Savings Club

loulah

Hi, can anyone help
We run a Christmas Savings club, where we put in "x" amount of money a month from December to November every year. What is the best account we can put it into to gain the most interest during the year from?

ReportInvestor

Hi loulah & welcome to the site .

Ipswich BS Target Saver (assuming it is going to be in an individual's name rather than a club) is worth a look.

They pay 8.25% on £90-£250 pm and the interest is paid on the anniversary of the account opening (when you also get penalty free access for the first time.

You can open with a cheque but after that standing order payments must be regular.

If you start one or more now with an opening payment then you could have access to the money by the begninning of December 2007.

Savvy_Sue

I'd be a bit :eek: about opening an individual account for this purpose. At the very least, an account in two people's names, where BOTH have to sign for ALL transactions would be sensible.

If people are setting up standing orders then it is definitely worth shopping around for the best 'Clubs and Societies' rate: I'm sorry I don't know who that is these days. But if they are giving you cheques / cash each month then you want one you can pay into easily, and accept that you may not get the very top rate of interest, but the convenience of being able to get the money in quick outweighs this, IMO. Personally I used to like Alliance and Leicester because we could pay in at the Post Office, and getting to a local bank branch was always a nightmare for me. They had a High Interest Deposit Account, and money could be moved from one to the other by phone, same day.

You also need to think about how the money's to be withdrawn: if it's by cheque then you need to be sure there isn't a restriction on the number of cheques you can write. If it's by cash you need to make sure you can withdraw lots of cash in quick succession.

Sorry there isn't an obvious and simple answer to this ...