Best return on 15k?

GA7_2

Say you've got 15k in a savings account. What brings me back the most money per month, considering that I will not add/remove any money from the 15k pot. My friend recommends santander who says they've got a good rate and seems to think that £15,000 will return £37.50 per month ... is that true?

DragonQ

If you mean no-risk, then 3% is the best you'll get right now. Assuming you're a basic rate tax payer, that becomes 2.4%, so £360 per year or £30 per month.

matttye

http://www.cbonline.co.uk/personal/current-accounts/direct/ 4% on up to £3k
http://www.ybonline.co.uk/personal/current-accounts/direct/ 4% on up to £3k
http://www.nationwide.co.uk/current_account/flexdirect/default.htm 5% on up to £2.5k
http://www1.firstdirect.com/1/2/savings/regular-savings-account 6% Regular Saver, can deposit up to £300 per month.

Edit: your friend is right though. Just sticking it all in a Santander 123 will pay £37 per month.

Archi_Bald

matttye wrote: »

Just sticking it all in a Santander 123 will pay £37 per month.

Only if you were able to give them an R85 because you are eligible for gross tax. By default, Santander, like any other bank or BS, will automatically withhold 20% tax from any interest paid, except on ISA accounts. Making it the £30 that DragonQ mentioned.

Worth also noting that all the accounts listed have pre-requisites fro paying interest.

matttye

Archi_Bald wrote: »

Only if you were able to give them an R85 because you are eligible for gross tax. By default, Santander, like any other bank or BS, will automatically withhold 20% tax from any interest paid, except on ISA accounts. Making it the £30 that DragonQ mentioned.

Worth also noting that all the accounts listed have pre-requisites fro paying interest.

I was just going by what their online calculator says, but yes it's apparent they're showing gross interest when I calculate it manually.

15000*0.024/12 = £30 per month
- £2 per month fee = £28 per month.

Frozen_up_north

GA7 wrote: »

Say you've got 15k in a savings account. What brings me back the most money per month, considering that I will not add/remove any money from the 15k pot. My friend recommends santander who says they've got a good rate and seems to think that £15,000 will return £37.50 per month ... is that true?

If you are thinking of the Santander 123 current account, you need to meet their terms and conditions - ie pay in a minimum of £500 per month, have at least two direct debits on the account and you also have to pay £2 per month for the use of the account. So, your intention to not add/remove any money wouldn't work for this account.