Best savings account for £110,000?

mouse_potato

Hi,

I'm asking this question on behalf of someone else:

Can anyone suggest the best Savings Account to deposit about £110,000 in? They'd then probably want to be able to make much smaller deposits throughout the year.

Or is it better to slowly deposit the money in the account? Is a monthly savings account better? Sorry I've got no idea about savings etc!


Thanks.

LOST

i'd put 3k into a cash ISA thsi year and another 3k after 6th April 07 - NS&I Direct ISA offers 5.55% tax free interest.

the rest would have to be into landsbanki or ICICI bank which have good rates

do they need the money within the short term? else i'd consider investing in an investment bond and/or stocks and shares if they require more growth than just cash deposits

mouse_potato

Thanks!

They don't need the money in the short term but they'd prefer not to go down the stocks and shares route.

landsbanki or ICICI bank - Are they online banks?

prudryden

mouse_potato wrote:

Thanks!

They don't need the money in the short term but they'd prefer not to go down the stocks and shares route.

landsbanki or ICICI bank - Are they online banks?

Do not go over the UK Bank Deposit Scheme coverage which is @£31,700 per bank for the above two listed banks.

cheggers

prudryden wrote:

Do not go over the UK Bank Deposit Scheme coverage which is @£31,700 per bank for the above two listed banks.

Too true, If I were you I'd spilt the money into 4 (£27,500) and invest with 4 different banks/building societies.

Stonk

The important figure for the protection aspect is £35K, not £31,700.

The £31,700 figure is the maximum you can get back, but you would only get that amount if you have £35K deposited. If you have £31,700 deposited, you can get back £28,730. This is because you only get back 90% of the deposit between £2K and £33K.

Assuming you are satisfied with 90% protection, you can deposit £35K just as happily as £31,700 (you can nearly get away with 3 top-paying accounts). And I'm kinda assuming you are satisfied with 90% protection, otherwise you need to open accounts with 105 different institutions!

uk_steve

Stonk wrote:

The important figure for the protection aspect is £35K, not £31,700.

The £31,700 figure is the maximum you can get back, but you would only get that amount if you have £35K deposited. If you have £31,700 deposited, you can get back £28,730. This is because you only get back 90% of the deposit between £2K and £33K.

Assuming you are satisfied with 90% protection, you can deposit £35K just as happily as £31,700 (you can nearly get away with 3 top-paying accounts). And I'm kinda assuming you are satisfied with 90% protection, otherwise you need to open accounts with 105 different institutions!

hi sorry to hijack post

but where can i find out more about protection when it comes to savings?

i am about to close my premium bonds account and put it in a savings account very soon and like to read and educate myself

IGK

As you mentioned they don't need the money in the short term, I would recommend Index-Linked National Savings certificates for some of the money. You can do £15,000 in each issue, and there are currently two issues available: 3 year RPI+1.15% and 5 year RPI+1.1%, so potentially they could put £30,000 in those.
They are completely safe (issued by the government), tax free, and currently are offering a decent return as RPI inflation is currently 3.7%, which means that the current yield on the 3 year one is 4.85% net. That's equivalent to 6.06% gross for a basic rate taxpayer or 8.08% for a higher-rate tax payer.
See http://www.nsandi.com/products/ilsc/index.jsp

Stonk

uk_steve wrote:

hi sorry to hijack post

but where can i find out more about protection when it comes to savings?

i am about to close my premium bonds account and put it in a savings account very soon and like to read and educate myself

Most banks' websites have information, or a link to it. It is called the FSCS, Financial Service Compensation Scheme.

To quickly summarise, if you deposit money with a participating institution and they go bust, you get all of your first £2,000 back, followed by 90% of your next £33,000. Above that, you may lose the remainder completely. It is on a per-institution basis, not per-account. So if you have a total of £40K in multiple accounts with a single provider, then you get protection only on £35K of it.

Most institutions that you will have heard of are participants, and it's usually easy to check because they mention it fairly prominently in the Savings sections on their websites.

uk_steve

Stonk wrote:

Most banks' websites have information, or a link to it. It is called the FSCS, Financial Service Compensation Scheme.

To quickly summarise, if you deposit money with a participating institution and they go bust, you get all of your first £2,000 back, followed by 90% of your next £33,000. Above that, you may lose the remainder completely. It is on a per-institution basis, not per-account. So if you have a total of £40K in multiple accounts with a single provider, then you get protection only on £35K of it.

Most institutions that you will have heard of are participants, and it's usually easy to check because they mention it fairly prominently in the Savings sections on their websites.

thank you very much

ArranP

Anglo Irish Bank - Isle Of Man - 12 month Privilege Bond @ 5.85% AER, tax there is at 15% therefore return is @ 497.25 AER.

http://www.angloirishbank.co.im/personal-banking/privilege-bond-account.asp