Short Term Savings Account

Morglin

We often have small amounts (up to approx £300) available for a few weeks.

Rather than just leaving it in our current account, is there anywhere we can put this money to gain a few pounds interest?

We have savings accounts, but they are more longer term and tied savings.

Short of placing it on a short odds horse in the 3 O'Clock at Epsom, we cannot see any way of earning (even a little) on these floating amounts.

Anyone know of a no-hassles place to do this?

Cheers.

Lin

Hanxx

You have a couple of options:

1. Get an Instant Access Savings Account, something like Icesave (5.45% gross interest - just increased). You aren't going to make much interest on £300 over a couple of weeks, but your money is better in a savings account than a low interest current account. However, due to the recent increase in interest rates you might want to hold on for a couple of weeks until other banks' new rates start to come in.

2. The other alternative is to get a Premier Direct Current Account with the Alliance & Leicester, as they are paying a whopping 6.1% gross interest at the moment. That way you don't lose money whilst transfers to and from a savings account are taking place.

I'd go with option 2. It would appear to suit your circumstances better, and there is a bit less messing about.

jimclark1967

I use an Online Saver account, linked to my current accounts with both Lloyds TSB and Alliance & Leicester - transfers are instant and an ideal way to earn extra interest on cash you don't need for a couple of weeks :beer:

JC

RayWolfe

Agree with jimclark11976 becaues there is no loss if interest whilst the money is in transit. (Transfering in and out takes sis working days.)
Nationwide have a similar scheme to the above.
Ray

Morglin

Thank you for your advice Hanxx, Jim and Ray