Where to put £31k?

CAROLEC_3

Hello everyone,

I'm new so please be gentle! Apologies in advance if I do/done something I shouldn't have e.g. started a new thread!

I've just had a policy mature and I've got £31,000 to put somewhere, probably for about 3 years until my son is 21. I would prefer an instant access savings account-ICICI seems to offer the best rate but after reading the many negative comments this has put me off somewhat.

What about Icesave? Are they any better?

Would I lose much in interest over 3 years if I were to put the money in a UK Bank or Building Society account? I know interest rates change all the time but if someone could work some figures out for me assuming the rate stays the same I'd be ever so grateful!

Thanks to everyone who replies.

jem16

Icesave have been very good for me. I joined them last November and have had no problems whatsoever.

corngoat

Icesave for me too. Quick and easy to open an account and very friendly and helpful if you need to talk to them on the phone - a big :j

c_smith

I've been with ICICI for over a year now and haven't had any problems with them.

amcluesent

>probably for about 3 years<

If you pay tax, the 3 year NS&I index-linked bond will pay out tax free.

CAROLEC_3

Thanks everyone.

Amcluesent - I thought there was a max of £15k you could put in or have I got it wrong? (Quite possible!!!)

jem16

There is a maximum of £15,000 on each issue. However a new issue is released fairly frequently so you could put in £15k now and then another £15k in the next issue.

Primrose

I'm happy with ICESAVE too. Wherever you invest the money, if your son is not a taxpayer, make sure you complete the relevant form (R85 ??) to ensure that interest is paid gross rather than having tax deducted, although I suspect for this to happen, the account will have to be in your son's name and he will have to produce the relevant Money Laundering identification documentation, (passport, driving licence, utility bills, etc).

CAROLEC_3

Primrose wrote: »

I'm happy with ICESAVE too. Wherever you invest the money, if your son is not a taxpayer, make sure you complete the relevant form (R85 ??) to ensure that interest is paid gross rather than having tax deducted, although I suspect for this to happen, the account will have to be in your son's name and he will have to produce the relevant Money Laundering identification documentation, (passport, driving licence, utility bills, etc).

Not an issue as he's working, anyway I'm going to open the account in my name 'cos he doesn't know about the money. I thought I would tell him when he's 21 and hopefully sensible enough by then not to go out and blow it on a car!!! I'm hoping he'll use it towards a deposit for a property but you know what young lads are like!

CAROLEC_3

I still can't decide whether to put the £31k with ICICI or Icesave.

Can any of you clued up fianancial bods tell me how to work out the difference in the interest I would earn over say 1 year assuming I don't make any withdrawals:-

ICICI - AER 6.05% Monthly interest 5.89% gross

Icesave - AER 5.95% Monthly interest 5.79% gross
Annual interest 5.95% gross

If the difference doesn't amount to much I will probably go with Icesave but do I go for monthly or annual interest or doesn't it make any difference?
(I don't think ICICI offer annual interest or do they??)

I bet you're all thinking I'm really dense! Sorry!!

YorkshireBoy

CAROLEC wrote: »

I still can't decide whether to put the £31k with ICICI or Icesave.

Can any of you clued up fianancial bods tell me how to work out the difference in the interest I would earn over say 1 year assuming I don't make any withdrawals:-

ICICI - AER 6.05% Monthly interest 5.89% gross

Icesave - AER 5.95% Monthly interest 5.79% gross
Annual interest 5.95% gross

The difference is 0.1% AER, so...

£31,000 x 0.1% = £31 gross (£24.80 after basic rate tax).

If the difference doesn't amount to much I will probably go with Icesave but do I go for monthly or annual interest or doesn't it make any difference?

It won't make any difference, if you leave the monthly interest to compound. Give or take a penny (due to monthly taxation), the two options will produce the same return.

(I don't think ICICI offer annual interest or do they??)

Doesn't look like it from their website.