Best account to put some savings - short/medium term.

GoldenEye07

Hi all,

I am looking for some advice on what type of savings account to open…

My wife and I have recently received some inheritance money which we currently have in my wife’s normal savings account with her bank, she’s uses this account just for everyday moving of money really.

On top of this I have received a bonus in work and want to add this to the money we inherited to form the bulk of a house deposit.

We won’t be looking to progress the house situation until early next year at the earliest so I wondered what is the best way to save this money.

An account with a decent rate of interest that is fairly flexible in terms of access would be ideal, to be honest I’m just looking for somewhere safe to hold my money for approx 6 months that I can maybe see a small benefit from rather than just keeping it my instant access saving account through my bank where the rate is very poor.

It will be in the region of 20k we are putting in if that makes a difference to the type of account....any suggestions?

buffman

I would look at the Santander eSaver 5. This is an instant access online account paying 3.2% gross for the first year. If you have not used your ISA allowances, you should also consider each opening up an instant access ISA eg. The Santander Direct ISA issue 9 paying 3.30 net.

GoldenEye07

Had looked into Santander, was just unsure about them because of the uncertainty surrounding them currently...have read the blog and other info but it feels a bit risky to me still.

Are there any others similar?

buffman

Your savings with Santander are protected by the UK govt. up to £85K.

What about Cheshire Direct Cash ISA (issue 3) paying 3.35% net and ING Savings account paying 3.15% gross?

GoldenEye07

Been doing a lot of research and reading on this over last couple of days and need to make a decision now...

A few people seem to have had issues with the Post Office and Santander accounts mentioned on the best buy section of the site for various reasons, I had also looked at the Aldermore account, at first glance it looks a reasonable account with a clean rate and easy access but I can’t seem to find much discussion on it on here.

Can anyone advise if they think it’s any good, or does anyone have one?

And also what institution do they fall under?

(FYI I am using my ISA allowance)

GoldenEye07

(see above)....Has anybody had any dealing with Aldermore and can tell me about transfer speed, customer service etc?

Any info appreciated.

calypso_rhapsody

Aldermore - excellent customer service - good online and responsive and intelligent on phone (at least in my experience!)

Ifts

Ive had a couple of fixed term bonds with Aldermore.
Good customer service from the dealings Ive had with them.

GoldenEye07 wrote: »

And also what institution do they fall under?

If you mean do they share the £85K FSCS protection with any other financial institutions?
The answer is no.

http://www.moneysavingexpert.com/savings/safe-savings#whatcounts