Long Term Savings Which Account?

BLONDIE64_2

HELLO...my daughter will in a few weeks get a lump sum from an insurance policy of arround £6,500.she is turning 18 and intends putting £3,000 into a cash isa.she would like to save another £3,000 in a saving account which offers a bit more than her existing halifax saver reward....any ideas???

Kazza242

Alliance & Leicester's online saver pays 5.35% interest on a max £25K. I've had this account since last year. As your daughter already has a Halifax saver reward account, you might like to consider Halifax's Websaver account, which pays 4.9% interest.

The following accounts below are also worth a look:

Bradford & Bingley's E-Savings account
Interest AER: 5.25%
Min Investment/balance: £1,000
Interest Paid: Yearly/31st July
Withdrawals: Available on a penalty free basis and must be made via BACs transfer to a nominated bank account.
Account Operated: Via the Internet
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Yorkshire Building Society's E-Saver account
Interest AER: 5.20%
Min Investment/balance: £250
Interest Paid: Yearly/31st July
Withdrawals: The e-Saver allows you to make withdrawals of any amount at any time. All withdrawals are subject to the requirement to maintain a minimum balance of £250. All withdrawals must be made to your nominated bank/building society account.
Account Operated: Via the Internet
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Cahoot Savings account
Interest AER: 5.10%
Min Investment/balance: No minimum deposit
Interest Paid: Monthly
Withdrawals: There is no limit to the number of withdrawals permitted.
Withdrawals can be made by transfers to another cahoot account or by BACS transfer to an external account.
Account Operated: Via the Internet

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ING Direct
Interest AER: 5.00%
Min Investment/balance: £1
Interest Paid: Monthly
Withdrawals: There is no limit to the number of withdrawals permitted.
Withdrawals are made directly to a linked current account.
Account Operated: Via the Internet, Post, Telephone

Or you might like to consider a using a regular savings account. Here's a link to Martin's article on them.

You can find out about what else is on offer by checking out the Moneyfacts website.

ED

BONDIE64 - Indeed, if your daughter is unlikely to need access to the money inside a year, she could consider a regular savings account. For instance Derbyshire Bdg Soc offer 5.85% gross interest for variable amounts between £10 and £1,000 deposited each month (via Standing Order). One withdrawal is allowed per year without any penalty.