Instant Access Savings Accounts Article Discussion Area

spitfire1

hello all, first time post today-so be gentle please!
re savings-i have 365000 to use to its best, i want instant access to use the monthly interest as a regular income but may leave it alone if i can make ends meet month by month.my question is how can i optimise my return?
i want to keep it very simple please-do i take out an isa,then put all into highest account i can find?
please advise...

koru

DComedian wrote:

The new ING Direct Web Saver Account is offering customers 5.65% AER, and you can "move your money whenever you like - no penalties or charges" to quote their website. It is therefore very competitive for an instant access account, only bettered by IceSave's 5.70%.

Also bettered by Coventry First, which now pays 5.85% for the first year, as long as you can deposit £1000 per month (even if you just move the same £1000 in and out each month).

DComedian wrote:

Am I missing something here?

I think the ING account used to have more restrictions, but they seem to have been dropped, in which case I agree that this seems a pretty good option. (Though Coventry First is better, for at least a year.)

koru

spitfire1 wrote:

hello all, first time post today-so be gentle please!
re savings-i have 365000 to use to its best, i want instant access to use the monthly interest as a regular income but may leave it alone if i can make ends meet month by month.my question is how can i optimise my return?
i want to keep it very simple please-do i take out an isa,then put all into highest account i can find?
please advise...

You have £365,000 to invest, but is this for the long term or will you need to spend it at some point (eg, on a house)? If it is for the long term, then you may be better looking at other investments, such as unit trusts, but this would be off the topic of the current thread. You'll find previous threads that have talked about what to do with large sums. For such a large sum you should perhaps get advice from an IFA (independent financial adviser), though you need to be careful they don't just happen to advise you to invest in things that pay them a lot of commission. You might want to come back and post a new thread to ask what people think of the advice.

If you really do want instant access, I suggest Coventry First, as it pays 5.85% with no penalty for withdrawals. After a year, the rate will fall so you might want to move to another account, but in the meantime you will earn an extra 0.15% compared with the next best, which is more than £500 for you. Probably worth the hassle of having to move in a year's time. You'll need to transfer £1000 in each month, but this is easily managed - see my discussion earlier in this thread.

A cash ISA might also be good, but you can only invest a few £thousand per year. You might also try the Index-linked National Savings, also discussed in this thread. If you have other income, you may well be a higher rate taxpayer, in which case tax-free investments are particularly valuable as you save 40% tax. But you can only invest £15,000 in each certificate.

bye_bye_band_G

Martin's advice in the email circulated today to drop ING is fine for those who don't already have their money with them, but for those that do, there is no need to switch out of ING and lose interest for the several days while your new account elsewhere is opening and the cheque clearing.

Just move the entire balance in your 4.75% account instantly to ING's Websaver acccount, paying 5.65%, or their 6 month bond paying 6%. I've just done it, all with a click of a mouse.

The only downside was, as a non-taxpayer, I had to ring ING's helpline to register for gross interest on my extra account. The queue is ALWAYS at least 20 mins so this 0845 phone call will have cost over £1 and wasted my lunchbreak.

EmehEm2005

Re headline "Ditch ING Direct! It pays 4.75%, the top savings are 5.8%!"

Please note that yes, 4.75% is the headline savings figure, but for existing savers (and you only have to have £1 minimum in the ING Direct Savings Account which pays the 4.75%) the ING Direct Web Saver pays 5.65% AER and the ING Direct Fixed Rate Savings Account pays 6.0% AER (6 month mininimum fixed term)

See http://www.ingdirect.co.uk/savings/faqs/savings.html for further info.

Mike

EmehEm2005

Re ringing ING Direct; phone after 6pm or weekends (sat afternoon is my preferred time for any 0845 & 0870 numbers ), it's a lot cheaper! And the queue is not as long. Also try registering at 18185.com (mentioned in moneysaving expert.com)
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1095003038,99872,#alone


Mike

bye_bye_band_G wrote:

Martin's advice in the email circulated today to drop ING is fine for those who don't already have their money with them, but for those that do, there is no need to switch out of ING and lose interest for the several days while your new account elsewhere is opening and the cheque clearing.

Just move the entire balance in your 4.75% account instantly to ING's Websaver acccount, paying 5.65%, or their 6 month bond paying 6%. I've just done it, all with a click of a mouse.

The only downside was, as a non-taxpayer, I had to ring ING's helpline to register for gross interest on my extra account. The queue is ALWAYS at least 20 mins so this 0845 phone call will have cost over £1 and wasted my lunchbreak.

EmehEm2005

Re ringing ING Direct; phone after 6pm or weekends (sat afternoon is my preferred time for any 0845 & 0870 numbers ), it's a lot cheaper! And the queue is not as long. Also try registering at 18185.com (mentioned in moneysaving expert.com)



Mike

bye_bye_band_G wrote:

Martin's advice in the email circulated today to drop ING is fine for those who don't already have their money with them, but for those that do, there is no need to switch out of ING and lose interest for the several days while your new account elsewhere is opening and the cheque clearing.

Just move the entire balance in your 4.75% account instantly to ING's Websaver acccount, paying 5.65%, or their 6 month bond paying 6%. I've just done it, all with a click of a mouse.

The only downside was, as a non-taxpayer, I had to ring ING's helpline to register for gross interest on my extra account. The queue is ALWAYS at least 20 mins so this 0845 phone call will have cost over £1 and wasted my lunchbreak.

MarkyMarkD

bye_bye_band_G wrote:

The only downside was, as a non-taxpayer, I had to ring ING's helpline to register for gross interest on my extra account. The queue is ALWAYS at least 20 mins so this 0845 phone call will have cost over £1 and wasted my lunchbreak.

You can download an R85 form from the HMRC website and post it to IF, rather than spending time and money phoning IF. This applies to any bank/building society.

It annoys me intensely that HMRC insist on one form per ACCOUNT rather than one per INSTITUTION - we have been caught out by this more than once.

kevink_3

Has anybody heard about the Post Office Easy Access account which is now offering 5.5% AER available at any post office you must have a minimum of £500 in to earn this amount, but is available to withdraw without notice at ATM's and Post Offices Nationwide. If you want to leave your money invested for 5 years then they also have a great 5 year saver, NO RISK GUARANTEED, the way it works is, 50% of your deposit earns 6.25% over 5 years (works out at 35% of your investment) the other 50% of your investment runs with the fste shares growth at the end of the 5 years, if the share index grows then so will your investment, if it dosn't then you get your initial deposit back, meaning 50% without interest if their is no growth, I am looking into it but it seems like a really good deal. any comments..........

johnedwards3005

Hi - first time poster here.

I had already anticipated Martin's advice to 'ditch ING', but then picked up on ING's Websaver account as a good solution and immediately opened one with no difficulty.

However, the original account was in joint names with my wife (important for tax planning and other reasons) and luckily I subsequently realised that the new account was opened in my sole name! When I queried this with ING (by post, having given up on the phone), I was told that the Websaver can ONLY be operated in sole names (although each of us could hold one). [I have also found this to be a restriction shared with Birmingham Midshires' otherwise attractive internet accounts.]

This has triggered a move to Icesave, but I am also very pleased with Northern Rock's Silver Savings (for the over-60's) which pays 5.7% AER (with no introductory bonus element or withdrawal restrictions/penalties) and is guaranteed to at least match BR until 2010. It also allows joint accounts, pays interest monthly or annually (at the same AER) AND they can pay it to another bank. Useful when you're retired! It was very easy to open too.