I need help making a decision!

jack92

I've got around £7500 that I want to save, but after reading through articles, websites, etc until my head is spinning I need help making a decision. I've asked DH what he thinks I should do, but his answer is "I'll leave it up to you"!

Our personal situation: DH may be being made redundant next month, so there is a real possibility that I'm going to need to be able to get at the money in the near future. I'm currently not working (full-time Mum to three young children, all at primary school), so I'd be able to claim the tax back on any interest I earn.

I've narrowed down my options to :

a) Cash ISA - DH and I both opening a Cash ISA and putting away the max £3600 each, with the surplus c£300 saved elsewhere (or spent!). Probably go for Firstdirect's 3%

b) Lloyds Vantage account - in my name, so I can be paid gross interest (4% gross if balance of account is between £5k and £7k). Although I'm not working at the moment it wouldn't be a problem to transfer across the required £1000 per month from our main current account, then transfer it straight back again. Although I'm not sure if that's going to be a bit cumbersome every month!

c) Notice Savings Account - I'm quite interested in FirstSave's 90 day notice account, paying 3.25% AER

d) NS&I Bond - I'm not sure if it's worth doing this because there is a real possibility that I'm going to need the money before the bond finishes.

e) Something else that I haven't come across yet??

Any advice or opinions appreciated

Thanks,
Nicola

DiggerUK

jack92,
given circumstances I would go option a.
Then cross fingers and go Premium Bonds with the spare 300.
Best of fortune.

redcar_2

If you don't pay tax then at the moment there seems no advantage in locking into an ISA, especially as you may need the money. I would look at this again nearer the end of the tax year when your position may be clearer and its use it or lose it for this tax year.

Also Lloyds vantage pays more gross than any ISAs I can currently see so on that front I think it is also a winner for you at the moment.

Usual disclaimers etc re advice!

slopemaster

jack92 wrote: »

Lloyds Vantage account - ... it wouldn't be a problem to transfer across the required £1000 per month from our main current account, then transfer it straight back again. Although I'm not sure if that's going to be a bit cumbersome every month!
Nicola

You can just set up a standing order to move it in, then out again.
I had that set up on mine for a while