£10,000 in current account - need advice

dirtyepic

Hi everyone

We were due to have some work done to our house this year and have held this money in our current account to pay for it. Unfortunately this will now be started at about March/April 2007 and should last at least 3 months.

We have put the rest of our money into ISA's, Premium Bonds etc but now need to find a way to get the best out of our remaining £10,000. We will need an instant access account so when we do need money to pay for engineers/building materials/labour we can just get it out without delay.

We have an appointment with Alliance and Leicester tomorrow to open a Premier Direct Current Account but that only pays 6.10%AER on the first £2,500.

So would it be worth find 3 or 4 higher interest current accounts and paying the maximum into them for the best return then when we do have to remove cash from individual accounts the interest is still paid on the remaining accounts.

Or am I being a bit daft here and there's a much easier solution.

Any comments or advice will be so gratefully accepted.

Many thanks

Terri

SeanW

What about the A&L Direct Saver paying 5.38%. The min balance is £5 000 and you can transfer to current account easily.

The only downside to this account is if you make a withdrawl you get no interest that month. So it depends on how likely you are need to withdraw more than the £2 500 in one month.

Otherwise Icesave @ 5.2%, you would incur maybe 3 days or so in transfer times though from that account to your current account.

codetown

If you wish to open an A&L account check the refferal part of this site. You can easily get 90 pounds just for the pleasure of being recommended by someone opening it!

A&L also have: a good DirectSaver at 5.38% (but you will NEED to witdraw your money on the 1st of the month not to loose interest) and the Online Saver (instant access but lower rated now; I think about 4.5%).

Otherwise open also the Icesave 5.2% and link it to the A&L account for almost instant access (2 days to trasfer and get your moeny back when needed)

dirtyepic

SeanW wrote:

The only downside to this account is if you make a withdrawl you get no interest that month. So it depends on how likely you are need to withdraw more than the £2 500 in one month.

Yeah that's what I was thinking by suggesting opening a few accounts with different banks then I could reap the benefit of the full interest facility on the maximum money held.

codetown wrote:

If you wish to open an A&L account check the refferal part of this site. You can easily get 90 pounds just for the pleasure of being recommended by someone opening it!

A&L also have: a good DirectSaver at 5.38% (but you will NEED to witdraw your money on the 1st of the month not to loose interest) and the Online Saver (instant access but lower rated now; I think about 4.5%).

Otherwise open also the Icesave 5.2% and link it to the A&L account for almost instant access (2 days to trasfer and get your moeny back when needed)

I will definitely check out the referral board. Thank you so much!

Good grief!!! All this money stuff really is confusing and very tireing. I'm sure life was easier when I had nowt!!! Only joking. I know I am very lucky to be in this situation and am trying to reap the benefits because it might not last forever!!!

Thanks for your help

T