Advice on where to put savings of £10,000-£15,000

Pinkywink

If I wanted to put £10,000 to £15,000 away for about a year, what are my best options? I'm clueless with savings. This money has been sat in a basic bank account for nearly 2 years but I will probably be investing it in our house when we move in 1 or 2 years.

Mistermeaner

I would go for an isa. But I don't know my much so see what others say.

I do know you stick 15 k per tax year in an isa and get tax free interest

Having recently shopped around a bit I went with a nationwide cash isa that pays decent interest I think 2.5 pc and is basically instant access


Hope this helps

Mojisola

Santander 123.

heloid

+1
Santander 123. Pays more than all ISA's at the moment. You can always put the sum in to an ISA next year if you need to and I imagine the high interest rate on the 123 will stick around for a few more years.

Steve_xx

Given that you want to do this for just a year and if you can be bothered opening multiple accounts, then this would be a good solution for you, interest wise:

Club Lloyds Current Account pays 4% interest of balances between 4 & 5k. You need to pay in £1500 in each month to avoid the £5 monthly fee but you can just move that in and out within seconds! There are additional benefits to this account, ie free magazine of your choice, cinema tickets or Gourmet Society discount card.

You could then open two TSB current accounts and deposit 2k into each of them. You need to pay £500 a month into each but you can simply move £500 from one account to the other to satisfy that. You'll get 5% interest on these accounts.

The above will take care of £9000 and for the remainder you could, as somebody else suggested open a Santander 123 account. They pay 3% on balances between 3 and 20k.

For the term you are talking about it's not worth considering an ISA at the moment. However, if we get to March 2015 and you plan to keep this money longer than a year you might reconsider putting some/all into an ISA before the tax year ends. Or, should interest rates move up on ISA's between now and April next year, then again you might consider an ISA to be more beneficial.

Pinkywink

Thanks for all your help and replies.

I'll look into the Santander 123 and the Lloyd sand TSB this week.

I really appreciate all your help.

Pinkywink

Sorry to be a bit dense about this! The money is currently sat in a halifax current account. How quickly can I get access to it and move it out? Is it easier to go into the above banks to set them up or do on line?

colsten

ggb1979 wrote: »

I would go for an isa. But I don't know my much so see what others say.

I do know you stick 15 k per tax year in an isa and get tax free interest

Having recently shopped around a bit I went with a nationwide cash isa that pays decent interest I think 2.5 pc and is basically instant access

An ISA is the worst choice in the circumstances, as currently taxable accounts pay more interest after tax than any ISA. The 2.5% Nationwide ISA is no longer available for new applications but in any case would be entirely unsuitable as it is a Regular Saver ISA (max £1,250 a month).

The best options for the OP are current accounts.

colsten

Pinkywink wrote: »

Sorry to be a bit dense about this! The money is currently sat in a halifax current account. How quickly can I get access to it and move it out? Is it easier to go into the above banks to set them up or do on line?[/QUOTE

Simple steps, assuming you have online access:

1. you open one or more current accounts yourself. Online application would be my preference. Don't request any account switch
   
   
2. once you have access to the new account(s): you make one or more faster payments from your Halifax to your other current account(s). Money will usually arrive within 2 hours, may be faster. Make sure you specify the correct sort code/account number - perhaps make £1 test paymen(s) before you send larger amounts

Pinkywink

Wow is it that easy? I'll have a go this afternoon

Mistermeaner

My understanding was that ISA's are generally preferred for their tax benefits over a high interest current account - as a high rate tax payer doesn't a 3% current account become a 1.6% account after tax (or 2.4% for low rate payers) - both of which can be generally beaten / matched with an ISA, plus you have the benefit of building on your ISA pot if you don't withdraw for whatever reason.