Savings/ ISA help

sportie

I am trying to sort my finances out and at the moment just have a current account and an internet savings account (which is only paying 0.25%). I have approximately £5000 to put into an account from my internet savings account but need to be able to access it, if things started breaking/ falling apart.

I'm not sure where to put this money. I have been looking at the ING direct savings account at 3.2%, is this about as good as it gets at the mo, any suggestions/ advice??

Thanks

poppy10_2

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#instant

Baldur

sportie wrote: »

I am trying to sort my finances out and at the moment just have a current account and an internet savings account (which is only paying 0.25%). I have approximately £5000 to put into an account from my internet savings account but need to be able to access it, if things started breaking/ falling apart.

I'm not sure where to put this money. I have been looking at the ING direct savings account at 3.2%, is this about as good as it gets at the mo, any suggestions/ advice?

If you don't already have a Cash ISA, First Direct are offering a rate of 3% fixed until November 2010 on their e-ISA (the rate is fixed but the funds are easy access). If you are a standard rate taxpayer, you would need a taxable account (such as the ING one that you mention) to be offering 3.75% to achieve the same 3% net interest.

If you are under 50 years of age up to 5th April 2010, you can subscribe up to £3,600 to a Cash ISA, if 50 or over by the same date, you can subscribe up to £5,100.

Any balance could be placed in any 'ordinary' savings account of your choice.

natman

sportie wrote: »

I am trying to sort my finances out and at the moment just have a current account and an internet savings account (which is only paying 0.25%). I have approximately £5000 to put into an account from my internet savings account but need to be able to access it, if things started breaking/ falling apart.

I'm not sure where to put this money. I have been looking at the ING direct savings account at 3.2%, is this about as good as it gets at the mo, any suggestions/ advice??

Thanks

Hi.

I totally agree that you have to shift your money away from the 0.25% you mention -

Three things to consider -
Bank account - Abbey has a bank account paying 6% on funds up to 2500 as long as 1000 goes in every month, you can take this 1000 out. http://www.abbey.com/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237835058201&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

ISA - Consider an ISA, The ISA baldur mentions seems a good product at the minute, plus for example if you add to your tax free savings every year, in a few years or so you end up with a nice nest egg that is tax free. Skipton has a fix for two year ISA AT 3.20% but its not as flexible as the First Direct one.

Instant access - The Ing account you mention is fine........... but I personally hate ING , they reduce the rates all the time, just check that this offer lasts, as soon as the initial offer period comes to an end, you will need to ditch the account due to the poor interest rates they normally go down to. CITIBANK have a 3.30% http://www.citibank.co.uk/personal/banking/saveinvest/saving/fsaver/splash/index.html?source=3645

Hope this helps