Where to put £60k for 6 months?

Rags2riches

We have built up £60k and really welcome your suggestions on what to do with it to earn a decent rate. We are planing to use the funds in around 6 months or so but want it to be working hard for us in the meantime.

We've looked into high interest regular saver accounts but realise these may be off-the-cards as we will need access to a large chunk of it before the 12 month period.

Realistically we could have one or two credit searches in order to open new accounts but ideally want to keep these to a minimum.

So far we already have researched and been able to open:

• Santander 123 at 1.5 % (1.2% after the monthly fee) on £20k (sole account)
• Nationwide current account at 5% on £5k (sole account)
• A second Nationwide account at 5% on £5k (sole account)
• HSBC earning no interest! (sole account)

Where should we put the funds?

sjp999

Does "we" = joint?

2 more Santander accounts takes care of 2/3rds of it - 1 joint and another in the other parties name.

NS&I would be the easiest next option, you're going to have some effort placing the rest in higher interest but smaller amount accounts.

worried_jim

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Rags2riches

sjp999 wrote: »

Does "we" = joint?

2 more Santander accounts takes care of 2/3rds of it - 1 joint and another in the other parties name.

NS&I would be the easiest next option, you're going to have some effort placing the rest in higher interest but smaller amount accounts.

We is joint. It doesn't matter if where we put it is in one persons name or the other or both. I was thinking a number of accounts to distribute it at a higher rate may work. When you say NS&I do you mean premium bonds?

Rags2riches

worried_jim wrote: »

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TheShape

Rags2riches wrote: »

We have £60k of capital ready for a house purchase but due to our situation aren't intending to use the funds for 6 months or so. We need to have ready access to it in a few months time but would like to be earning a decent rate in the meantime.

We presume high interest regular saver accounts may be off the cards, as we will need to withdraw the money before the 12 month period. We could have one or two credit searches at this time each in order to open new accounts but ideally want to keep these to a minimum.

So far we already have:

• Santander 123 at 1.5 % (1.2% after the monthly fee) on £20k (sole account)
• Nationwide current account at 5% on £5k (sole account)
• A second Nationwide account at 5% on £5k (sole account)
• HSBC earning no interest! (sole account)

Is Club Lloyds or BoS at 3% a good bet, Tesco and TSB look like they have good rates or should we just go for a multitude of savings accounts?

Where should we put the funds?

Re the Nationwide accounts, do you have two sole accounts each with £2.5k (Total £5k) or £5k in each? You will only be earning 5% on £2.5k per account.

You could each open a Flexclusive Regular Saver each and deposit £250 p/m. You can withdraw money penalty free at any time from this account so not locked in for 12 months.

As you are a 'we', you might also consider a joint Flexdirect account.

Club Lloyd's and BOS accounts pay 2% interest although the Club Lloyd's Monthly Saver pays 3% on up to £400 p/m, again instant, penalty free access although you will probably have to deposit £25 p/m until the end of term (check the t&cs) though you can withdraw this after it's deposited.

Rags2riches

Rags2riches wrote: »

We is joint. It doesn't matter if where we put it is in one persons name or the other or both. I was thinking a number of accounts to distribute it at a higher rate may work. When you say NS&I do you mean premium bonds?

We have looked into San123 but our current account (in a sole name) was opened when it was at 3%. At today's rate of 1.5% (and when you take into account the £60 annual fee), we're a bit loathed to go for it.

£60k at 1.2% doesn't really seem that beneficial over ISA rates.

sjp999

I was going to suggest red

NS&I Income Bond 0.75% no early withdrawal penalty. Too new to post a link.

Rags2riches

TheShape wrote: »

Re the Nationwide accounts, do you have two sole accounts each with £2.5k (Total £5k) or £5k in each? You will only be earning 5% on £2.5k per account.

You could each open a Flexclusive Regular Saver each and deposit £250 p/m. You can withdraw money penalty free at any time from this account so not locked in for 12 months.

As you are a 'we', you might also consider a joint Flexdirect account.

Club Lloyd's and BOS accounts pay 2% interest although the Club Lloyd's Monthly Saver pays 3% on up to £400 p/m, again instant, penalty free access although you will probably have to deposit £25 p/m until the end of term (check the t&cs) though you can withdraw this after it's deposited.

£5k in each at present so not earning interest on half of it at present!

Great to know we can withdraw it mid way. This would mean we can start putting in £500 at present.

Do you know if we could also open a joint account at Nationwide if we already have one each in sole names?

I didn't know Club Lloyds had a £400 reg saver. That is also really useful. Not a problem paying in £25 p/m.

I think the 3% was on Tesco at present?

Rags2riches

With Club Lloyds Regular Saver it says they pay interest annually. Does this mean they pay the interest on the balance at the end of 12 months or do they calculate the interest daily and pay it out annually?

i.e. If I pay in £400 per month for 6 months and then withdraw it will that accrue interest over that period or will they pay 0?

Rags2riches

So far I have it down to:

BoS with Vantage 3 accounts at 2% = £15k with no monthly fee!
Club Lloyds but with a £3 fee after 6 months unless I moved the money in from another account.

Tesco at 3% but only on £3k - Can I really open 4 accounts with Tesco? = £12k

Are there any other options. A year ago this was easy Santander 123 was the clear winner at 3% but today it seems more complicated.