year fixed websaver paying 4.30% gross (£35.83 interest/month compounded)

some people wouldn't agree, but this is what i would do!

rb10

pbw wrote: »

20k of which 10k can be long term (LT) and 10k needs to be instant access (IA);

what i would do is;

3.6k (IA) in barclays ISA paying 3.61% gross
6.4k (IA) in yorkshire BS internet saver paying 2.08% gross
10k (LT) in halifax 4 year fixed websaver paying 4.30% gross

some people wouldn't agree, but this is what i would do!

... would give you just under £50 per month after tax ... rather better than you're getting at the moment, for only a small amount of effort!

willo65

I would definately be looking at an ISA for at least £3.6k and then maybe speak to the bank about whats on offer, have a look around see what else is on offer and then go with the best for you, maybe something like a combi bond with half instant access or half in instant access account and half in FRB

ray123

You can open two ISAs, one per person, which would allow you to plave 7200.
PBW has some very good suggestions, dont think you will find much better..
You could open a halifax regular saver, paying 4%, and drip feed 500 per month from the yorkshire a/c?