Best Savings Accounts For Over 30k?

pokerjk

Hi,

I would appreciate your opinion on this.

I was getting 2.5% on around 30k in a Halifax reward saver but the rate changes to 0.5% in a week so I need to change.

It seems the interest rates are really low at the moment for instant access? e.g. 1.x%. It needs to be instant access as I am currently looking to buy a house so am not sure when I will need the money.

My ISA is maxed out which is with Santander at 2.5%.

Any advice would be appreciated.

Thanks

adindas

pokerjk wrote: »

Hi,

I would appreciate your opinion on this.

I was getting 2.5% on around 30k in a Halifax reward saver but the rate changes to 0.5% in a week so I need to change.

It seems the interest rates are really low at the moment for instant access? e.g. 1.x%. It needs to be instant access as I am currently looking to buy a house so am not sure when I will need the money.

My ISA is maxed out which is with Santander at 2.5%.

Any advice would be appreciated.

Thanks

You could get a higher rate by splitting it into several accounts of £2500, £5000.

But If you do not want too much hassles, splitting it into 2x£15,000 of Santander 123 Account is the easiest way to go. There is monthly fee of £2 each month on each ac but you will gain from high interest rate of up to 3% + cash back on utility bills paid on DD or on petrol.

Here is the link
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#santander

YorkshireBoy

pokerjk wrote: »

I was getting 2.5% on around 30k in a Halifax reward saver but the rate changes to 0.5% in a week so I need to change.

You've left it very late!

First things first...when the rate drops you need to ask them to switch you to their current Online Saver offering. This will at least put you on 1.3% AER until you find something else.

These days, some of the best returns are to be found in current accounts. Strange but true! However, you may not want the hassle of switching DDs to Santander (as suggested by the previous poster), or the hassle of opening 6 current accounts (3% AER on £5K in each with Lloyds, TSB, and BoS).

Nationwide FlexDirect may be an option, but 5% AER only guaranteed to one account with a £2.5K maximum (although many on here have 3-4 accounts which all pay 5% AER).

But...if the house purchase is imminent(?), then maybe best just to leave it with Halifax? The difference between that and 3% AER (after BR tax,) is around £34 per month.

pokerjk

Thanks for your help both of you.

Splitting the money into lots of little accounts isn't really the way I want to go, but I see why you are suggesting it so thanks.

I think I will just go ahead and do what YorkshireBoy said and keep it where it is but increase it to 1.3% once the rate goes down. I just worry that it may be 6-12months before I find the house I want.