Lump sum but may need access

jonnyhinch

Hi, I have £5000 to put somewhere and earn as much interest as possible. The catch is that i may need to access some or all of the money in the near-ish future (maybe within the next year).

I would also like to keep it separate from my current account, so high interest current account which require a minimum monthly deposit may not be suitable.

Where is the best place to put the money?

Thanks
Jonathan

eskbanker

A high-interest current account is likely to be suitable - satisfy any minimum monthly deposit requirement by transferring money back and forth between it and your existing account.

Other options are available of course but are likely to earn you less interest, see the quick link above labelled 'how to start saving' for an analysis of your options....

jimjames

Does it differ from the person who asked earlier? Even the same amount

https://forums.moneysavingexpert.com/discussion/5637205

Current accounts are definitely the place if you want most interest

jonnyhinch

OK thanks.

So with regards the new current account, as long as I transfer the minimum requirement, leave for a day, then transfer it back out, then that will satisfy the requirements?

From what I've looked at, nationwide flex direct has the highest rate, but only on £2500. Should I then open another account for the rest?

jonnyhinch

Jim James- the only difference is that I may need access, so don't want to lock it away in a regular saver for a year or more and risk losing the interest if I need the money

jimjames

jonnyhinch wrote: »

So with regards the new current account, as long as I transfer the minimum requirement, leave for a day, then transfer it back out, then that will satisfy the requirements?

That would work but why do you need to leave it a day? Does your bank specify when you can spend your wages that are paid in? You can move the money back out immediately

jonnyhinch wrote: »

Jim James- the only difference is that I may need access, so don't want to lock it away in a regular saver for a year or more and risk losing the interest if I need the money

So current account is definitely the answer for best interest

jonnyhinch

I was think I could set up a monthly payment to automatically move the money out one day then back the next, rather than manually doing it each month

teddysmum

jonnyhinch wrote: »

OK thanks.

So with regards the new current account, as long as I transfer the minimum requirement, leave for a day, then transfer it back out, then that will satisfy the requirements?

From what I've looked at, nationwide flex direct has the highest rate, but only on £2500. Should I then open another account for the rest?

You don't have to leave the money until the next day. If you are willing to do manual transactions (giving the most control) you can pay in then instantly transfer out again).


The problem with other accounts is that they need direct debits going out as well as the inwards transfers, though this is only a recent requirement for Tesco and TSB, who probably want to deter those of us who use the current accounts as instant access savings accounts.


If you have spouse or partner , you could have three Nationwide accounts between you, so covering up to £7500; two sole and one joint.

badger09

jonnyhinch wrote: »

I was think I could set up a monthly payment to automatically move the money out one day then back the next, rather than manually doing it each month

As others have said, no need to leave it there for longer than a nano second;)

In addition to Nationwide FlexDirect, you can open a Flexclusive Regular Saver - £500 per month @ 5%:)

chockydavid1983

Yep, set up the SO's for the same day.
Nationwide (+ reg saver) and Tesco will cover your amount.

teddysmum

chockydavid1983 wrote: »

Yep, set up the SO's for the same day.
Nationwide (+ reg saver) and Tesco will cover your amount.

Risky if money is tight and one of the banks has a glitch, leaving you overdrawn. Manually, you can 'grab' some money and move it on time.


if you are referring to a Tesco current account, it now needs 3 DDS/month.