Savings account query

TheBestNameICouldThinkOf

Hello good people of MSE. I hope this thread finds you well. I am getting a new car and do have the cash to buy it outright but they are offering 0% with no admin charges so I am thinking for the four years I am paying it I would like to put the rest of the money together with some other money to get some interest. I should have 30,000 in total. What is the best savings account and with whom bearing in mind I need instant access to pay the car off each month.

Thanks :-)

Gromitt

You've just missed a load of decent savings accounts, but there is a list on the forum, plus on the home page under 'Banking/Saving'.

Got an ISA? If not, grab one of those.

Then it depends on how much money you need. If its a fixed amount per month then you could put so much away for 2 or 3 years, so much for 12/18 months, and the rest in an instant access 3% account.

It depends on how much work your willing to do.

xylophone

If you do not have an ISA, suppose you open a four year fixed 4.15% monthly interest Isa for this tax year (Halifax) (£5340) and then another similar in April (£5640).
You might consider putting the rest into an on-line monthly interest paying account, moving money into ISAs as the years pass.
http://moneyfacts.co.uk/compare/savings/accounts/search-results/

psychic_teabag

Need to check the small print on the finance deal : if there are circumstances under which they'll demand a payment (eg you want to sell, or it gets damaged, or...) would be a risk to lock some of the money away for later years.

Even though it's advertised as 0%, is there no chance to get a discount to pay cash. (I'm suspicious of these 0% deals - just means they've bumped up the price a bit to cover the costs, or there's something in the small print to catch you out.)

TheBestNameICouldThinkOf

Thanks for the tips

rockitup

[QUOTE=psychic teabag;51032249

Even though it's advertised as 0%, is there no chance to get a discount to pay cash. (I'm suspicious of these 0% deals - just means they've bumped up the price a bit to cover the costs, or there's something in the small print to catch you out.)[/QUOTE]

Following on from psychic teabag's post, the time should be ripe for demanding a juicy discount on a new car especially when paying cash.
You have to be tough when demanding your discount, don't ask nicely as the car sales staff are used to fobbing off people who do that

Just go back to dealer and try your luck, say you have seen another car that interest you and make an offer with a contact number. If they are looking to reach sales targets at end of month or financial year, deals will be done