5000 to save immediately, 900 pcm additional, best place to save?

megaginge

If done to death please simply link me to any useful threads and I'll not waste anyone's time! Did search but the reason my query MAY be unique is we're approaching the end of a tax year and want an idea what to do with initial lump sum now ...


So I have 5k in a reserve account (Pathetic 0.25pc interest) and want to maximise what this can do for me, I will however need semi-regular access to this cash.

I am a higher rate tax payer.

Is my best option just an ISA? To throw the money into a new ISA before 1st April, and then top it up at 400 pcm after that? What would I then do with the other 500... two of the linked regular savers, perhaps First Direct and Santander?


Is it worth getting my OH to save instead of me?, she's a regular rate tax payer. She standing orders money to my account which I then sqirrel away purely as it's me who handles the house finances ...

I don't think I'd be earning more than 500 a year in interest, if I save the very max that's 11,800 which at 3% AER is sub 500...



Sorry guys, I've got a vague idea of what I should do (IE, ISA and 2 savings accs) just wonder if I should be doing something 'better'...


ps, though I do have a mortgage, it's a wedding fund we're saving for, so hence savings rather than payment of debts!

Ta
Dave

grumbler

I don't see why the end of tax year is of any importance as ISAs are pretty much useless now.
The best you can get on £5K is 5%, but you'll need 2-3 accounts and some efforts.
4% on full £5K you can get at Club Lloyds.

>> Top interest-paying accounts

For £900 p.m. regular savings accounts are best where you can get up to 6%, but again, you'll need more than one account:

• Regular Savings

Cisco001

Do a search at the forum for '5% saving loophole'

Also, will you be happy to use regular saving?

xylophone

You could open a Nationwide Flexdirect current account each and a Flexclusive regular saver each.

You would need to cycle in/out £1000 monthly to each from an account with another provider.



You could open a sole TSB Classic Plus each and a joint Classic Plus which gives access to the regular saver.

diamonds

TSB 5% current account with a 5% regular saver

Santander current account with a 5% reg saver

Halifax Reward with 4% ISA

Nationwide with 5% reg saver

Tesco 3% current account

Lloyds Club (various rates re balance)

just some of the offerings...

badger09

diamonds wrote: »

TSB 5% current account with a 5% regular saver

Santander current account with a 5% reg saver

Halifax Reward with 4% ISA

Nationwide with 5% reg saver

Tesco 3% current account

Lloyds Club (various rates re balance)

just some of the offerings...

That would be the HTB ISA, for which OP isn't eligible:cool:

megaginge wrote: »

ps, though I do have a mortgage, it's a wedding fund we're saving for, so hence savings rather than payment of debts!

OP, forget a cash ISA. Have a look at the links in grumbler's post. Don't forget your fiancee can also make use of these accounts;)

Katiehound

HSBC & M&S have regular monthly savers paying 6%

Lots of the a/cs allow you to have one each and one joint account. (Not the ones I quote above if I recall correctly!)

Lloyds Club pays 4% on £5000 balances, plus there is also a regular monthly saver also paying 4%

LXdaddy

And First Direct offer a monthly saver paying 6% on up to £300 per month.

megaginge

Thanks all!

Lloyds club, linked regular saver as well as moving my current account from Natwest to FD seem the way to go for now ... M&S as well maybe ..

I'll get on this once my mortgage nightmare is resolved... One thing at a time ...

badger09

megaginge wrote: »

Thanks all!

Lloyds club, linked regular saver as well as moving my current account from Natwest to FD seem the way to go for now ... M&S as well maybe ..

I'll get on this once my mortgage nightmare is resolved... One thing at a time ...

I haven't read all your other threads, but I really do sympathise. Hope you get it sorted soon.

As long as you don't apply for overdrafts with your new current accounts, and don't apply for too many (tape measure for a piece of string anyone?:cool:), this shouldn't have any impact on your mortgage negotiations, so why not bag at least one of the switching incentives now;)

Mike_320

If its for a wedding fund remember you will not be able to touch the money going into FD or M&S monthly saver for 12 months.

Another option to the Lloyds club would be 3xTSB plus (solo for you and your OH and a joint) for £6000 savings. Or 3x Nationwide Flex for £7500 (however 1 year only at 5%)

You could also open TSB reg saver with these for 2x £250pm (they are 5% so less than FD or M&S but allow withdrawals), I'm not sure if your allowed a third joint one for reg saver. The Nationwide reg saver allows £500pm and again you can withdraw without losing interest.