Short term savings

Hi there,

I have a hefty amount (£400K) from a house remortgage that I need to place for about three weeks.

Do banks in general calculate interest on a daily basis and then pay it annually / monthly?

If so I guess i just need to find the highest rated instant access account?

Thanks

Simon

Replies

  • Archi_BaldArchi_Bald Forumite
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    NS&I, though not paying best interest, is your best bet for such a sum and timescale because they are the only place that guarantee your money. Other places will only guarantee £85K per person.

    NS&I pay you gross interest but you have to declare it to HMRC. For 15 days, they will pay you around £180.

    All other accounts will pay net interest after 20% tax has been taken off. You' be very lucky to get 1.5% anywhere, so you'd be looking at max £197 in non-guaranteed accounts, most likely somewhat less.
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