Where's best to save £18k - Easy access

Charl__x

Hi all.

Looking for a little bit of guidance. My Guaranteed Reserve with Halifax has recently matured, and due to the rubbish rates now, I have decided not to re-invest with them.

So obviously, I came on here to have a look at the best rates... and I can't decide

I have just under £18,000 to put away, and I want easy access. In an ideal world, me and the OH would like to get our first place in the next year, so obviously I want this to be accessible to put towards a deposit, so locking it away really isnt an option, although that's what Ive done before.

From what I've read, the best options are:

• Egg - what's their customer service like?
• Citibank - but heard bad things about their customer service?
• Sainsburys - but limited to 3 withdrawals
• The AA - haven't seen much written on here about AA savings.

Any thoughts and ideas would be much appreciated and thanked greatly

opinions4u

Charl__x wrote: »

Looking for a little bit of guidance. My Guaranteed Reserve with Halifax has recently matured, and due to the rubbish rates now, I have decided not to re-invest with them.

Their 2 and 3 year Guaranteed Reserve rates are excellent at 4.30% and 4.55%. They also do 3.50% for a 1 year Fixed Web Saver. But you suggest that easy access is needed. Halifax pay 3% on their Guaranteed Saver Reward if you fund a current account with £1,000 a month and have any urge to stay.

So obviously, I came on here to have a look at the best rates... and I can't decide

ING 3.20%, Sainsbury 3.20% (limit of 3 withdrawals), AA 3.15% getting a good write up on another thread. Birmingham Midshires also do a telephone account at 3.15%.

From what I've read, the best options are:

• Egg - what's their customer service like?
• Citibank - but heard bad things about their customer service?
• Sainsburys - but limited to 3 withdrawals
• The AA - haven't seen much written on here about AA savings.

I like Egg, but their rate is lower at 2.5%. Citibank own Egg, no idea what their service is like. Sainsbury seems to keep resetting my passwords. The AA have a good write up on another thread.

Dustykitten

I'd go for 3 LLoyds Advantage current accounts myself at 4% and stick £6k in each remembering to circulate £1000 through the 3 of them.

psychic_teabag

ING pay new customers a similar rate, and recently had a promotion to give £25 bonus to recommend a friend (£25 to both referrer and referee). There may still be people with a spare code on the referrerals forum.

Have you already used your ISA allowance for the year (assuming you pay tax) ?

emma396

agree with dusty kitten, get some lloyds vantage accounts and whack up to 7k in each and earn 4% as long as you shift the money each month

Axel

Both Abbey and A&L are paying 6% AER for the first £2.5K plus £100 if you switch DDs etc. More than one account with A&L is a no go and Abbey are now cracking down on more than one account in your own name. You can always open one in your own name and one in your partner's name with both banks which would take care of £10K if you can be bothered with the additional admin.

Any remaining balance is best in Lloyds Vantage at 4% with up to three accounts in your own name, but you must be over £5K in each account to get the 4%. Over £7K the rate drops to about point one of one percent.

Axel

Dustykitten

Axel wrote: »

Both Abbey and A&L are paying 6% AER for the first £2.5K plus £100 if you switch DDs etc. More than one account with A&L is a no go and Abbey are now cracking down on more than one account in your own name. You can always open one in your own name and one in your partner's name with both banks which would take care of £10K if you can be bothered with the additional admin.

Any remaining balance is best in Lloyds Vantage at 4% with up to three accounts in your own name, but you must be over £5K in each account to get the 4%. Over £7K the rate drops to about point one of one percent.

Axel

I think You'll find that you cannot open an Abbey if you have and A&L - I was looking to open one but the terms state not if you have an A&L account or have had one within the last 3 months. They are certainly worth having though and once you open one you can use the refers link to get £50 if your partner/a friend wants to open one too.

http://www.abbey.com/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210609175590&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateB2

Look at the bottom under other information

Charl__x

Thankyou so much for all the replies and advice

I'm going to look into the options stated, and see what best suits my situation.

The Lloyds idea sounds good.. I'm going to read up on that now. To be honest though, Im abit lazy when it comes to organising my savings and such and if it involves moving money around, then it might put me off.

I'll have a read up now and come back with the verdict

Charl__x

Well Ive done a bit of reading, and I think I like the sound of the ING savings account - seems pretty straight foward, unlimited withdrawals, interest paid monthly and it's 3.2%.

In regards to ISAs though, I do have one open which I've had for yonks (interest is only 0.50%). I've only got around £650 in there at present which has all been put in this year. I'll probably be looking to withdraw that soon though.

So would it be best for me, as I pay tax, to make use of my ISA allowance and then put the rest into ING, or just bung it all into ING?

Newly_retired

You can put £3600 into this year's ISA + £3600 for your OH. From next APril it goes up to £5100 each. But once you withdraw it you can't replace it in that tax year - it's a one off situation. However if you can leave it to accumulate, you can build up a nice tax-free nest egg.

Baldur

Charl__x wrote: »

Well Ive done a bit of reading, and I think I like the sound of the ING savings account - seems pretty straight foward, unlimited withdrawals, interest paid monthly and it's 3.2%.

In regards to ISAs though, I do have one open which I've had for yonks (interest is only 0.50%). I've only got around £650 in there at present which has all been put in this year. I'll probably be looking to withdraw that soon though.

So would it be best for me, as I pay tax, to make use of my ISA allowance and then put the rest into ING, or just bung it all into ING?

Several of the 'best buy' easy access ISAs are offering 3.0% (the equivalent of 3.75% in a taxable account, such as the ING one that you mention).

If you withdraw the £650, you lose the tax benefits on it immediately - far better to select a new ISA provider, complete their ISA transfer form and let them transfer it.

You can then add any balance of the current tax year's allowance to the new Cash ISA account.