Best account for £10.000

booklover

Hello

I wonder if anyone could advise me where I could earn the most interest on £10.000 as i do not need it for a couple of years and would like to earn some good interest but don't wish to take any risks with it.

Many thanks

Fiona

Speculator

Firstly if you haven't already done so, put £3000 into a mini Cash Isa.

I recommend this one from National Savings http://www.nsandi.com/products/disa/index.jsp

Speculator

I would also recommend opening an internet saver a/c with Yorkshire Building Society with the remaining £7000. This pays 5.10% gross. Next, I would open a Yorkshire Regular Saver paying 6.50% gross and transfer money over from the internet saver each month. This have to be done online.

http://www.ybs.co.uk/savings/online/internetsaver/index.jsp

http://www.ybs.co.uk/savings/branch_based/regular_saver/index.jsp

booklover

Thanks a lot Speculator.

I am a bit confused by Isas though. I opened one with Natiowide about 4 years ago and have about 4k in it; i haven't added to it. So can I open anther ISA?

What about ING or Alliance and Leicester are they good too?

Many thanks

Fiona

Speculator

You have a £3000 Cash ISA allowance each tax year so yes, you can open another one. The National Savings one is good because it does not include any short term bonus rate.

The Yorkshire regular saver is exellent because you don't have to close it after 12 months and you are allowed one penalty free withdrawal per year. Also, the Yorkshire Internet Saver comes with a Link card and you can withdraw your money for free at most High Street Bank ATMs.