£4k to put in savings - where?

thenewbee

Hi all

I've read through Martin's pages on savings and ISAs but frankly I'm going around in circles. My father is giving me £4,000 as a wedding gift, and I was hoping someone could tell me where's the best place to put it?

I don't currently have an ISA, and can lock it away for 1 year, maybe 2 at a push.

Which is the best account for me? I don't want to do one of the current account ones as it's too much hassle moving money in and out to meet the rules for them.

Thank you in advance to anyone who can help! :beer:

YorkshireBoy

Who do you bank with?

eskbanker

Read the MSE savings fountain article, start looking at the top of the fountain (which is the current account option) and stop when you find one that you feel comfortable with!

thenewbee

YorkshireBoy wrote: »

Who do you bank with?

I have a current account I use for my business with Natwest, and a joint current account with First Direct (using their regular saver linked to this)

YorkshireBoy

FD don't have anything useful. Nor do NatWest.
You don't want to switch money between/around 2 (or more) current accounts.
So your choice is a savings account or an ISA.

Having read the savings and ISA articles, why are you "going round in circles"? You simply pick the one with the highest net return don't you?

jimjames

As a couple £2k in TSB each at 5%.

Job done.

But if 5% is too much hassle setting up a SO to move £500 between accounts once a month then get an ISA at 1%. Your choice but I prefer the extra interest for a few mins setup time.

xylophone

You and your spouse to be each open a TSB Classic with £2000.

He sets up an SO to move £500 to your account and you set up a standing order to move £500 to his account on the same day each month.

You collect the interest and deposit it where you will.

thenewbee

Xylophone & Jimjames thank you for that - think this is what we'll do! Much appreciated

YorkshireBoy

jimjames wrote: »

As a couple £2k in TSB each at 5%.

Job done.

But if 5% is too much hassle setting up a SO to move £500 between accounts once a month then get an ISA at 1%. Your choice but I prefer the extra interest for a few mins setup time.

£156.48 vs £40...per year (assuming BR tax)

It's a no brainer surely!?


EDIT: It seems it is.