Instant Access Savings

Popeye84

Morning all,


I am looking for some advice in regards to the best options for an instant access savings account.


We currently have £70k in a current account but we are looking to move it to a different account so that we can get some form of interest on it (and potentially secure it a bit).


We will need to use the money over the next 6 - 12 months for the renovation of our new house so we will need easy access but we will also be adding around £1k a month to the account.


I am looking for some ideas on where best to put the money if possible please.


My wife has an ISA with around £20k in and I have one with £11k in. We will look to keep that there and obviously wouldn't want an ISA as we need access all the time.


Thanks in advance for your help

ColdIron

You could make a start by looking at the Top Savings Accounts link above

Popeye84

ColdIron wrote: »

You could make a start by looking at the Top Savings Accounts link above

Thanks for that.....simple solution and we are going with the Santander 123 account for the time being.

InvestInPoker

Yeah savings accounts are mostly **** at the moment, far better to troll the banks (and it is trolling) by getting all the best current accounts.


It is a bit more hassle than it is made out to be however and you will have to go through a slew of credit checks.

Chris75

Popeye84 wrote: »

Thanks for that.....simple solution and we are going with the Santander 123 account for the time being.

You have £70k to invest. Have you noticed up to £20k is the maximum amount that Santander 123 pays interest on?

Vortigern

Chris75 wrote: »

You have £70k to invest. Have you noticed up to £20k is the maximum amount that Santander 123 pays interest on?

They said "We currently have 70K"' so if a married couple they could have a sole account each and joint account. That takes care of 60K

LXdaddy

Chris75 wrote: »

You have £70k to invest. Have you noticed up to £20k is the maximum amount that Santander 123 pays interest on?

But with two of you there can be three accounts - one in each individual name and one as a joint account. You do have to meet the T&C so each account needs two direct debits and you have to deposit £500 per (acount) month into each account.

You still have £10K more than can earn interest in Santander so you can go for similar tricks with TSB Classic Plus account - £2000 each at 5%. These also need funding with £500 per account per (calendar) month (not sure about DD requirements)

Set up a Tesco account each and you can simply do a DD for £1 from each of the Santander and TSB accounts by both of you. to satisfy the DDs.

You can use standing orders to bounce £500 backwards and forwards between each 123 account and the coresponding TSB account.

There is still another £4K that's not earning interest so next stop could be a Club LLoyds which will pay 4% on £5K - but it does need funding with £1500 per month.

Personally I'd stick to Santander 123 and TSB because you are going to spend the £70K over the next 6-12 months so I'd not be too concerned about the £4k plus the additions you are making and the interest you are earning.

But if you are adding 1K per month and not spending anything in the next 6 months that is interest on £4K + the additional £1k + 3*40 + 3*7 per month = £7,200 approx @ 4% = about £20/month. Is it worth the additional setup effort for about £20/month for the next 6 months

Edit - Vortigern types quicker than me