60K and the best place for it with highest interest

stolt

Hi, i have 60k that is savings, I have a A&L fixed 5 year mortgage which has only just been taken out so i cant pay my mortgage off with it yet. Where is the best place other than my tesco account to earn a little bit of interest. Also as my wife is at home looking after our youngest shes not earning a wage, would it be best to ptu them money in her tesco account as she has signed a r85 form and not paying any income tax thereby saving us alittle extra.

thanks

kiboy6

If you are happy to lock your money away for a year or two there are fixed bonds available that will pay over 4% interest right now.

However, if you need the option of accessing your money, then just over 3% is the best you can hope for right now. The investec high5 account is one of the best bets. It guarantees you the average interest rate of the top 5 savings accounts at any given time. Lots of positive things written about it on this forum.

If you are interested in opening one of them PM me - they have a refferral scheme whereby we'll both get a 50 pound reward for you opening it up.

Steve_xx

I think the best simple account at the moment is Birmingham Midshires Telephone Extra account paying 3.15%. However, you ought to both maximise your ISA's first, then put the remainder in this account or seek a out a bond.

DiggerUK

Stolt,
Don't forget that you can open trustee A/C's in your child's name and get most of the interest tax free. There is a thread on the subject.

stolt

thanks for the replies, locking the money away for a year or two is definatley something that we can do.

stolt

DiggerUK wrote: »

Stolt,
Don't forget that you can open trustee A/C's in your child's name and get most of the interest tax free. There is a thread on the subject.

hi, is it something that you can do then withdraw it back into your bank account at a later date as i will need the money to pay the mortgage off in 5 years or so.

musehead

stolt wrote: »

thanks for the replies, locking the money away for a year or two is definatley something that we can do.

I'd say don't lock it up for more than 1 year, because the rates could be substantially better by then.

littlemrtinkle

rumours of a newcastle bs 5 % fixed isa for 5 years may be a good bet

DiggerUK

stolt wrote: »

hi, is it something that you can do then withdraw it back into your bank account at a later date as i will need the money to pay the mortgage off in 5 years or so.

The thread is currently on page 5. Yes you can move it later.

Take the advice not to lock money away for more than 1 year.

D1zzy

You could try the Investec High 5 - which pays an average of the top 5 accounts - so never the best but always reasonable (3% + currently). minimum £25K and 3 months notice to withdraw. If you don't want to go over £50K - open a couple of Lloyds classic with vantage @ 4% as well. I would agree with not fixing for more than 1 year - fixed rates are already beginning slowly to creep up.

[Deleted User]

I have just been given that same (nice) problem and these are the accounts I chose

newcastle isa 5 years (waiting for that)
investec high5
close brothers 3 years at 4.75
some to ing as that is an easy account for feeding my current account 2.75
and I put some into northern rock fixed 1 year bond 3.55

all times 2 as dh has the same as me

getting the bits of paper ID together was the worst bit and a bit time consuming but I did all that last night ready for off this morning, as soon as the money came into the current account