Any savings accounts that better current accounts?

krazyk

It seems that the best place to save money is still in one of the various high-interest current accounts. Is this the case? I can't find any ISA, savings account or regular saver accounts that compete.

I've put £20k into a Santander 123 current account and will keep that at £20k as best I can. I have a further £27k I'm struggling to decide where to put. Lloyds Club account seems the second best option, which will take £5k. I also have a Nationwide FlexDirect account, which pays 5% up to £2.5k. So still have £20k to put somewhere.

I've had a look as ISAs but they are very low rates and with the upcoming April change in personal allowance they don't seem to compete too well (though know they have advantages other than their tax freeness).

I'm looking to use the money in 2-3 years to buy a house so looking to store it away until then and earn interest. I also should be able to afford to put at least £500 a month of my salary away on top of this (possibly up to £700pm). I'll probably transfer this into the Santander account to meet their transfer caveat then transfer it back out to elsewhere. Where, I'm am not sure.

Advice most welcome.

Eco_Miser

There are regular savers at 6%, 5% and 4% which match the current accounts. You can put nearly two grand a month away. More if you include Halifax's Help To Buy ISA. Here's a list of the accounts to consider

eskbanker

krazyk wrote: »

It seems that the best place to save money is still in one of the various high-interest current accounts. Is this the case? I can't find any ISA, savings account or regular saver accounts that compete.

Really? I don't think you can have looked very hard, try the market-leading accounts at http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Sam_J12

There are regular monthly savings accounts that are very good, but these require current accounts to be open with the same bank. Off the top of my head:

First Direct 6% £300/month
M&S 6% £250/month
Nationwide 5%, £500/month
Lloyds 4% £400/month

krazyk

Sam_J12,

Yeah I believe they all need current accounts and can only put £500 a month away when I have £20k to put away.

krazyk

eskbanker,

Well regular saver accounts don't allow lump sums to be put away. So I cannot put £20k into one of those to earn the 6% on the whole amount. The highest monthly limit I've found if £500 with the Nationwide Flexclusive Regular Saver account.

Are there regular saver accounts that allow for lump sums higher than this?

krazyk

Eco Miser,

I'm aware of these regular saver accounts but cannot find any that allow lump sums up to £20k to be put in them.

BTW, think you've missed a link there?

eskbanker

krazyk wrote: »

eskbanker,

Well regular saver accounts don't allow lump sums to be put away. So I cannot put £20k into one of those to earn the 6% on the whole amount. The highest monthly limit I've found if £500 with the Nationwide Flexclusive Regular Saver account.

Are there regular saver accounts that allow for lump sums higher than this?

You were the one who said you were looking at regular saver accounts! As you say, they're (unsurprisingly!) better suited to regular saving than lump sums but you did say you were looking to save £500-700 per month as well as your lump sum.

Read Eco Miser's link in post #2 (it is there!) for plenty of ideas....

Eco_Miser

krazyk wrote: »

Eco Miser,

I'm aware of these regular saver accounts but cannot find any that allow lump sums up to £20k to be put in them.

Of course not, they're REGULAR savers! But using all of them puts away £2k a month, using all the current accounts over £50k.

krazyk wrote: »

BTW, think you've missed a link there?

No, I think you have. Click the blue text.

xylophone

Three BOS with Vantage (if you can get them) plus two Tesco?

krazyk

eskbanker,

I said I was trying to find a place to put up £20-7k and can't find any savings account that competes with current accounts. And said I'll have £500 to save per month too, but specified this would probably be used to transfer into the Santander account to meet their transfer caveat.

It could certainly be put into a regular saver account as you suggest though. But I'll have to check if I need a current account as per Sam_J12 post.

Ta.