£5,000 - Where is best to save it with easy access?

Jo4

I have been asked to open an account for someone because they have £5,000 which they want to keep in their own name. They do not think they will be able to add to this amount but they will definitely want to be able to withdraw some of the money as they need it.

I did look at bank accounts because that is where the better interest rates are but the person will not have any direct debits or standing orders and they will not be paying in a set amount every month. They do want a card so they can access the cash at an ATM and they would like to earn interest on this amount. The person resides in Northern Ireland and therefore not all accounts are available here. They would like paperless statements and they want to be able to view their account online.

Can anyone tell me where would be best for this person to put the £5,000?

Dan83

Have a look on the bank account part of the forum, you will easy find everything you need to know

Jo4

Dan83 wrote: »

Have a look on the bank account part of the forum, you will easy find everything you need to know

I did look, perhaps I'll understand it better when this severe headache passes.

bigfreddiel

Open two Tesco current accounts, put £3k and £2k into each one and get 3%. It's paid monthly and you should receive about £12/month

Cheers fj

colsten

If you put £2.5K into each, you won't need to bother with skimming off the interest.

Eco_Miser

Tesco accounts are only available to residents of England, Scotland or Wales.

Does the person already have a bank account? If so, they can take the required amount out of the new account, then pay it back, all by standing order.

Ben91

bigfreddiel wrote: »

Open two Tesco current accounts, put £3k and £2k into each one and get 3%. It's paid monthly and you should receive about £12/month

Cheers fj

Surely it would be better to put 2k in a TSB current account for 5% interest?

bigfreddiel

colsten wrote: »

If you put £2.5K into each, you won't need to bother with skimming off the interest.

Good point, I like it fj

bigfreddiel

Ben91 wrote: »

Surely it would be better to put 2k in a TSB current account for 5% interest?

You could, as long as you fund it with £500 each month. You could setup a SO to pay it in and out if you want. This will produce about £6/month, a bit more if you don't pay tax.

There's so little in it that is why I suggested Tesco as its less hassle

fj

bigfreddiel

Eco_Miser wrote: »

Tesco accounts are only available to residents of England, Scotland or Wales.

Does the person already have a bank account? If so, they can take the required amount out of the new account, then pay it back, all by standing order.

Good point about location, but I assumed residency would be fine, but I don't understand the rest of your post, why do you need to pay anything back?

Eco_Miser

For accounts such as TSB that need monthly funding, take it out, then pay it back. Looks like I was answering a question I forgot to quote.