Savings

jimjames

mauriceuk wrote: »

i dont have any money to put in to any account. This is just 4000 that i have recently inherited.

You've got £4000. Or have you? You've either got money to put into an account or you haven't, I don't understand why you're saying you have no money?

eastofeden

I think the OP might be saying they only have an inheritance of £4000, with no means of transferring additional money through/ between accounts. OP you don't need additional funds, for the third time, see Post 4!!!

mauriceuk

Sorry if i was being unclear but this is a one off payment i have been given , therefore i was advised a cash isa would be best place to put this money. I dont have money to transfer monthly. Cheers

YorkshireBoy

mauriceuk wrote: »

i was advised a cash isa would be best place to put this money.

Poor advice! Best advice is in post #4 (I think that's the 4th mention!).

B_G_B

mauriceuk wrote: »

I dont have money to transfer monthly.

Actually, you do. You can transfer your money, or part of it, as many times as you like between accounts. Take another read of post 4.

SevenOfNine

pinkdalek wrote: »

I was trying to make it as simple as possible for the OP. If you want to move money around each month, jump through hoops to get an extra 1% or so then fine.

I haven't "jumped through hoops" to get extra interest, it's perfectly simple.

I opened 2 TSB Classic Plus accounts on line. Stuck £2000 in each & set up a standing order in both a/c's for the required £500 which must be 'paid in' each month - as follows:

TSB account 1, standing order for £500 to TSB account 2 every month on the 2nd.

TSB account 2, standing order for £500 to TSB account 1 every month on the 2nd.

The above method maintains the 2 lots or £2000 meets the £500 paying in requirement, earns 5% AER (I don't pay tax, but even with tax it beats any ISA), without needing to bounce cash from elsewhere in & out. The 2 a/c's just feed each other.

With a fair amount of help from MSE users explaining it to me (a previous ISA fan & a bit of a financial numpty), I've now got 8 current accounts, earning 3%, 4% & 5% interest. I do have ISAs as well, but they are not my first choice any more.

Colsten gave simple, appropriate advice to get the best return for OP & no harder than opening an ISA, unless OP has a rubbish credit rating maybe.

YorkshireBoy

SevenOfNine wrote: »

TSB account 1, standing order for £500 to TSB account 2 every month on the 2nd.

TSB account 2, standing order for £500 to TSB account 1 every month on the 2nd.

My approach is similar, but my SOs deal with the interest too...

£500 TSB1 > TSB2
£506.50 TSB2 > TSB1
£13 TSB1 > 3% account held elsewhere

...all on the 3rd of the month.

SevenOfNine

Yep, & mine (I thought OP might have enough to digest.......when I think back to my first foray into options other than ISAs, seemed a bit mind boggling for something that's actually pretty simple).

For some of my current a/c's that need DD's set up, I use Tesco savings a/c's to scoop off the interest (then at intervals I move it from Tesco as the interest is rubbish).

All thanks to MSE forum users helping me get to grips with it.

xylophone

OP

As in post 4 what you might do is:

Open a TSB Classic Plus account on line with £1900. http://www.tsb.co.uk/current-accounts/

This pays 5% on up to £2000.

Make sure that you opt for paperless statements and correspondence.

Open a Nationwide Flexdirect account with £1100. This will pay 5% for one year only on up to £2500. http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

Set up a standing order for £1000 from TSB to Nationwide and a standing order for £1000 from Nationwide to TSB to take place on the same day each month - the mid month might be best as it keeps you clear of month beginning/end problems.

If you do not pay tax complete an R85.

Obviously you need to keep over £1000 in each account to do this but the above plan gives you the freedom to access some money over the coming year, earn a good rate of interest and think again next year.

Otherwise see http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Johnny_Doe

Don't forget (although it's a bit of hassle) you can switch your existing bank account for an added incentive...