What is the best interest rate at the moment?

SantaKlaus

I've been looking online and can't really find anything. I'm looking to put away about £80-£100 a month for the next 25-30 years, so i'm looking for any kind of non risk savings (Reg savings, instant access, limited access, fixed term, anything!) that has a good rate (3% or over).

Is there anything that is 3%ish (over 2.5%) these days? I don't want something like the nationwide regular savings account because i cannot increase my monthly savings, so the nationwide reg savings is unsuitable as while you can get 2%, you have to be putting in £1000 per month lol. I can only put in £100 max.

Any ideas?

dbarcl10

SantaKlaus wrote: »

Any ideas?

In the short term, probably best looking to open a high interest current account e.g. nationwide 5%, IF you have £1,000 you could transfer in even just for a few mins each month. Don't use it as a current account but as a savings account, building up bit by bit each month. It's 5% for one year, in which time you'll have saved £1,200 which you could put into an ISA next year if the rates pick up.

Certainly at that value each month, you'll be hard pressed to find a safe savings method paying anywhere near these current accounts.

Glen_Clark

just click the link at the top of this page - banking/saving - top paying accounts.:(

Gromitt

SantaKlaus wrote: »

i'm looking for any kind of non risk savings (Reg savings, instant access, limited access, fixed term, anything!) that has a good rate (3% or over).

First Direct regular savings - 6%. Save upto £300/month for 12 months and then check whats the best again. Yes it requires a FD current account but you don't need to switch (unless you want a joining incentive).

opinions4u

I've been looking online and can't really find anything. I'm looking to put away about £80-£100 a month for the next 25-30 years, so i'm looking for any kind of non risk savings (Reg savings, instant access, limited access, fixed term, anything!) that has a good rate (3% or over).

You are insane to even consider deposit accounts for 25 years of investing. Inflation and taxation will destroy the value of your savings.

Look at stocks and shares ISA and pensions with lower risk funds.

SantaKlaus

opinions4u wrote: »

You are insane to even consider deposit accounts for 25 years of investing. Inflation and taxation will destroy the value of your savings.

Look at stocks and shares ISA and pensions with lower risk funds.

Currently looking at stocks and shares ISA but they don't seem much different % wise to the higher savings accounts i've been looking at, Or they dont allow more then one deposit in, which is no good for me as i have no savings right now, so i dont have a large enough deposit to put in, i want to make regular deposits transfered into an account over the next 25-30 years. i'll look more into it later on to see what i can find. thanks:T

SantaKlaus

Gromitt wrote: »

First Direct regular savings - 6%. Save upto £300/month for 12 months and then check whats the best again. Yes it requires a FD current account but you don't need to switch (unless you want a joining incentive).

This looks like a winner, i'll apply for one after i have completed on my house purchase. thanks :T

SantaKlaus

Glen_Clark wrote: »

just click the link at the top of this page - banking/saving - top paying accounts.:(

Thanks, i missed that, it looks all jumbled together haha, it would help if the site was more reader friendly. :T

jimjames

SantaKlaus wrote: »

Currently looking at stocks and shares ISA but they don't seem much different % wise to the higher savings accounts i've been looking at, Or they dont allow more then one deposit in, which is no good for me as i have no savings right now, so i dont have a large enough deposit to put in, i want to make regular deposits transfered into an account over the next 25-30 years. i'll look more into it later on to see what i can find. thanks:T

Not sure which S&S ISA(s) you are looking at - might be handy to know but pretty much all of them will allow you to invest monthly and most start from £50 but you can stop and start at will. A S&S ISA is probably one of the most flexible ways you can invest as unlike a regular saver you can stop if you want and can withdraw money if you need to, although it should be considered long term.

You might also not be understanding S&S ISAs properly. They don't pay interest like a savings account so I'm not sure how you are comparing the % that you've mentioned.

A S&S ISA is just a wrapper and can have any number of investments inside it - the return is dependent on what is in the ISA - so what were you looking at? For example the UK stock market FTSE100 last year returned 15%, the FTSE250 29% and Japan 57%. That sounds a lot more than any cash account.

SantaKlaus

jimjames wrote: »

Not sure which S&S ISA(s) you are looking at - might be handy to know but pretty much all of them will allow you to invest monthly and most start from £50 but you can stop and start at will. A S&S ISA is probably one of the most flexible ways you can invest as unlike a regular saver you can stop if you want and can withdraw money if you need to, although it should be considered long term.

You might also not be understanding S&S ISAs properly. They don't pay interest like a savings account so I'm not sure how you are comparing the % that you've mentioned.

A S&S ISA is just a wrapper and can have any number of investments inside it - the return is dependent on what is in the ISA - so what were you looking at? For example the UK stock market FTSE100 last year returned 15%, the FTSE250 29% and Japan 57%. That sounds a lot more than any cash account.

i think i got it wrong lol i was on money super market website and read it wrong:

http://www.moneysupermarket.com/investments/stocks-shares-isas/lower-risk/

haha i thought the 1.4% was the interest rate but it is actually the annual charge!

F1F93

SantaKlaus wrote: »

This looks like a winner, i'll apply for one after i have completed on my house purchase. thanks :T

Beware the monthly charges:

Banking with first direct usually costs £10 a month, but we'll waive the fee if you pay in at least £1,000 to your 1st Account each month or maintain an average monthly 1st Account balance of £1,000 or hold a selected first direct additional product. For new customers we waive the fee for your first six months.

Simply put:
1) Pay in £1000 a month (then out again the same day)
2) Keep £1000 in there permanantly, or
3) Open an e-isa, keeping a pound in there to keep it open.

If you have a grand all the time, I'd do 1) and set up a standing order in and out, but its up to you .