best short term saving account

krishcanag

Hello

I want to put a big sum of money into a couple of accounts so I dont loss out if if the banks go bust.

I am thinking of
1 nationwide esaving + 2% p.a/AER
2. Halifax web saver extra 2.5% p.a/AER gross
3. Nationwide mysaver online + (1.51% I think for reasons below)

Now I intend to max keep the money for about 3 months, will be used to buy a house, so Out of the 3 I am trying to do the maths to find out which one pays the most, I have also looked at ING-DIRECT but not sure about putting any money into this company.

regards

krish

soulsaver

HalifaxWSE seems an OK choice if you withdraw all at once; further w/d incur penalty 30 days loss interest equiv on sum w/d.. Plus open a reward ac with em too, cycle £1k pm through it and they pay additional 0.2%=2.7 on the WSE.

Also Consider PO @ 2.9%

Check out Lloyds multiple Vantage accounts for 4%. Search for details on here.

oramgepekoe

Tesco Internet Saver 2.7%. Supports fast payments both in and out.

http://www.tescofinance.com/personal/finance/savings/savingsaccounts/internetsaver/index.jsp

psychic_teabag

There's also the coventry e-notice account - requires a months notice to withdraw, but sounds like you have that. That pays slighly more than the best instant-access account I know of.

If you haven't already used your ISA allowance, you may as well do so, though if the sum exceeds the FSA guarantee, the ISA allowance would be peanuts. (And the Lloyds may also not be worth the bother - I suspect it would take some time to get all three accounts created.)

Beware that the nationwide esave+ account will penalise the interest rate for the whole year if you close the account ((IIRC). So just take the money out but leave the account open (which means you won't get the interest till the end of the year if it pays annually). But it's not paying a particularly good rate anyway. I think their branch-based champion account pays more ..? (Splitting money between two nationwide accounts wouldn't protect you if it goes bust.)

For just 3 months, need to take into account the time to open the account - might be better to put it into something you can open immediately, paying 2.5%, rather than wait a couple of weeks to open an account paying 3%. People on here report particular problems opening PO account.

psychic_teabag

oramgepekoe wrote: »

Tesco Internet Saver 2.7%. Supports fast payments both in and out.

http://www.tescofinance.com/personal/finance/savings/savingsaccounts/internetsaver/index.jsp

Needs a card-reader to withdraw, so be sure to get that set up in plenty of time, rather than waiting until you actually need the money. Limit of £10k per day withdrawls, so if it's a large sum of money, need to take it out gradually.

In fact, in general you need to consider how you're going to get the money out again, if it's a large sum that you'll need in a hurry. E.g. I think ING let you take out as much as you want, but only by a 3-day BACS transfer, whereas some places have a daily limit.

Many accounts seem to accept faster payments in these days, but not so many have faster payments out.

VT82

I'd whack some in ING. I'm sure it'll be safe for three months. Less likely to claim under the FSCS for that than for the Post Office anyway! And my only previous dealing with ING was very smooth.

oramgepekoe

Who's your current account with? They might have a suitable savings account for some of the money.