Advice on maximising interest whilst building house extension

PThomas_2

Can anyone recommend a 'UK' bank that's offering a good interest rate with an on-line account?

We have almost completed the re-mortage so we will soon have £50k to save for at least 3-4 months. They we will have to pay out around £25k and the remaining amount will be spent over approx 6-9 months.

I am not particularly comfortable with the ICICI and ICESAVE accounts based on some of the problems posted on here.

I would like monthly interest paid into the account and for the process of accessing the money to be as simple as possible (delay of a couple of days to transfer funds is not a massive issue)

mrs_deadline

Sometimes it's possible to draw down the money in tranches so you aren't paying interest on it till it's needed, I take it this isn't an option with your lender?

PThomas_2

I haven't discussed this option. To be honest I would rather start paying off the new mortgage ASAP. I am doing a lot of the internal work on the extension myself so this may be quick or slow depending how it goes, money needs to be available with a couple of days notice (especially if offer on kitchens, bathroom suite etc)

PBA

Similar to mrs_deadline's point, wouldn't a flexible mortgage be useful here. Draw down the money straight away, but put the amount you don't need immediately into the savings part of the mortgage. Then just withdraw it as required. Assuming you're not using a broker you'll almost certainly be offered a current account along with the mortgage, so transfers out should be quicker than going through BACS.

If you would rather have the money in a separate savings account, cahoot pay 5% on their savings and it can be linked to a current account for near instant access.