Where should I save £25000 short term

mumlady1

The title says it all really! I have approx £25000 which is earmarked for building work in our home due to finish in October. I need somewhere to keep the money until then (not under the mattress )
Does anyone have any sensible suggestions which might earn a bob or two in interest while we're waiting?
Thanks in advance

CLAPTON

instant access savings a/c

check out martin's list

Archi_Bald

The very best you can expect to get for some 60 days is 3% AER. That equates to roughly £123 before tax. This is not in savings accounts but current accounts. Savings accounts would probably pay half, if that.

100saving

as it is only for 60ish days its going to be hard to earn a lot. the best place is going to be either instant access savings a/c paying 1-2% or a Santander* 123 Current Account that charges a £24 a year fee but this would still earn more than most instant access savings a/c.

Archi_Bald

100saving wrote: »

.... a Santander* 123 Current Account

why use a referral link?

mumlady1

Hi everyone, thanks for the replies. The Santander 123 was actually at the top of my list I just wondered what others thought. I know it's just for a short term but if I got £100 or so, I'd be happy with that :T thanks again

noelphobic

you will only get interest on the first 20k in the 123 account so you would be better to find another 'home' for the surplus 5k. One of the Nationwide current accounts (Flexdirect?) pays 5% before tax on up to £2500 so I would put that amount with them and find the best savings account you can for the other £2500. You do have to fund both the current accounts monthly though. Santander with £500 and Nationwide with £1k so you will have to shuffle your money around a bit.

100saving

noelphobic wrote: »

you will only get interest on the first 20k in the 123 account so you would be better to find another 'home' for the surplus 5k. One of the Nationwide current accounts (Flexdirect?) pays 5% before tax on up to £2500 so I would put that amount with them and find the best savings account you can for the other £2500. You do have to fund both the current accounts monthly though. Santander with £500 and Nationwide with £1k so you will have to shuffle your money around a bit.

I was going to say this as well but when you are only talking about 60ish days is it worth opening up 3 new accounts thats the question?

if you pay 20% tax this is what you would get for 2 months:

• 123 account - £79.21 for £20k
• Flexdirect - £16.40 for £2500
• then lets say the other £2500 is in an account paying 2% to 3% that would pay from £6.62 to £9.90.

so for the 2months you would get around £102-105 but then you have to pay the £24 fee for the 123 account. it depends how much work you want to do? just remember the interest is calculated daily so if it takes 3 weeks to set everything up you will only get 5 weeks at best.

Is all the work setting everything up worth about the £50 you could end up getting? if you were looking for say 6months then i can see the point but for 60 days i don't know if i could be bothered for setting up 3 accounts then looking after them after the money is gone in 60 days.

also remember the applications for applying will be on your credit report for a year and could lower your scour for that time so may not be good if you need loans in that time.

mumlady1

Thanks 100saving, your reply was super helpful :T I am considering moving my account to Santander anyway so that bit is fine. Definitely not worth the effort to set up (and I have no time to monitor) a further 2 accounts. Not too worried about the credit check as I won't be applying for a loan in the near future.
Thanks again for taking the time to reply & for your advice everyone:T