£40 to put into savings? where

feefee_3

Me and my sister want to put £20 a month each away to pay for my mum and dads golden wedding in 3years time, she has already got an ISA so cant get another one Im not even sure if I have one dont think so. Whats the best one at the moment money will not be touched till 2008.
Im just looking for a good rate and easy to cash in after 3 years any ideas
feefee

jamborino

With respect, if you don't know if you have an ISA, chances are you don't have one!

An ISA is your probably your best option - there are plenty paying 5% or higher at present, and with instant access, so shop around the banks for the best deal.

Alternatively, several banks are doing high interest savings accounts at the moment, around 7% before tax which may work out better - but look at the terms and conditions first.

The 'Savings' section of this site will give you details of the best deals around at the moment.

lipidicman

ie by look at terms and conditions the poster means that the 7% ones empty after a year - so are less useful for you to save until 2008. If you are not a taxpayer the best way is to use a 7% regular saver and transfer the money at the end of the year to an ISA. If you pay tax then 7% becomes 5.6% after tax so this would not be worth the effort (and you may decide it isnt anyway). Get an ISA that accepts Standing Orders and let the bank do the work for you