Put aside sum for about 9 months.

mikrt

Hi,

I have about £90,000 which I need to put by for less than a year, so will not get any bonus as it will not be there long enough.

I will be drawing down over stages while building a house so am limited on withdrawals.

I will also be putting by around £600/month for about the same period.

All of the account I've seen include bonuses after a year so I'm not too sure where best to put my money - currently in Natwest current account.

Any advice would be greatly received,

Thanks,

Mike.

talana

mikrt wrote: »

Hi,
All of the account I've seen include bonuses after a year so I'm not too sure where best to put my money - currently in Natwest current account.

Bonuses for 12 months surely, not after 12 months.

shaun_from_Africa

You won't get any interest, but why not consider putting some of it into premium bonds.
You never know, you might get enough small wins to make up for lost interest and if you are lucky, the odd biggish win.

mikrt

Thanks for replies,

I thought bonuses were applied after 12 months, but I'm not sure, if paid from the start it wouldn't be a bonus, would it?? Confirmation here would be really appreciated.

Premium bonds is where I was intending to head until I thought I'd try this forum before I committed. I understand £30,000 per person is the limit, so I hope this can this be split between my wife, son and me. Is this correct?

Thanks again.

psychic_teabag

Read the specific T&C, but bonuses usually take the form of an increased interest rate during the first year. They pretty much have to be calculated daily based on the balance : else you could put in a large deposit the day before the interest is calculated and get loads.

Sometimes the bonus is only credited to the account on the anniversary, so that you have to keep the account open until then, but that's easy : just leave £1 in until you receive the bonus.

Beware that £90k would (just) exceed the compensation limit unless it's a joint account.

if you really don't trust bonuses, the virgin / northern rock account was at least recently the best-paying "clean" account.

Vortigern

Some bonuses are conditional on you keeping the account open for a year - even with these you'll still get the bonus as long as you keep the minimum amount required in the account for a year. The minimum may be as little as £1.
Some bonus rates are not conditional at all, they just drop after a year. What you must avoid are accounts with restrictions like only x withdrawals per year, and term accounts where you must leave all the money in for the full term.
Looking at the top savings accounts - link at top of page - the accounts from Santander or Virgin appear to be suitable for your needs.