ARGHHHH £1000 what to do?

Neato

My sister has just recieved a compensation claim shes 16...17 in December so we need some sort of bank account for it but im bamboozling myself looking as I know nothing....any ideas?

Regards,
Neato

gelato_cat

She could put the money in a mini cash ISA or a high interest savings account like the ones offered by Alliance and Leicester (5.38%) or Bank of Scotland (5.25%). As she's probably not paying tax yet anyway, A&L may be her best bet - but as soon as she does become a taxpayer, she should think about using her ISA allowance.

Suze

Neato wrote:

My sister has just recieved a compensation claim shes 16...17 in December so we need some sort of bank account for it but im bamboozling myself looking as I know nothing....any ideas?

Regards,
Neato

Bisoy

Suzey wrote:

She could put the money in a mini cash ISA or a high interest savings account like the ones offered by Alliance and Leicester (5.38%) or Bank of Scotland (5.25%). As she's probably not paying tax yet anyway, A&L may be her best bet - but as soon as she does become a taxpayer, she should think about using her ISA allowance.

Suze

It won't be enough to open an A&L Direct Saver (5.38%) as this account has a minimum deposit of £ 5000 plus it is available to 18 and above. ISA would be her safest bet as long as she won't take the money out and possibly even putting a bit more.

gelato_cat

Thanks for the correction - BoS one is the same!

Suze

Bisoy wrote:

It won't be enough to open an A&L Direct Saver (5.38%) as this account has a minimum deposit of £ 5000 plus it is available to 18 and above. ISA would be her safest bet as long as she won't take the money out and possibly even putting a bit more.

Neato

Right okay thanks alot so best bet is to go for an ISA. WE did recieve a letter off Bradford & Bingley today saying there introducing three new accs. We've been looking at the3 year fixed term bond which has a minimum rate of 5.40%p.a minnimum deposit is £1000 however no additions or withdrawels are allowed throughout all three years.

Mr._H_2

If your sister needs access to the money over the next year, I'd say an ISA is the best bet. Go for the 5.3% one from NS&I.

5.4% isn't a particularly good rate for a three year bond, what with the expected future rate rises in the base rate. If your sister doesn't mind tying the money up for a year, she can get a very decent 5.8% from a one-year bond from Coventry building society.