Where should I put £10k to generate interest?

DiNZi

Hi all,

My brother has £10k that he'd like to put into an account that generates some interest every month, any advise?

I doubt he'd be drawing in any money into the account, very rarely.

Cheers!

Temrael

I'd look at 2 x TSB accounts (£2k in each at 5%, one single & one joint) and a Club Lloyds account (£5k at 4%).

The interest is teired at Lloyds so you'd get less than 5% if you put the remaining £1k in another one.

AlanP_2

Interest paying Current Accounts from the likes of TSB etc.

There is a thread on hear about it as well as information on the main MSE site that covers who offers what rates with what criteria and limits.

Paully232000

DiNZi wrote: »

Hi all,

My brother has £10k that he'd like to put into an account that generates some interest every month, any advise?

I doubt he'd be drawing in any money into the account, very rarely.

Cheers!

I have just opened some and the best ones i found were:
TSB at 5% £2000
Nationwide 5% (for 12 months) £2500
Club Lloyds 4% £5000

there is your near £10K invested at £36/month interest

DiNZi

He'd put it into current accounts but you don't get the interest unless you have DD's and deposit money every month.

Isn't there any other type of account I can use?

YorkshireBoy

DiNZi wrote: »

He'd put it into current accounts but you don't get the interest unless you have DD's and deposit money every month.

Isn't there any other type of account I can use?

How about a savings account?

Temrael

TSB (the highest paying) can be done without DDs and just a Standing Order that moves money from one account to the other. Once setup it takes care of itself

savings_my_hobby

DiNZi wrote: »

He'd put it into current accounts but you don't get the interest unless you have DD's and deposit money every month.

Isn't there any other type of account I can use?

to deposit money every month is very easy, you can cycle the money from account a, to account b to account c and back to account a. do this all in the same day (middle of the month is best). you can even set up a standing order. This way you will only need to max out each account to maximise interest.

to avoid direct debits use
- TSB Classic pius
- Nationwide FlexDirect
- Bank of Scotland classic

on £9500 you should receive around £294, this is after tax which will be automatically deducted and works out at 3.09% net.
the nationwide account only pays good interest for one year hope this helps

enjoyyourshoes

If he is 65+ try NS&I 65+ bonds ?
3 year term you get 4%
Hedging your bets against other current accounts reducing their interest in forthcoming years