Best rate for £10k

OneADay

I have just had a bond mature today and need to put it into something else.
I am trying to stick to my existing banks - halifax is one of them and they have a guaranteed reserve account for 3 years with AER rates of 4.5% annual and 4.59% monthly.

Am I right to conclude the 4.5% is the better option - annual interest.?

Secondly is there anything better out there at the moment, possibly 2 years - I have been comparing on the net but not found something that stands out.

iolanthe07

The latest National Savings bond is said to be very good - 4.5% per year if you keep it for two years.

OneADay

Cant find the National Savings bond at 4.5% over 2 years - its dropped I think.

Contemplating Principality 2 year fixed rate of 4.25% - not great but not much else about. Already have some money with ICICI (who offer same rate over two years) but talk about their stability forces me to not commit to much with them.

opinions4u

OneADay wrote: »

Am I right to conclude the 4.5% is the better option - annual interest.?

No. You'd be better to take interest monthly and save that income outside the account. The interest on the interest will earn you a small amount more.

Secondly is there anything better out there at the moment, possibly 2 years - I have been comparing on the net but not found something that stands out.

2 years: Halifax Web Saver at 4.2%; The AA 4.25%.

3 years: Birmingham Midshires 4.65%; Britannia 5%

Moneyfacts gives you a decent pointer.

iolanthe07 wrote: »

The latest National Savings bond is said to be very good - 4.5% per year if you keep it for two years.

It's been withdrawn.

OneADay

Prefer not to have an another bank on my list which I would get if I went to Principality.

Currently I use Halifax as main bank - 4.2% over two years a bit mean but its only 0;05% less than the others on two years.

What to do

kostigovs

Have a look at this if you have not already done so

http://www.thisismoney.co.uk/savings-and-banking/best-savings-rates/article.html?in_article_id=431812&in_page_id=50

OneADay

kostigovs wrote: »

Have a look at this if you have not already done so

http://www.thisismoney.co.uk/savings-and-banking/best-savings-rates/article.html?in_article_id=431812&in_page_id=50

I have - 4.25% is best I could see on there and moneysupermarket - not wanting to go more than 2 years. Even 2 is too long :eek:

opinions4u

OneADay wrote: »

Prefer not to have an another bank on my list which I would get if I went to Principality.

Currently I use Halifax as main bank - 4.2% over two years a bit mean but its only 0;05% less than the others on two years.

What to do

£10,000 at 0.05% is just over 1p a day. £4 a year after tax.

OneADay

opinions4u wrote: »

£10,000 at 0.05% is just over 1p a day. £4 a year after tax.

4 lottery tickets, I could be a contender, a lottery winner with that - loathed to stick with halifax. This money comes from a 9 month barclays bond which matured yesteday. Got another bond maturing with halifax end of this month - headache trying to get a return.