Instant access savings with reasonable long-term interest

gaz77

Apologies if this has already been asked before, but I couldn't find a suitable thread.

I'm self employed, and when invoices get paid, I like to put a proportion into savings to help with the tax bill.
I've got an instant access isa where I put this money, but that has a limit to how much I can put in each year.

In the past I've opened additional normal saving accounts for the overspill, but the high rates have usually disappeared by the time I next need them.

I don't really have the time to be opening new accounts every 6 months, for what only makes a few pounds difference in interest.

Are there any instant access accounts that will always offer a reasonable rate of interest? I'm not looking for table-topping rates, just something that won't be near 0 after a year.

I remembered seeing an advert for a savings product that took the average rate of high street banks, but I cant find it. Are these types of products any good?

Thanks in advance

Thanks

steveksullivan

the Investec High 5 account which took the average of the top 5 accounts - but unfortunately I'm fairly sure the account is no longer available to new investors....... I'm sure someone else can confirm or you can Google it .....

Baldur

You are probably thinking of Investec's 'High 5' account, which was withdrawn for new customers in March 2010, but still appears to be available for business customers - see HERE.

Nationwide are offering a similar product to individual customers but, as you have found with other accounts, the bonus which makes it (initially) reasonably attractive falls away next August 31st - see http://www.nationwide.co.uk/savings/notice_accounts/championsaver/Introduction.htm

gaz77

Thanks for the replies - it was the nationwide account I'd seen.

The bonus disappearing wouldn't necessarily put me off, but it's 60 days notice, and a minimum of £1000 deposited at all times (or no interest) means this wouldn't work.
Likewise, the Investec business account is 3 months notice and £50k minimum.

I can only see fixed-term tracker accounts, so I suppose I'll just have to choose a normal instant access account and hope the rate doesn't drop too badly

opinions4u

I don't really have the time to be opening new accounts every 6 months

It usually takes me about 5-10 minutes.

juicyjude

Its not the time taken to complete an online application so much sometimes, as the time it takes to send have id verified by a lawyer,teacher etc and wait for the return, then the wait for the login details. It can take sometimes 3 weeks or more. And sometimes they still want extra documentation. OK id has to be verified but it does sometimes take quite a long time to set an account up.

getmore4less

If you have a mortgage an offset might be worth looking at now or next time you want to change.

What about a few monthly savers they offer good rate for a year.

Tesco seem to be leading the way with the instant access. They have just extended the "offer" period on their accounts from last year for some people and I just put a few £10k's into a new on-line at 2.6% and they have writen to say I am now on 2.75%.

alanq

What do you mean by long-term? ING offers a fixed rate of 2.75% for 1 year. The AA offers 2.80 for a year of which 2.3% is a fixed bonus. NatWest may offer 2.89% AER if only we knew what the Ts&Cs actually mean.

Yorkshire Building Society's Internet Saver offers just 2.1% variable but that rate hasn't changed since March 2009 and the account comes with an ATM card which most internet savings accounts don't have.
http://www.ybs.co.uk/savings/online/internetsaver/index.html

gaz77

ok, I think I may have confused things a bit with 'long-term'. I'm looking for an interest rate that will be reasonable over the long-term. i.e. not drop to (near) zero after a year.

However, the money I'm saving will just be short-term deposits. For an example, if an invoice was paid today, I'd try and put 25% into savings. The money would only stay there until January when I have to pay my tax bill. It probably won't earn a huge amount of interest, but some is better than nothing.
Occasionally, invoices are late, so I might need to take some money out to cover the mortgage etc - that's another reason why instant access is vital.

I did go down the road of opening new savings accounts every year, but it does take a while for everything to come through. I'd rather just have an account that I knew would stay at an 'ok' rate for the next few years.

Baldur

See this Moneyfacts article from earlier this year - http://moneyfacts.co.uk/news/savings/building-societies-offer-most-consistent-accounts/

Moneyfacts used to chart the most consistent performers in various savings sectors but appear to have dropped that function, unless I didn't look in the right place.

Sharker

Have a look at the Chelsea BS e-saver. It's registration procedure was the best I've used. It's ID security was done automatically online whilst I was registering. Very refreshing. None of this posting passports and original utility bills off via recorded delivery nonsense (or waiting at the doctor's to get a photocopy signed) then waiting three weeks only to find that your address on the utility bill doesn't exactly match that on your passport so you need to call in at the local branch 30 miles away. Do they really want you as a customer? The Chelsea was by far the best procedure I've come across for opening an account. I hope some of the others can learn!