Taken voluntary redundancy - advice please :)

bristolian1

In the latest round of cuts at my company, it looked inevitable I would face the axe, so I applied for voluntary redundancy, successfully it turned out, and had my last day on Friday.
I'd been with the company for nine years, so walked away with a reasonable pay-off - £14,000. When I've paid off the overdraft and credit card, and we've gone through the added expense of moving to a new house (we rent), I should have just over £10,000 left.
I'm planning to put all of the money into a savings account and pay myself a monthly wage into my bank account.
Just wondered if anyone has any tips for this, can recommend a good account, whether internet or in-branch, which will allow me to withdraw from regularly and pay a decent rate.
Also considering putting a small amount into a fixed-rate account for 12 months to guarantee a return in a year, when, if I haven't got a new job by then, I'll really need it!
Anyway, any tips on the whole process would be much appreciated. I'm 30 and have never been unemployed for a day in my life before, having worked for this company every day since I finished university.

getmore4less

Sign on for JSA

there are plenty of instant access account paying 2.5%
I use Tesco,egg.

Also look at some regular savers they pay more

anamenottaken

bristolian1 wrote: »

I should have just over £10,000 left.
I'm planning to put all of the money into a savings account and pay myself a monthly wage into my bank account.
Just wondered if anyone has any tips for this, can recommend a good account, whether internet or in-branch, which will allow me to withdraw from regularly and pay a decent rate.
Also considering putting a small amount into a fixed-rate account for 12 months to guarantee a return in a year, when, if I haven't got a new job by then, I'll really need it! /QUOTE]

Have you asked/posted the shorter question on the Savings and Investments board? You are likely to get a more detailed reply there. Also look at http://www.moneysavingexpert.com/savings/savings-accounts-best-interest?dd

Opening a regular saver paying, say, 5% (that rate depends on banking with Lloyds TSB, look for the details), means that you keep money in the highest instant access account you can find and then transfer money each month to the regular saver. That would give you the lump sum you think you might need after a year.

Claim JSA (as soon as you are genuinely seeking work). Just because you have received a redundancy payment from your previous employer (and that it was "voluntary") does not prevent your being able to claim contribution-based JSA.

Hope you find fresh employment soon.

FinAdv

Hi Bristolian,

I think the best option in this market situation where the returns are not the best would be to put your money in Lloyds TSB current A/C. I have my money there and you get 4.0% (Gross) on amount between £5000-£7000 and have instant access to money like any other current account. Amount below £5k and above 7K give you less interest and it is calculated on a daily basis. So, I think its pretty good option. I dont know of any other bank that gives 4% interest on current account!!!

sagalout1954

FinAdv wrote: »

Hi Bristolian,

I think the best option in this market situation where the returns are not the best would be to put your money in Lloyds TSB current A/C. I have my money there and you get 4.0% (Gross) on amount between £5000-£7000 and have instant access to money like any other current account. Amount below £5k and above 7K give you less interest and it is calculated on a daily basis. So, I think its pretty good option. I dont know of any other bank that gives 4% interest on current account!!!

Theoretically FinAdv is correct about the Lloyds a/c, but forgot one important feature of it..........you MUST pay in £1000 each month to qualify for the 4% interest! Doesn't sound much like you'll be in that position.

bryanb

sagalout1954 wrote: »

Theoretically FinAdv is correct about the Lloyds a/c, but forgot one important feature of it..........you MUST pay in £1000 each month to qualify for the 4% interest! Doesn't sound much like you'll be in that position.

Can't you just put the same £1000 in and out monthly?

anamenottaken

bryanb wrote: »

Can't you just put the same £1000 in and out monthly?

Yes, indeed you can.

Actually, as it is an account which is paying good interest, it would be better to take it out and pay it back in immediately (rather than in and then out).