Best savings account for 20k

catmac90@hotmail.com

I have done my research and the highest interest I came across was on up to £3k @3.04% with a well known bank.  I cannot find interest on any higher amounts. Any info or guidance where to look would be appreciated. Thank you.

grumiofoundation

For 20k I would look at premium bonds. Although the return is not guaranteed you would hope (with average luck) to get ~0.9%. 

If you want guaranteed interest see below:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

I am not sure what account pays 3.04% on 3k. 

RBS/NatWest offer a regular savings account at 3.04% but you can only deposit £50 per month and interest only on up to £1000. 

As you can see in link above current accounts with Virgin money and nationwide offers 2% on £1k and £1.5k. 

catmac90@hotmail.com

Thank you I wanted to put the amount into an account for my daughter for when she is 18. So will check the link. Thanks.

refluxer

Does she have a Junior ISA ? You'll only be able to pay in £9k per year but the best Junior Cash ISAs are currently paying the highest rate of interest of any savings account outside of a regular saver, as far as I can see.

Be sure to read MSE's guide to the pros and cons of a Junior ISA though as it may not suit all circumstances (eg. the money becomes your daughter's once deposited and can't be withdrawn until she's 18, at which point she gets automatic control of the money)

If a Junior Cash ISA isn't suitable and you don't need easy access to the money, then you can get rates that start to approach those of the top Junior ISAs if you're prepared to lock your cash away in a fixed rate account for a fixed period of time.

grumiofoundation

catmac90@hotmail.com said:

Thank you I wanted to put the amount into an account for my daughter for when she is 18. So will check the link. Thanks.

Do you want to put the money in her name now?
If so, as posted above, look at a junior ISA (9k per year).

Depending on her age, and therefore timescale, investing (stocks and shares) may be worth considering for all/some of the money

Alexland

refluxer said:

Be sure to read MSE's guide to the pros and cons of a Junior ISA though as it may not suit all circumstances (eg. the money becomes your daughter's once deposited and can't be withdrawn until she's 18, at which point she gets automatic control of the money)

They could even request to take control of the JISA at 16 in advance of being able to withdraw from 18.

sancahojo

With £20k I would consider a good fund to put it in. But as above, would need to be spread over a couple of years to get tax benefit. 

tebbins

sancahojo said:

With £20k I would consider a good fund to put it in. But as above, would need to be spread over a couple of years to get tax benefit. 

The OP is asking about savings accounts and it looks like their questions have been answered well enough. Suggesting "a fund" is vague and not appropriate. What tax benefit are you talking about and why would what need to be spread over a couple of years to get it?

sancahojo

tebbins said:

sancahojo said:

With £20k I would consider a good fund to put it in. But as above, would need to be spread over a couple of years to get tax benefit. 

The OP is asking about savings accounts and it looks like their questions have been answered well enough. Suggesting "a fund" is vague and not appropriate. What tax benefit are you talking about and why would what need to be spread over a couple of years to get it?

JISA tax benefit, as was mentioned above. Why is a fund not appropriate??

Albermarle

sancahojo said:

tebbins said:

sancahojo said:

With £20k I would consider a good fund to put it in. But as above, would need to be spread over a couple of years to get tax benefit. 

The OP is asking about savings accounts and it looks like their questions have been answered well enough. Suggesting "a fund" is vague and not appropriate. What tax benefit are you talking about and why would what need to be spread over a couple of years to get it?

JISA tax benefit, as was mentioned above. Why is a fund not appropriate??

It might be appropriate but the OP asked about savings accounts.

As investing in a fund is a different thing altogether , then if you suggest it , you should explain what a fund is , the pros and cons of risk based investments  vs. safe savings etc as many newbie posters are often not at all clear on the difference and generally lacking in knowledge about investing. Most people do not know what a fund is , never mind what a good one is.

Daliah

Albermarle said:

sancahojo said:

tebbins said:

sancahojo said:

With £20k I would consider a good fund to put it in. But as above, would need to be spread over a couple of years to get tax benefit. 

The OP is asking about savings accounts and it looks like their questions have been answered well enough. Suggesting "a fund" is vague and not appropriate. What tax benefit are you talking about and why would what need to be spread over a couple of years to get it?

JISA tax benefit, as was mentioned above. Why is a fund not appropriate??

It might be appropriate but the OP asked about savings accounts.

The OP might not appreciate the difference between saving and investment.

Investment might be a better alternative than saving, depending on the age of the daughter and depending on the risk the OP would find acceptable. The only thing we do know for certain is that savings are currently not keeping pace with inflation and that therefore the purchasing power of the saved sum will gradually diminish.