what should I do with 10k-isa?

LizUK

Hi,
I have 10k savings just sitting in a saving account in my first direct bank account earning very little interest.

What is the best thing to do with this money in terms of saving? I dont want to risk losing it and am happy to lock it away for a year or so. I could also save about £200 a month.

Totally new to savings and isas etc so any advice would be great,

Many thanks,liz

xylophone

Open an ISA using £5760 of the money - (2.6% from Coventry?) and drip feed the rest into a First Direct Regular saver?

http://www.moneysavingexpert.com/savings/best-cash-isa
http://www1.firstdirect.com/1/2/savings/regular-savings-account?WT.ac=FSDT_TABS_HOME_FRS1000

phona

I agree with xylophone that you should use your new ISA allowance, especially if you are a taxpayer.

For the rest of your existing savings you could find them a new savings account if you can find a rate better than what you get from your existing account. Martin's article on top savings accounts should help with this and indeed with your question in general: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

A regular savings account would be a good way to save the £200 per month you mentioned. The 6% account from first direct is good but only available if you hold a current account with them. More on regular savers: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts
Regular savings accounts generally do not allow you to withdraw for a term, typically a year.

LizUK

Great and thanks for the advice - sorry to sound thick, but how do I drip feed into an account? Thanks, Liz

LizUK

Just found info on drip feeding! Thanks so much for advice, am going to set it up today, thanks, Liz

zzzLazyDaisy

Look at lloydstsb vantage account. It is instant access (you can have a card and a cheque book if you want) and pays 3% on amounts between £3k - £5k. This works out at more than most regular savers (remembering that you only get interest on the amount actually in the regular saver, so the apr works out to about half the headline rate).

innovate

£2.5K into a FlexDirect @ 5% AER for 12 months.

166million

innovate wrote: »

£2.5K into a FlexDirect @ 5% AER for 12 months.

That's only if you pay in £1000 per month