Where should I put a big cheque?

realradiorenegade

Hi everyone, I have got a big cheque that I need to put into the bank but which bank account would be best for me?

I am 23, I don't really spend much money but would like to spend a little bit of this money.

I have 2 bank accounts one with RBS Which I have nothing but problems with. I also have an account with Barclays which I hardly use got about £30 in it.

Are there any high interest account out there that would work well for my money?

Many thanks

D1zzy

Depends how big is "big" -
(must admit I have no idea where I'd put a few million -( and keep below £50K in a single account) if I won the lottery ...

You can get 4% with a LLoyds classic Vantage if you maintain a balance between £5000 and £7000. & you can open multiple accounts if you want.
If you have more than £25000 - Investec High 5 is 3%+ - but you need to give 3 months notice to withdraw.
Or if you want to get a fixed rate there are some 4% + for 1 or 2 year fixes around

Check out some of the comparison sites - Money Facts; Money Supermarket etc
http://www.moneysupermarket.com/savings/
http://www.moneyfacts.co.uk/money/savings/0/savings-accounts-finder.aspx

realradiorenegade

Hi thank you for your reply, We are talking about £80,000 Would I be best to get a credit card to buy the stuff I would like and then pay it off at the end of the month?

I've never had this sort of money before so I'm not really sure on what to do with it, the way the banks are at the moment is it best to keep it under my bed? lol

Tongue

The best and safest thing to do is turn the cheque into cash and let me mind it for you

No seriously do NOT put more than £50K in any one bank as you are only guaranteed upto that amount so spread it into 2 maybe 3 different bank accounts.

£20K Lloyds

£20K A&L

£20 Barclays

£20K Premium Bonds

Enjoy!

D1zzy

Lucky you!!
Well at least initially you will need to pay it into a bank account - you might want to open 2 so that you can keep each below the £50,000. (no need for the bed then)
Check out moneyfacts and money supermarket for comparisons to find the best.

Then decide what you want to use it for:- spending; long term saving(say for a property); short term saving; income generation (monthly interest); capital growth - bit of each

Once you have a plan you can start to work out which are the best savings/investments to meet your plan and if need be discuss with an independent financial advisor

Oh - and if you are a Tax payer don't forget to use up your ISA allowance...

realradiorenegade

Thanks for the offer Tongue I'll keep you in mind

D1zzy it is sort of lucky me but not I had a really bad car accident and only just got paid out after 4 years!

So I am best putting the cheque into a bank account and drawing out 50 or 75 grand and putting it into different bank accounts?

I want to take a trip to New York and a few other bits and bobs, and the rest I can put somewhere and let it grow.

I did think about property but I don't think that I would want to take that sort of risk on my own.

Would I find a independent finiancial advisor in the yellow pages or something?

D1zzy

If a bank is gonna go belly-up the amount you have in an individual bank is guaranteed upto £50,000 (including any interest) - so yes pay it into 1 then transfer say £40,000 to another in a different bank so you have 2 accounts each under £50,000.

Then take a breath and - think about how you want to use it once you've done the "fun things" that you have planned.

Bank Interest rates are not briliant at the moment - but you can get 2%+ on a savings account with insant access (Tesco & ING - maybe more)- so maybe move half the money into 1 of those to give you thinking time.

PS - sorry about the accident & glad you got a payout

libra10

Don't forget your current ISA allowance.

realradiorenegade

Sorry I am a bit naive when it comes to bank accounts and money, I know if I have enough to pay my bills I'm ok

So whilst this cheque is clearing could I set up lets say an ISA and 2 other bank accounts without having to deposit a large amount when I set it up?

Thank you everyone for all your help

D1zzy

I know I keep saying this - but take your time there is no panic. Open a savings account with instant access on-line - you don't need to put money into it.
Pay the cheque it into your current account. When its cleared you can transfer enough to get your current account balance below £50,000 (say £40,000) to your savings account. Then do nothing whilst you think about what your future needs might be and what you want the money to do for you. Then you can work out the best place to put it. Yes if you are a Tax payer you should use your ISA allowance - but there is no panic (you have until April) - and interest rates are so low that you will not lose much by spending a couple of months thinking about how to make best use of the money, and who knows rates may rise in that time (they can't get much lower)
...nd don't forget to enjoy some of it!!

opinions4u

Take a look at www.moneysupermarket.com/savings and www.moneyfacts.co.uk

Consider a range of accounts:

- Cash ISA (e.g. M&S for the first £3,600)
- Instant access savings (ING seem to be hanging out there with a decent rate)
- Fixed term savings accounts (some good rates out there for 2 years)

If you really want to consider longer term what you can get out of the money, why not see an IFA and see what other tax advantages they can get for you?

https://www.unbiased.co.uk