Choosing the right savings account

kersky1

I am one of the unlucky people who lost money with the Safe Hands funeral plan fiasco. I am now considering putting money into a savings account rather than take on a new funeral plan. Not sure which one to go for. I have £2000 to bank and would make monthly payments as well. But which bank to go with. Any advice would be great. Thanks.

london21

Lots of choice 

Do you want a fixed savings account up to 6.2% or instant access account up to 4.51%. 

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

kersky1

I think I would be wise to put the money into a fixed savings account. I would like to be able to add to it monthly.

Cisco001

1 year/ 2 year fixed could be an option.
Or notice saving account?

artyboy

kersky1 said:

I think I would be wise to put the money into a fixed savings account. I would like to be able to add to it monthly.

Won't work I'm afraid - fixed rate accounts only let you pay in for a very short time after opening the account. So you could put the £2000 you have now into a fixed rate account, but if you also want to make regular payments then you will need to open a separate easy access, variable rate account. 

Albermarle

As above just open two accounts, with the same provider if you want.

Compare The Best UK Savings Accounts (moneyfactscompare.co.uk)

jimjames

kersky1 said:

I think I would be wise to put the money into a fixed savings account. I would like to be able to add to it monthly.

In which case you can use a fixed rate account for the lump sum and a regular saver account for the monthly payments which commonly allow between £25 and £250 per month to be added. If it's more than that you want to add then just use an instant access account at 4.5% as above.

Catplan

jimjames said:

kersky1 said:

I think I would be wise to put the money into a fixed savings account. I would like to be able to add to it monthly.

In which case you can use a fixed rate account for the lump sum and a regular saver account for the monthly payments which commonly allow between £25 and £250 per month to be added. If it's more than that you want to add then just use an instant access account at 4.5% as above.

Or two regular savers

kersky1

I've had a long discussion with a friend who thought I would be better going with a Golden Charter funeral plan as the cost of funerals will just keep climbing and the amount I have at the moment won't cover the full cost of a funeral. I have just over £2000 to bank and adding £50 a month to it won't really add that much including the interest.I am 72 yrs old and it is very worrying. Sorry I'm just getting more confused. 

wmb194

kersky1 said:

I've had a long discussion with a friend who thought I would be better going with a Golden Charter funeral plan as the cost of funerals will just keep climbing and the amount I have at the moment won't cover the full cost of a funeral. I have just over £2000 to bank and adding £50 a month to it won't really add that much including the interest.I am 72 yrs old and it is very worrying. Sorry I'm just getting more confused. 

Instead of savings accounts if you wanted to shoot for a larger amount you could invest it in the stockmarket instead but if you expect to live to c.85 you can save a decent amount between now and then at £2,000 + £600 saved per year plus compounded interest. Paying for a funeral isn't something I've ever concerned myself with but I'd rather have the money in my hands as it would give me options and the opportunity to change my mind.

kersky1

I think it's now an age thing for me and I don't want my family to be left with any expense. Thanks for any advice given.