Where to save £10K

hasnath

Wondering if anybody could advise me on where I could save £10k and possibly adding a further grand each month?

I'm currently saving for a house deposit but with prices still so high in London i'm realistically looking to save for a further year or so.

I've already go about £9.5K in a abbey ISA and would prefer something that gives me interest on a monthly basis rather than a yearly one just in case a property comes up at a reasonable price and I need to take out funds quickly.

Hasnath

cashbackproblems

I would look at the best instant savings accounts but they will be lower than 4% and you may be better off getting a 1yr fixed term account paying monthly interest with the option of early closure/withdrawal and you will obv thereaftr not get the high rate but in your case you wont need it. Best ones at the mo are ICICI online accounts, fixed terms are 4.35% for 1 yr and hi save with instant access (may want to look into that) is just under 2.5%.

camngnp223

If you can't use an ISA (because you've already reached your limit), I'd probably suggest Barclay's regular saver. The interest rate is currrently quite good (6% -ish) but, of course, they'll collect a piece of this interest for the taxman.

Cam

Jake'sGran

It's really hard at the moment. I have a number of bonds maturing and am fed up trying to find decent rates. Managed to get over 4% with West Brom but I think that is full now. I am going into equities with some of the rest e.g. Equity Bonds with Fidelity and M&G. If you fancy M&G use a broker to get the initial charge back in extra units but with Fidelity there is no charge. I believe M&G is the top seller of a Bond Fund at the moment. Have a look at the performance tables and also look at Martins list of best buys at the beginning of this section.

chewmylegoff

camngnp223 wrote: »

If you can't use an ISA (because you've already reached your limit), I'd probably suggest Barclay's regular saver. The interest rate is currrently quite good (6% -ish) but, of course, they'll collect a piece of this interest for the taxman.

Cam

you can only put £250pcm in the barclays regular saver, and it only lasts for a year - so you can only put in £3k in total. the £3k would have to have the money in an instant access account whilst waiting to go into the regular saver. i think that, currently, the best instant access rate is ING paying 2.75% therefore you need to average the savings rates to understand the actual annual return you're getting - 6% + 2.75% / 2 = 4.375%.

you can get 4.35% by locking away with ICICI for 2 years - and you'll need somewhere else to put the £7k that can't go into the regular saver - so not really worth the time and effort of opening the barclays and ING accounts to get 0.025% extra interest on £3k for one year (60p after tax).

if however, OP needs instant access to the money and doesn't want to lock away for 2 years, then probably want to put it all in the ING account and then moving £250pcm into the barclays regular saver obviously makes sense.

rb10

If the rate on the ING account remained the same for the whole year (but in reality it is variable), then you would end up with about £135.31 by doing the ING/Barclays Regular Saver combination (£108.25 net), compared to £130.50 earnt after one year in ICICI (£104.40 net). So the difference is £3.85. Not much.