New and looking for advice

shellie0510

Hi,

I am new to the forum so I apologise if a similar post has already been submitted.

I am looking for the best account to hold my savings. A quick background is that my partner and I have been saving for a house (for a while). We currently have £14000 between us and are looking for somewhere to put the cash, either separately or jointly, until we are ready to buy.

At the moment my £7000 sits in an account that gives me about 0.25%. Anyone know of anything better?

Thanks

McKneff

If you are tax payers, you are best investing in tax free Isas, you can put £5.100 in any tax year each and find a savings account for the balance.
My OH and I have Isas with the Halifax and also a savins account for him as he is not a tax payer, that is 2.6% but a bonus of an extra .2% because he has an isa with them too.

ultrawomble

Each open a Lloyds current account with Vantage. Put £7K in each and set up standing orders to feed each others account with £1K/month on the same day. That way you'll earn 4% before tax, so roughly £20/month after tax each. Move the interest elsewhere (effectively nothing is paid for balances over £7K) to earn interest else where.

shellie0510

Thanks for the quick advice.

McKneff - Rookie question I know but what will we earn on £5100 if we remove it after a couple of months? We both have halifax current accounts at the moment. Do they offer the best ISA interest rate?

ultrawomble - I perhaps should have said; both my partner and I are working, although only he makes more than £1000 a month.

Thanks again!

ultrawomble

shellie0510 wrote: »

ultrawomble - I perhaps should have said; both my partner and I are working, although only he makes more than £1000 a month.

That doesn't matter. For the purposes of the Vantage bit, the current account only has to be credited with £1K/month. It doesn't mind where it comes from. Therefore, if you and your partner have a Lloyds Vantage account each, you "pay" each other £1K on the same day (set up standing orders). That way your account "sees" £1K being credited as does your OH's.

King_Weasel

ultrawomble wrote: »

Each open a Lloyds current account with Vantage. Put £7K in each and set up standing orders to feed each others account with £1K/month on the same day. That way you'll earn 4% before tax, so roughly £20/month after tax each. Move the interest elsewhere (effectively nothing is paid for balances over £7K) to earn interest else where.

Just to add that you can have up to 3 Vantage accounts each. To earn 4% gross you must keep at least £5K in each account as well as pay in £1K/month (which, as already said, can be instantly withdrawn again).