Help needed for confused saver

ahudovsky

HI, I have 8000 pounds in my savings account which is paying dreadful interest. (HSBC, awful i know!)
I was hoping that somebody could tell me what to do with it. Should i put 3000 into an ISA, the Alliance and Leiscter looks good, and then the 5000 into their savings account? Or invest the whole amount with NS&L or any other provider?

I don't need any instant access to the money, I just want to invest it and earn the best amount of interest possible.

Could somebody please give me some advice, would be so grateful.

Thanks!

Unbelievable_2

Hi ahudovsky - welcome to MSE

Yes - use your ISA. Put £3000 into an ISA straight away, and the £5000 into an easy access savings like Egg savings (currently paying 5.5% for first 6 months). Then put another £3000 into an ISA as soon as the new tax year starts in April (doesn't necessarily have to be the same ISA - look for the best rate and T&Cs). After that when the bonus runs out on Egg be prepared to move your £2000 to wherever you can get a better rate. Moving accounts is so much easier now you can do it online.

lipidicman

After using your ISA (follow the advice above) Consider A&L at 5.35%. When the egg rate drops to 4.75% and it takes 8 days to transfer you wont be losing much for the benfit of a longer term home for your money! But it all depends on how you look at it

The only addition I would make is use the halifax regular saver to soak up the £2000 left over, this will take 8 months and you will need to plan how you will find the extra £1000, or set your standing order to £165 (~£2000/12), or supplement it from income

You will have to move the money from your saver, to your current and SO to halifax (Martin's drip feed method)- but the 7% to 5.5/5.35% differential should make this worthwhile!

ahudovsky

Thanks alot