The Top Easy Access Savings Discussion Area

joysa.rude

Hi All,

I need to open 1,2 or 3 high interest savings accounts as i have approx £250,00.00 from a house sale. I need a good rate, be able to transfer monthly amounts (live off the interest until the ozzy exchange rate is much better? via internet banking to a nationwide account as were moving to OZ in 4 weeks!Please help! I see that they have allreduced the rates-typical!!!!

any soound advice is very welcome!

Thankyou
joysa.rude:beer:

JimmyTheWig

joysa.rude wrote: »

I need to open 1,2 or 3 high interest savings accounts as i have approx £250,00.00 from a house sale.

What rate of income tax do you (and/or your spouse if you have one) pay?
If you've got to pay higher rate tax on interest then I think NS&I might be best. This is fully protected by the government.

Otherwise, to get total protection you would want no more then £35k in any one organisation. That means having 8 accounts. Is this unrealistic?
You may prefer, then, Northern Rock's eSaver which pays 6% interest and is completely protected vy the government.

You could go for some sort of comprimise. Go for £35k in each of the top three picks (Kaupthing Edge, Birmingham Midshires e-Saver and Bradford and Bingley's Internet Saver) and the rest in Northern Rock. This would be more hassle than having it all in the Rock, but would gain you about £44 a month extra.

nearleyretired

We are looking for an instant access savings account for my wife (who does not pay tax).

We need the account to place approx £12000 for about 3 months.


Is there a good account out there which is easy to set up - perhaps using a DD to feed it and the ability when we need the money to transfer it directly into our current account?

Does this have to be an Internet only account or can we get a reasonable rate in one of the major high street banks/building societies.

Moggles_2

nearleyretired wrote: »

We are looking for an instant access savings account for my wife (who does not pay tax).We need the account to place approx £12000 for about 3 months. Is there a good account out there which is easy to set up - perhaps using a DD to feed it and the ability when we need the money to transfer it directly into our current account? Does this have to be an internet only account or can we get a reasonable rate in one of the major high street banks/building societies?

Presumably, you need an account which can be opened quickly. As it's only for three months, I would look at your existing provider(s) first. If the money is in a current account, consider opening your bank's internet savings account.

Caution: if you bank with Alliance & Leicester, Barclays, HSBC or First Direct, some of their internet savers pay no interest at all during any calendar month in which you make a withdrawal, so you may want to avoid those!

If only a market-leading interest rate will do (and you're prepared for the extra effort involved), I can certainly recommend Kaupthing Edge, also Bradford & Bingley's Internet Saver, issue 3.

Both are easy-access online accounts with monthly interest options. Quick and straightforward to open as well. Provided that you're on the electoral roll, both banks check your ID electronically. Funds transferred to B&B by direct debit and to KE by BACS transfer.

LizzyJean

Hi,

I have a loan of £70,000.00 which is needed for the next 3 years to pay for my course tuition fees. That is £17,000 (which is payed in 3 instalments)per year. I also have to pay £500 a month to pay back the loan. This means that I have to have an account with instant access.

I am wanting advice on whether to put all the money into one savings account, or to put two years worth into a higher interest account, with one years in a lower interest account? As this is so much money to pay just for my course I would like to get as much returns from the money as possible, even if I have to quite a bit of juggling around.

Many thanks

JimmyTheWig

LizzyJean wrote: »

Hi,

I have a loan of £70,000.00 which is needed for the next 3 years to pay for my course tuition fees. That is £17,000 (which is payed in 3 instalments)per year. I also have to pay £500 a month to pay back the loan. This means that I have to have an account with instant access.

I am wanting advice on whether to put all the money into one savings account, or to put two years worth into a higher interest account, with one years in a lower interest account? As this is so much money to pay just for my course I would like to get as much returns from the money as possible, even if I have to quite a bit of juggling around.

Many thanks

1. You shouldn't keep more than £35000 in any one institution, so you really should split it up.
2. If you don't use your annual cash ISA allowance you lose it, so stick £3600 in the best cash ISA you can find.
3. The best returns at the moment are where you can guarantee to put the money away for a year and not touch it during that time. Work out how much this is true for (e.g. 2nd and 3rd year's fees) and do this with the best such account you can find.
4. The rest should go into instant access savings, with the best account you can find.

If any of this doesn't make sense, or you want an idea of which accounts are good in each case, just ask. There's too much at play here to explain it all in one go if you already understand most of it!

wheelz

I am interested in ING's Direct Savings account http://www.ingdirect.co.uk/savings/ which states 6.5% AER. Is there a reason why I shouldn't go with ING? And why isn't this account mentioned in the top savings accounts as it sounds good to me. There is something in there about bonus that I don't really understand. Can someone shed some light on this?

Mr._H_2

wheelz wrote: »

I am interested in ING's Direct Savings account http://www.ingdirect.co.uk/savings/ which states 6.5% AER. Is there a reason why I shouldn't go with ING? And why isn't this account mentioned in the top savings accounts as it sounds good to me. There is something in there about bonus that I don't really understand. Can someone shed some light on this?

Looks like a good deal if you're not already an ING customer (in which case you can't get it) and are willing to move the money after a year when the rate will revert to ING's usual crappy rate.

wheelz

Mr._H wrote: »

Looks like a good deal if you're not already an ING customer (in which case you can't get it) and are willing to move the money after a year when the rate will revert to ING's usual crappy rate.

I have decided to with Kaupthing Edge, I had never heard of them, it turns out a colleague at work has a savings account with them and says it's all really easy and no problems. If the ING rate goes back to a lower rate after a year that's all inconvenient if I have to move it all then. Not to good at moving accounts.

opinions4u

wheelz wrote: »

I have decided to with Kaupthing Edge, I had never heard of them, it turns out a colleague at work has a savings account with them and says it's all really easy and no problems. If the ING rate goes back to a lower rate after a year that's all inconvenient if I have to move it all then. Not to good at moving accounts.

I would recommend getting good at moving accounts.

The Nationwide advert that comments on banks luring you in with a carrot and then lowering the rate is accurate. Unfortunately they tend to pay "average" rates when others pay good to start with and mediocre afterwards.

Review your rates regularly and move often. If you're unsure of a new provider, test the water by opening an account with a small balance and get comfortable with it by testing withdrawal and deposit speeds before moving your main stash - however big or small that may be!