Best saving means???

r2d55

Help!
I've got a bit of money at present that's sat in a current account earning no interest. I know that I should move it elsewhere so that its earning interest, but I don't know what type of savings account would be best as I may need the money in six months or so.
If I open an easy access ISA and have to withdraw the money in a few months does that I mean I'll get no interest at all, as the best rate ISA's only appear to pay interest annually?
What alternatives are there that will pay interest any higher than the normal (very low) rates?
Any suggestions gratefully received - I've spent hours and hours on the internet seeking advice and trying to reach a decision, but just get more and more confused.

DireEmblem

As you say that you "may need the money in six months or so", then surely a savings account that pays monthly interest would be of benefit to you?

There used to be a lot of savings accounts advertised on the likes of Quidco that also offered £20 on opening, but alas these now appear to have gone.

You do have the oppertunity to open another account at say "Santander" through quidco which offer you £55 cashback.

This could then offer you a seperate account to try and syphon any spare cash at the end of the month.

What I do, is have a seperate card from my main(bills) account, which i use for daily spending. I transfer a set amount into this each week, which I allow myself to spend(online etc - whatever), and at the end of each week, I round down the balance to the nearest £10, and transfer the difference into my savings.

In any case, Nationwide appears to offer the best rate of interest for instant access - and pays monthly but shop around!

http://www.moneysupermarket.com/savings/

All the best.

Reaper

r2d55 wrote: »

If I open an easy access ISA and have to withdraw the money in a few months does that I mean I'll get no interest at all, as the best rate ISA's only appear to pay interest annually?

It's amazing how many people think that. No, they calculate interest daily, they just add it monthly or annually. So it makes no difference which you have (*), when you close the account they will calculate how much interest you have earned up to that day and add it to your closing sum. Assuming you are looking at Easy Access rather than fixed term of course.

DireEmblem wrote: »

As you say that you "may need the money in six months or so", then surely a savings account that pays monthly interest would be of benefit to you?

No, see above. There is no point in having any money withdrawn and no longer earning further interest until it is needed.

(*) Technically there are VERY small differences between the two but it's complicated and we are talking pennies. I only mention it because otherwise the pedantic will turn up and turn the thread into a mathematical battleground!