Isa or Direct saving account

Johnlenham

Hi all

Im new to all the diffrent types of savings accounts and such so im just looking for advice.

I have a HSBC current account that allways has more than £1000 and in the last year its never gone below that so I was thinking I should stash it away for awhile.

I going to need to be able to drip feed money in (£50-100 p/m) aswell as being able to stick in about £800 off the bat but ill need access to it as next year I have to pay off going to Glastonbury (about £350) and going to Greece (about £500).

Any suggestions?
ISA seem a safe way but if im going to be dipping in after less than a year the interest will take a whack wont it (?)

ING Direct have a good looking direct savings account that seems simple enough but at the same time opening an A/L premier current account would bag me £100 (+poss £25 referal) but im abit put off by the £500 needing to go in a month.

Could I stick half in (£500) then each month put the other £500 in from my HSBC and take it back out a few days later? would I need to do that for 12 months:eek:

So confusing!

trynsave

Do you have a Reward a/c with Halifax?
http://www.halifax.co.uk/bankaccounts/reward-current-account.asp

If you were to open one and pass your £1k through it every month, they would have paid you £60 by the end of the year.

To get this return as a basic rate tax-payer you would need put the £1k away for a year in an a/c paying 7.5% - impossible!

You would also have access to your money if needed. It will involve a bit of organising to get the money in and out, but I'd do it!

Johnlenham

Ohh I never thought of that... so basically sign up, stick 1k in, transfer it out to my hsbc account after a few days (?) then repeat each month?

trynsave

Yes :j Any month you don't manage the £1k deposit you just won't the £5.


There is talk that Halifax will clamp down on a/cs that are used used in the way I have suggested so just to keep them sweet and make them think you are using the a/c you could tfr a bit more in each month and transfer a few s/o or d/d.

Alternatively withdraw the cash out in several transactions if you can be bothered.