High interest savings accounts

Nikkinacnikki

Hi we are looking for advice on high interest savings accounts there seems to be a bit of a minefield my husband had an industrial work accident in 2016 and has put a claim in which we will be soon completed we also been told it could possibly be a very substantial amount of money which we wont to put in to a savings account on the high street while we decide on how to spend it any advice gratefully appreciated please.

tara747

NS&I bonds currently pay 2.2% (or 2.15% if you want an income from it). 3-year term, 90-day interest penalty if you want to withdraw, fully guaranteed by HM Treasury.

El_Torro

Depends on how substantial the sum is. An NS&I Direct Saver will give you 0.95% on up to £2 million. Not a great interest though importantly the whole sum is safe and you will be paid interest on the full amount.


If you're looking for high interest then a number of current accounts would be best. The problem is they will only pay interest for the first few thousand pounds so you may have to open multiple accounts. More info here: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts

Linton

How much money? High Interest accounts have a fairly low limit on the amount you can deposit.

If the money is really substantial (say £50K plus) it could be most sensible to consider NS&I which is 100% guaranteed by the government. Interest rates around 0.95% for immediate access- not great but better than a high street bank standard deposit account.

badger09

Nikkinacnikki wrote: »

Hi we are looking for advice on high interest savings accounts there seems to be a bit of a minefield my husband had an industrial work accident in 2016 and has put a claim in which we will be soon completed we also been told it could possibly be a very substantial amount of money which we wont to put in to a savings account on the high street while we decide on how to spend it any advice gratefully appreciated please.

If this is personal injury compensation, it would be covered for up to 6 months by FSCS under the 'temporary high balance' rules. There is no limit for this category.

So, you could have it paid into whichever savings account pays the most interest while you decide what to do with it, just don't take longer than 6 months to decide.

Depending on your definition of a very substantial amount, you might also consider consulting IFA.

YorkshireBoy

Nikkinacnikki wrote: »

Hi we are looking for advice on high interest savings accounts

Did you not follow up on the advice given the last time you asked the same question back in September?...


https://forums.moneysavingexpert.com/discussion/comment/73091918#Comment_73091918

Nikkinacnikki

hi sorry but didn't know where to find the info that was previously suggested bit of a newby to this site so didn't know there was any comments made thank you for bringing this to my attention.

Audaxer

tara747 wrote: »

NS&I bonds currently pay 2.2% (or 2.15% if you want an income from it). 3-year term, 90-day interest penalty if you want to withdraw, fully guaranteed by HM Treasury.

Agree as the above is the new NSI Guaranteed Growth Bond just issued on 30 November and you can deposit up to £1m. It seems as good a place as any for substantial savings that you may or will need in the not too distant future. Even if you needed the money after a year, there is only a 90 day interest penalty, so you would still get more interest than most easy access accounts.

traineepensioner

Audaxer wrote: »

Agree as the above is the new NSI Guaranteed Growth Bond just issued on 30 November and you can deposit up to £1m. It seems as good a place as any for substantial savings that you may or will need in the not too distant future. Even if you needed the money after a year, there is only a 90 day interest penalty, so you would still get more interest than most easy access accounts.

Also, If you think that you might need access to some of money before the 3 year period, you could always open a number of bonds of varying amounts. ie, if you had £16,000 you could split the money between 3 bonds.... one bond at £1000, one at £5,000 and one at 10,000.

le_loup

You don't need to do that. The 90 day penalty only applies to the amount of the early withdrawal.

agent69

tara747 wrote: »

NS&I bonds currently pay 2.2% (or 2.15% if you want an income from it). 3-year term, 90-day interest penalty if you want to withdraw, fully guaranteed by HM Treasury.

Can you drip feed into the NS&I account, or is it just one payment at the beginning and that's your lot?