Whats the best?

misters_2

I know that question has probally been asked a hundred times on this board but i'm looking for a simple answer to a simply question.

I have around a hundred pound a month that i would like to save for a rainy day, what is the best account out there for saving, please remembere its for a rainy day so i would like if i could get my hands on it pretty sharp.

Thanx in advance.

empfun

"Make sure you're on a nice little earner and stick your money in an Egg Savings Account (Internet). And if you're quick enough to apply, you could take home a very special offer:


A fantastic introductory rate of 5.50% gross pa (variable) for six months, 5.12% AER (variable).

The introductory rate is guaranteed to be at least 0.75% above the Bank of England Base Rate.

After the introductory rate period, our gross rate is guaranteed to match or better the Bank of England Base Rate until at least 31 December 2007.

Access and move your money around online 24/7 with no notice."

Tongy

Whats wrong with an ISA?

Saving a £100 a month would bring you under the 3k threshold, without having to give 20% on any interest to the taxman.

Personally I'd go for a decent mini cash ISA, which lets you get your hands on it at short notice. Failing that, you could always get an ING type account and give some of your interest to someone that didn't work for it

Cheers
Tongy

misters_2

I dont really have anything like ISA as such, I do however pay into a pension.

All i was looking for was a simple account with high interest that i can move the money if need be without any charges. Preferably online, and easy to set up.

Paul_Varjak

As you have not invested in an ISA I would suggest that you put some money into a mini-cash ISA. You can transfer the money from your bank account by standing order each month if you wish.

The best mini-cash ISAs are paying over 5% at the moment. You could money on the moni-cash ISA free of all Income tax, which means you will get more return than from a normal high interest account - which also pay around 5% - but that is taxable!

misters_2

Thanks Paul, but which ISA, and would it still be easy to access my money after say a couple of months if i had to?

Reaper

You can take the money out of most ISAs immediately (well, a couple of days if they are postal accounts).

The best rate currently is First Direct who are offering 6.25% tax free BUT that only lasts for 8 months. Atter that time I suggest you transfer the money to another provider. This is an internet based account.

If you don't want the hassle of doing that then consider the Abbey Postal ISA which currently pays 5.35%. As the name suggests it is mostly operated by post

misters_2

It looks like an ISA is the best way to go. One more thing say in tragic event that i die what happens to the money i have saved if no one has access to my account online?