Savings Accounts - Three months only.

Satos

Hello all,

For the past couple of months my bank account has been sitting at a healthy balance, this is good, however it's been sat there doing nothing!

I've put £750.00 in a Premium Bonds account, I know, 0% interest but, it does stand the chance of winning something, all be it a small chance.

A further £500.00 has been put in to a NS&I savings account, 1.10%, dismal but still better than my bank account.

QUESTION. Does anyone know of any high interest savings accounts, more specifically savings account which I can close in three months time? Another £650.00 is available for this.

I'm hoping to go to the Japanese Grand Prix this year, the cash in my account isn't getting touched until July, I may as well put it to work.

I've already thought about the stock market but it's so over inflated at the moment and I admire Warren Buffett, if I'm not prepared to put my money on the markets for at least 10 years there is no point.

ColdIron

Stick it in a TSB Plus account at 5% on £1,900 for about £19 after tax, gazillions of posts about it on the board

Edit: maths corrected

G_M

£650 will earn you about £8 at 5% over 3 months.

Assuming you don't pay tax!

Is it really worth bothering about....?

AndyPK

Have you got a santander 123 current account. You can save £20K in this.

or a lloyds classic. you can save approx £5K in one of these.

These give good interest while sitting in a current account. Win Win.

eskbanker

AndyPK wrote: »

Have you got a santander 123 current account. You can save £20K in this.

or a lloyds classic. you can save approx £5K in one of these.

These give good interest while sitting in a current account. Win Win.

Lose lose if OP went down the route of a Santander 123, as he/she only has £650 to find a short-term home for, which wouldn't get any interest in a 123, while incurring the £2 monthly charges! The earlier suggestion of a TSB Classic Plus is far more appropriate in the context of this thread....

teddysmum

At least you can have some fun with premium bonds, the loss in interest being less than the cost of lottery tickets and it's easy to withdraw your money, when it's needed.

jimjames

teddysmum wrote: »

At least you can have some fun with premium bonds, the loss in interest being less than the cost of lottery tickets and it's easy to withdraw your money, when it's needed.

Not as easy to withdraw as a current account. And you aren't in the draw for a period when putting money in (and out?)

If you want some fun why not just buy lottery tickets with the interest?

Other way to maximise your return is to use a Halifax account too. Move money between TSB and Halifax each month to add £5 to your interest.

Total return would be the £19 from TSB plus £15, you won't get more than this risk free.

£34 on £1900 in 3 months equates to 7.2% equivalent annual interest.

mad_rich

As has been said upthread, you're looking at a maximum of £19.00 interest after tax.

Certainly not to be sniffed at - and who here wouldn't pick up a £20 note we saw lying in the street?! - but don't spend a day of your life agonising over which account to put it in!