Whats best to do with £6,500

bettz

I'm currently saving each month £250+.I've currently got £6,500 saved in a Halifax account which pays £5 every month when i transfer £1,000 into the account.I was wondering if there's a better way to get more from my money without tying it up ??

I've noticed the first direct Regular saver account pays 8% but it means tying it up for 12 months which could be a option

qpop

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed

Have a look there to learn about the concept of "drip-feeding", which may well work well for you.
Before April 5th you can place £5340 into a Cash ISA which will pay interest tax-free.

There is no advantage to holding money in the Halifax account, as it pays no interest. You receive the £5 / month for the £1,000 monthly credit, so the optimal setup would be:
Max out this year's ISA allowance at a high interest rate
Put the rest in a high-interest savings account
Credit Halifax account with £1,000 monthly
Put £300 / month into First Direct regular saver (making up the difference from the instant access account if necessary).

calypso_rhapsody

qpop is right but missed a step - transfer the £1000 back out of Halifax to the high interest account the next day (i think you can even do it the same day ...)

bettz

Thanks I don't really want to tie my money up so I might just opt for a high interest savings account with first direct and keep transferring £1,000 into and then out again

Beckyy

You can transfer the £1000 straight back out of the reward current acc. - I do it every month.

Opening an ISA wouldn't tie up the money unless you picked one with a fixed term. It makes sense to open one, assuming you're a tax payer, as although you get the £5 reward from the Halifax account it doesn't pay interest like an ISA would and you can still withdraw it if you really need to.

Just make sure that there aren't any withdrawal restrictions on a savings account, such as loss of interest after X number of withdrawals, if you intend to take £1000 in and out.

psychic_teabag

And don't take £1000 in and out of an ISA : that will rapidly consume your ISA allowance since it only counts deposits. £1000 in then out then in counts as £2000 in.