MSE expert savings advice sought

brigbrown

Hi,

We became debt free some time ago and since then have built up a small amount of savings (around £15,000). I know our savings are not working their hardest and I would really appreciate some expert advice and opinions about where to put our savings. The current state of play is as follows:

My HSBC cash ISA = £6500 (this year's tax free allowance already invested)
Partner's HSBC cash ISA = £6000 (this year's tax free allowance already invested)
HSBC premier instant access savings account = £2500

I believe the interest rates of HSBC cash ISAs is currently 4.75% AER and the HSBC premier instant access savings account is a miserably 3.9% AER.

Any suggested strategies would be appreciated. We need to get better ISAs! But I am also willing to play the dripping feeding game with a good regular saver. We would prefer to keep all the money UK based. We look forward to hearing anyone's suggestions :T

Jake'sGran

For myself I decided that the drip feed arrangement with banks like Alliance & Leicester were just not for me. I watch rates all the time but prefer to keep it simple. I have just arranged a one year fixed rate ISA with Bradford & Bingley for my OH and paying 6.15% which I think is excellent. Unfortunately they will not accept transfers in from other banks. Saffron Bldg Society are paying 5.8% for cash ISAs. There have been a lot of changes recently so it might be a good idea to look at the best buy tables, on MSE and places like Moneyfacts. If you can get around 5.8% I think this is good but there is expected to be a base rate rise soon so some of the banks will be changing their rates again. Lately, I have had such poor service from more than one organisation that I have started to think that good service is better than
.05% more on the rate. I went through all my cash ISAs recently and found that I took one out with A & L last year paying 5.2%. I got them to put it in writing as their rates were always changing at the time. Blow me, according to their web site, it is now paying 5%. I've written and "they are looking in to it".

torbrex

A possible strategy could be this:
Deposit £2500 into A&L premier current account (6.5%), put the rest into ICICI (6.05%) and link the two for direct debits.
You then set up regular savers with A&L (12%), LTSB (8%) and whoever else, you can then transfer required maximum amounts to these accounts from ICICI via the current account at A&L and although you would lose days interest for the transfer you would be gaining the benifit of the high interest of the reg savers and meeting the t&c of the current account.
This is a savings plan and will not work if you need to withdraw from any account other than the one at ICICI, when any of the reg savers matures start again by transfering the money back into ICICI, this also goes for any extra savings that you might gather in from elsewhere.

I will be doing this plan myself in October when a fixed bond I have matures so if you try it please let me know how you get on.

Secret_Wookie

If you are a HSBC Premier customer you can take advantage of their 10% Regular Saver offer. Your ISA should also be on perferential terms and paying 5.25% AER.
You should also be able to get a better rate than advertised on your Premier Savings Account.

Again just looking at your current bank HSBC you can aslo get 6% with an online saver for your longer terms savings.

I personally wouldn't go near A&L due to their poor service.