query about savings accounts

flanny_2

Is there a savings account which pays a high rate of interest, but I can also withdraw money from by monthly standing order?

Debt_Free_Chick

Can you give us a bit more info, please?

What are you planning to do - put a lump sum into a savings account, but then draw off a monthly income? How big is the lump sum and how much income do you need each month?

Tell us what you're trying to achieve and you'll get more replies

grumbler

The only savings account I know that allows standing orders (and DDs) is Halifax Web Saver 4.5%. And AFAIK SOs can be only to another Halifax accounts.

This account could be of interest:

For a consistently high rate, but without the initial bonus, go for the Coventry Building Society’s First account. It offers 5.1% on the whole balance, up to a maximum of £250,000, as long as you pay in over £1,000 per month. It’s marketed as a hybrid Current and Savings account, but it has all the usability of normal current accounts – debit cards, instant access etc. (no cheque book though).

(Best Current Account Martin's article)

flanny_2

Planning to take a year out, want to deposit about 12k and pay it back into my current account at 1000 pm, whilst earning the best interest rate. If I do this at my bank I only earn about 1%.

Debt_Free_Chick

If you can use internet banking, then you don't need to use a standing order. You simply need to log on and do a manual transfer each month. Granted, this is less convenient, but it can be done.

I think the best interest rate at the moment is probably ICICI bank at around 5.15%. But even if you kept £12k in there for a whole year, it would only yield about £600 interest, which is only £480 for a basic rate tax payer or £40 a month. In reality, you would get less (as you won't have £12k in the account for 12 months).

you will be drawing capital as well as interest, so I would suggest going for the best interest rate whilst considering the convenience of transfers, online.

flanny_2

I will inquire about ICICI bank, however I am going to some very remote places where even the internet doesn't exist, that is why I wanted to set up regular payments to cover the bills at home.

Debt_Free_Chick

flanny wrote:

I will inquire about ICICI bank, however I am going to some very remote places where even the internet doesn't exist, that is why I wanted to set up regular payments to cover the bills at home.

In which case, Grumbler's suggestion might be your best bet. You will need to compromise the "convenience" with the interest rate. Sorry, but that's the way it goes.

Cheers :beer:

flanny_2

Thanks I will look into the halifax

grumbler

flanny wrote:

Planning to take a year out, ....

In this case think about registering accont for interest to be paid gross (form R85) if your income during a tax year is less than £5035 ...

flanny_2

Thanks for that, it won't be much but I guess it is better than nothing.