£7,500 lump sum - where should I save?

LSM_2

Hi,

I have about £7,500 that I would like to put into a savings account. I would like instant access to the money but it's not essential.

I have seen the lloyds 8% offer but I can only pay in £250 a month, I would rather pay it all in at once. Where is the best place to put my money?

Thanks

ReportInvestor

I'd put £3K (your annual limit) into the tax free National Savings Cash ISA that pays 5.3% gross.

The other £4.5K I'd put in any of the following:

Birmingham Midshires 5.2% Internet Easy Access issue 6 (includes 0.65% introductory bonus).

Or Yorkshire BS 5.1% Internet Saver.

Or Chelsea Call-Direct 20 Tracker Issue 2 - 5.25% (but requires 20 days notice & the rate includes a 0.5% 12 month introductory bonus).

Then in April 2007 I'd add another £3K into the best paying mini-cash ISA going at the time to ensure gross interest on most of your money.

humfer

ReportInvestor wrote:

I'd put £3K (your annual limit) into the tax free National Savings Cash ISA that pays 5.3% gross.

The other £4.5K I'd put in any of the following:

Birmingham Midshires 5.2% Internet Easy Access issue 6 (includes 0.65% introductory bonus).

Or Yorkshire BS 5.1% Internet Saver.

Or Chelsea Call-Direct 20 Tracker Issue 2 - 5.25% (but requires 20 days notice & the rate includes a 0.5% 12 month introductory bonus).

Then in April 2007 I'd add another £3K into the best paying mini-cash ISA going at the time to ensure gross interest on most of your money.

Agree completely. Regular savers are also a good additional option if you want to slowly leak money out of the 'normal' saver account each month