Which Savings

kerri_gt

We have a sum of £ that we need instant access to but are looking to put into savings and earn a little but of interest in the meantime as we don't know when exactly we'd need the funds.

I'm torn between an ISA (low interest, bung it away - easy to manage) or Santander 1,2,3 where the interest would be higher (and cover the £5 monthly fee) but would need to be funded each month in order to meet the account requirements. Plus the account would need to be closed when we withdraw the funds.

My concern about the 1,2,3 is forgetting to fund one month, hassle when closing the account or the like but obviously the interest rate would be better.

What would you do?

masonic

I certainly wouldn't entertain using an ISA. Even a bog standard instant access savings account could potentially beat that option.

Santander 123 is an option. TSB Plus is another. Nationwide FlexDirect is a third. Open two account and split your savings between them. Set up standing orders in each direction so that you don't forget to fund them. Easy peasy.

Edit: also, on closing the accounts - switching has never been easier and causes the account to be closed as part of the process.

HappyMJ

kerri_gt wrote: »

We have a sum of £ that we need instant access to but are looking to put into savings and earn a little but of interest in the meantime as we don't know when exactly we'd need the funds.

I'm torn between an ISA (low interest, bung it away - easy to manage) or Santander 1,2,3 where the interest would be higher (and cover the £5 monthly fee) but would need to be funded each month in order to meet the account requirements. Plus the account would need to be closed when we withdraw the funds.

My concern about the 1,2,3 is forgetting to fund one month, hassle when closing the account or the like but obviously the interest rate would be better.

What would you do?

The easiest current account for £20,000 is the Santander 123 account. You would set up a standing order from your current account to this account and on the same day send the money back to your current account by standing order. Once set up you can set and forget.

To earn more money there are many more complex ways of setting it up. I earn 6% interest on quite a lot of my money but I do have several accounts with money being sent backwards and forwards and all over the place but it's well worth it for £300 a month in interest.

Eco_Miser

masonic wrote: »

Santander 123 is an option. TSB Plus is another. Nationwide FlexDirect is a third. Open two account and split your savings between them.

Open three accounts even, a sole each plus a joint.
This post all the higher paying bank accounts, so you can work out which options will best suit you.

kerri_gt

Thanks everyone for your replies - I hadn't thought about a SO in and back out of the 1,2,3 (brain fug). As we need to keep our credit rating clean atm and this is likely to be short term I'm not sure about opening lots of accounts - but 1,2,3 seems the way to go in the immediate future. Its going from a H'Fax Reward so already quids in with that one

jimjames

You've not said how much but if it's under £20k then there are far better options than the 123 account.

colsten

jimjames wrote: »

You've not said how much but if it's under £20k then there are far better options than the 123 account.

I'd say there are better options than the 123 for up to at least £30K for sole accounts, and more for joint.

jimjames

colsten wrote: »

I'd say there are better options than the 123 for up to at least £30K for sole accounts, and more for joint.

I agree but not everyone is as keen on multiple accounts as some of us. Simplicity leads to the 123 but it's not very viable if you only have £5k

kerri_gt

jimjames wrote: »

You've not said how much but if it's under £20k then there are far better options than the 123 account.

It's likely to be at the upper end of the interest scale for the 1,2,3 account. Out of interest what would you suggest for less than £20k?

colsten

kerri_gt wrote: »

Out of interest what would you suggest for less than £20k?

There are lots of choices for those with an open mind, and with a good credit history.

bigfreddiel

With a 123 account don't forget the two direct debits you need as well as the £500 per month funding.

Cheers fj