Best place for my money short term

odb_2

Hello

Need some advice please for a friend, they want to get a decent current account and another account for savings, however the following are factors:

- current take home approx £1200 PCM
- temp employment so DO NOT wish to enter fixed monthly saving amount
- current savings approx £2.5k so ISA may not be suitable
- current monthly saving amount approx £500

Basically they want to put the money somewhere for a better return than it just sitting in the bank. I'm not sure what is best as savings accounts are ruled out becuase of the fixed monthly savings amounts? ISA is not ideal becuase of the 3k PA limit.

I'd guess maybe a combo of all 3 would work, high interest current account olike Lylods (5% on first 5k), plus and ISA with £3k sitting in it and then a normal savings account for the rest to sit in (what rates do these pay?).

Any advice would be greatly appreciated.

Debt_Free_Chick

odb wrote:

ISA is not ideal becuase of the 3k PA limit.

But it shouldn't be ignored. Stuff a cash ISA with £3k first and then look for places for the rest of the savings.

I'd guess maybe a combo of all 3 would work, high interest current account olike Lylods (5% on first 5k), plus and ISA with £3k sitting in it and then a normal savings account for the rest to sit in (what rates do these pay?).

Any advice would be greatly appreciated.

Agree, but sort out the ISA first. Although the Lloyds rate looks attractive, it's only 4% net of tax - plenty of ISAs pay more than that, tax-free. Don't ignore the regular savings accounts either as you can drip-feed into these e.g. some of the savings in the Lloyds account - drip feed into a regular savings account paying more. Martin explains it here

And current best buys for other savings accounts are here