Saving £18,000

jimmy*c

Afternoon,

I know it's probably a question asked a lot, but I'm looking to find out which account will be best for me to save £18,000 in over 18 months.

I know there are high interest current accounts but most only pay a promotional rate for 1 year.

I'll be saving £1,500 a month once my debt's gone (5 months).

Any advice?

xylophone

Open a Santander 123?

http://www.santander123.co.uk/?cid=ppc-ca-goo-br-santander%20123&gclid=CLivxs_YkcUCFcfMtAodTh4AXQ

YorkshireBoy

jimmy*c wrote: »

I know there are high interest current accounts but most only pay a promotional rate for 1 year.

Nationwide FlexDirect is the only one I know of with an introductory period (of 12 months).

TSB Plus (5% on £2K), Club Lloyds (4% on £4-5K), Santander 123 (3% on £3-20K), BoS Vantage (3% on up to £15K), and Tesco (3% on up to £6K) have no such introductory periods/rates.

jimmy*c

Thanks for your replies.

I am, admittedly, worried by the stories I've heard about banks setting off. I have the 123 credit card and I'd forever be on edge knowing that they could take it at any time, so slightly reluctant to open a 123 current account (would also be costing me £24 a year).

Thanks YorkshireBoy. It seems current accounts are the highest payers these days? I appreciate your input.

Could anybody vouch for any one of them in particular?

YorkshireBoy

You could go with some regular savers, eg FD, M&S, and HSBC which all pay 6% AER (on a total of £800 a month)...but all require their current accounts too, along with other 'hoops' to jump through.

They'd only cover your first 12 months though.

I can vouch for all of the above current accounts though, being as I have all of them!

Depends on how simple you want things...if really simple, then Santander is your best bet. I don't understand your setting off fear though. Are you saying you're in arrears with your 123 credit card?

jimmy*c

Hmm, thought that might be the way. Can't deposit enough and, even if I was allowed, I'd have to meet all their other criteria.

I'm not in arrears though, definitely not - Never have and never will be - I pride myself on being a good payer I just worry that if, at any point, they wanted their money back (eg the balance on the card) they could help themselves.

On the other hand, maybe it's a good idea for me to go for a promotional rate account, and move the savings at expiry of the promotion?

Eco_Miser

jimmy*c wrote: »

Hmm, thought that might be the way. Can't deposit enough and, even if I was allowed, I'd have to meet all their other criteria.

If you're talking about the Regular Savers, the idea with a lump sum is to dripfeed from a lower paying account each month, to get more interest.

jimmy*c wrote: »

I'm not in arrears though, definitely not - Never have and never will be - I pride myself on being a good payer I just worry that if, at any point, they wanted their money back (eg the balance on the card) they could help themselves.

Why would they do that, if you're paying them interest every month?

jimmy*c wrote: »

On the other hand, maybe it's a good idea for me to go for a promotional rate account, and move the savings at expiry of the promotion?

That's what a lot of people on this board do, and apart from the nationwide, all the current promotions are for an indefinite period that probably will last more than a year from now (some have lasted that long already).

jimmy*c

I don't pay any interest, it's 0% for the next 22 months. It's just me being a worrier. I will have a look for the best account following all you guys' helpful information.