Highest interest non-regular saver

sarah_elton

For the first time in years I have need of a savings account.

A regular saver is no good for me - the only money I can save is from freelance work, not my main full-time employment so amounts are variable by month. I have around £1k currently, which will be topped up to £3k (that's the target anyway!) by the end of the year.

I'd prefer monthly to annual interest, just because I like seeing it come in regularly. But not sure if many savings accounts offer this?

It doesn't matter if there is a long withdrawal period - max. 90 days though. My job may be redundant at the end of this year, but if I'm still in it then I'd get 4 months notice in total, so can plan ahead (it's this threat that's making me save instead of do all the stuff to the flat I just bought that I want to right now ).

So is a cash ISA still the best bet? And this is such a newbie question, but if I put money into it then have to withdraw it March 2007 time because of redundancy (hopefully not but worst case scenario), would I still get the interest in April, even though the money went in and out before tax year end?

grumbler

sarah_elton wrote:

A regular saver is no good for me - the only money I can save is from freelance work, not my main full-time employment so amounts are variable by month. I have around £1k currently, which will be topped up to £3k (that's the target anyway!) by the end of the year.

As you already have £1K, you can use a combination of an instant access savings account and a regular savings account ('drip feed' - see Regular Saver link in the blue box above).

I'd prefer monthly to annual interest, just because I like seeing it come in regularly. But not sure if many savings accounts offer this?

ING pay interes monthly, but their 4.5% rate is not the best.

It doesn't matter if there is a long withdrawal period - max. 90 days though.

Banks dont pay higher interest on notice accounts now, but quite the contrary.

So is a cash ISA still the best bet?

Probably, yes, although 'drip feed' scheme with 10% regular saver could give slightly better results.

And this is such a newbie question, but if I put money into it then have to withdraw it March 2007 time because of redundancy (hopefully not but worst case scenario), would I still get the interest in April, even though the money went in and out before tax year end?

Yes, although not all ISAs pay interest exactly in April.

sarah_elton

Thanks grumbler - went to thank you but the button's gone! What's going on?

Anyway, thanks for the tips - better idea where to start now.