Best savingsaccount for small amount of money

melysion

I'm looking to put up £20 a month in a savings account. I'm happy for the money in the account not to be immediately accessible if it means I can get a higher rate of interest.

Any recommendations on what savings account might be suitable most appreciated. I realise that £20 a month isn't a lot

jimjames

No savings account will pay much.

You'll get a current account that pays 5% up to £2000. But you'd need to pay in £500 each month. That doesn't need to stay in the account for any length of time - it can come straight out again.

colsten

jimjames wrote: »

That doesn't need to stay in the account for any length of time - it can come straight out again.

Or it could come out and go straight back in again :cool:

Aretnap

If you can stretch to £25 (minimum) per month you can get a regular saver at up to 6%, but to get the best rates you (a) have to have a current account with the same bank, (b) commit to putting in at least the minimum amount each month and (c) not withdraw your money for a year.

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Otherwise you're probably best to look at current accounts. TSB Classic Plus pays 5% on balances of up to £2000 but requires that you pay in £500/month; if your net monthly income is more than £500 you could set up a standing order to pay in £500 on payday, then immediately transfer £480 back out.