Where to save? 16 December 2022 at 1:02PM in Savings & investments 22 replies 1.7K views

Dzza187

I came into some money last year and thinking it would be fine just left in my banks basic savings account until I could decide what I should do to make it work for me. I’ve only recently discovered that the rate is very,very low and I need to move it out to make it work a bit for me. I have £20000 I want to move but unsure if it’s best to go into one account all in or split between two different ones. I’m not too fussed about leaving it in somewhere longer term if needed as I’ll leave myself another £5000+ in an easy access account for emergencies (probably not with my current savings account-int rate currently at 0.40%.)
Just where or what do I do with it with the economy so unpredictable at the moment? 

Thanks.

eskbanker

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ gives a range of options, but much will depend on how much effort you're prepared to put in to get decent rates - many on here will keep moving savings around to chase the best return, but if that sounds like too much work then just pick a top-paying easy-access account for some of the money and a good fixed rate one for the rest, for whatever period you feel comfortable with.

https://www.moneysavingexpert.com/savings/best-cash-isa/ is also potentially worth considering if you're not already using ISAs.

Albermarle

 it would be fine just left in my banks basic savings account until I could decide what I should do to make it work for me. I’ve only recently discovered that the rate is very,very low 

The savings accounts offered by High st banks are normally pretty abysmal, although they offer some OK regular savings accounts, but these restrict how much money you can put in them.

Better to shop around, and do not be worried if you do not recognise the name of some of the smaller banks.

Every savings provider mentioned in the MSE link in the previous pos, are covered by the full £85K FSCS compensation, in case anything went wrong. 

Here is a link to a similar running thread

which is best bank account for me — MoneySavingExpert Forum

Richard1212

Put it all in one of the Banks (or BSocs) that regularly have Savings Accounts in the Top 10 ------in my case I use Marcus Bank (my favourite), RCI Bank, Virgin Money ( Banks are always quicker if you are managing your savings online----some BSocs still insist on postal service or visiting a branch----can you believe it ??? ).

I refuse to be one of those people who dash back and forth from savings banks/bldg socs every time there is a change at the top of the "Best Interest Rates" list but occasionally the "home" of your savings DOES have to change if a significant interest rate disparity creeps in over time. So pick one out of a number with historically continual competitive high earning accounts that suit your particular needs and put all the £20k into one of them ; and use easy access accounts for some of the money, and fixed rates for others, if that factor is relevant to YOUR needs; but, if easy access, check every month , 6 months, whatever...... on the Interest Rate Chart Toppers and make sure yours hasn't drifted a very long way from the top of the board ( I use a disparity of 0.5%-0.75% as my criterion for possible change), but on a figure of £20k you may wish to change more frequently. Whatever is best for you. I wish you good returns on your £20,000. 
PS----wait till effects of latest Bank of England increase filters through to savings banks/bldg socs sometime early in the New Year. Merry Xmas.

RobM99

4.25%  one a one-year fix any good?  £850 for doing not a lot!

Albermarle

some BSocs still insist on postal service or visiting a branch----can you believe it ??? ).

To be fair, some of them are very small, with only a handful of branches, or only one branch in some cases.

Janie2008

I must admit I can't be bothered to keep moving money about so I have my savings in one building society or my bank. I use Coventry building society as their rates are pretty good and I've just opened the limited access account paying 2.85,% going to 3.25% in January. It's really easy to open new accounts if you are already a customer. I also have some in a one year fixed rate 4.15% with my bank, Halifax which is a preferential rate for bank account holders. Again takes seconds to open the account.

Albermarle

Janie2008 said:

I must admit I can't be bothered to keep moving money about so I have my savings in one building society or my bank. I use Coventry building society as their rates are pretty good and I've just opened the limited access account paying 2.85,% going to 3.25% in January. It's really easy to open new accounts if you are already a customer. I also have some in a one year fixed rate 4.15% with my bank, Halifax which is a preferential rate for bank account holders. Again takes seconds to open the account.

For sure it is usually a lot easier to open new accounts with a current provider. Sticking with a couple of existing providers who have at least consistently quite good rates, rather than chasing every last 0.1% is a reasonable strategy in my view, if that is what suits you.
The main point is not to have money languishing in current accounts , or very poor savings accounts as typically offered by the big High St banks . Maybe we will have to stop calling them High St banks soon, as they are closing all their branches !

trickydicky14

Janie2008 said:

I must admit I can't be bothered to keep moving money about so I have my savings in one building society or my bank. I use Coventry building society as their rates are pretty good and I've just opened the limited access account paying 2.85,% going to 3.25% in January. It's really easy to open new accounts if you are already a customer. I also have some in a one year fixed rate 4.15% with my bank, Halifax which is a preferential rate for bank account holders. Again takes seconds to open the account.

Each to their own, but I do despair when I see the phrase “I must admit I can't be bothered” why spend time on a site like MSE if folks can’t be bothered. It’s nice to simplify life but at what cost? Most on MSE are happy to go the extra mile.

RobM99

trickydicky14 said:

Janie2008 said:

I must admit I can't be bothered to keep moving money about so I have my savings in one building society or my bank. I use Coventry building society as their rates are pretty good and I've just opened the limited access account paying 2.85,% going to 3.25% in January. It's really easy to open new accounts if you are already a customer. I also have some in a one year fixed rate 4.15% with my bank, Halifax which is a preferential rate for bank account holders. Again takes seconds to open the account.

Each to their own, but I do despair when I see the phrase “I must admit I can't be bothered” why spend time on a site like MSE if folks can’t be bothered. It’s nice to simplify life but at what cost? Most on MSE are happy to go the extra mile.

Extra mile is fine, but I'm not spending time chasing an extra 0.05% or a few quid a year by opening extra accounts I really don't want. If I really want to save cash, there are much more effective ways to do it.

On the other hand I have a friend who moved £thousands from a 0% current account toa 4% one-year fix. That's worth the effort!

Band7

RobM99 said:

Extra mile is fine, but I'm not spending time chasing an extra 0.05% or a few quid a year by opening extra accounts I really don't want. 

How do you know that people on here are spending their time chasing an extra 0.05% or a few quid a year by opening extra accounts they really don't want? I have not seen anyone saying they are doing this, or anybody who has criticised anyone for not doing this.