Best deal for student savings account?

karena

Daughter at uni and would like to set up a student savings a/c for her. Any recommendaitons please?

Lokolo

How long does she want to keep the money for?
Does she have an ISA?
How much money does she have?
Can she tie any of it up for a period of time?
Is she a taxpayer?

karena

Lokolo wrote: »

How long does she want to keep the money for?
Does she have an ISA?
How much money does she have?
Can she tie any of it up for a period of time?
Is she a taxpayer?

She would like to keep the money for around 2 years. No, she doesnt have an isa, yes she can tie it up for a period of time. Not a taxpayer.
Sum would be around £5,000.00
Many thanks.

atypical

Highest 2 year fix currently is with ICICI at 4.25%. Highest instant access is Alliance & Leicester at 3%, go through TopCashBack and you'll get £20.20 cashback. Don't forget to use an R85 form so that tax isn't deducted on her interest.

There's an argument for opening an ISA now but I'd wait at least until next year. That way she gets the higher rates available on normal accounts now and can put all the money in an ISA in one go next year.

Porcupine

atypical wrote: »

#There's an argument for opening an ISA now but I'd wait at least until next year. That way she gets the higher rates available on normal accounts now and can put all the money in an ISA in one go next year.

If she wanted to do that, I'd be tempted to do that in two chunks. Open an ISA in Feb/March time and put £3600 in it (don't leave it too late, banks are usually swamped at this time of year). Then put the rest into the ISA anytime up to 5th April 2011 (or maybe open a new ISA at whatever the top-paying bank is of the time). That way she keeps the other £3700 of next year's allowance free. You never know, she may want to save some more money in that year, and doing it this way leaves that option open. It really depends if there's any likelihood at all that she might want to save some more before April 2011.