Your sage savings advice - instant vs short term fixed vs ISA (or combos?)

misscatt

Hi all
Been years since I posted last!
I am just about to complete on my flat but found nothing to buy yet (I sit in a rented house atm)
I don't want to tie up the cash (300K) for long (if at all) so I can access to buy a house but want to maximise the savings interest potential
There are a few 6 / 9 month fixed - but they don't reveal what the penalty will be, to help me work out if its worth the penalty e.g. Monument, Hampshire 
Or should I just max out the instant access savings being suggested at moment e.g NatWest ulster
I have already acted on an ISA 
Thanks for any thoughts/advice
Catt

refluxer

misscatt said:

There are a few 6 / 9 month fixed - but they don't reveal what the penalty will be, to help me work out if its worth the penalty e.g. Monument, Hampshire 

There isn't a penalty stated because your money is (almost always) locked away and inaccessible in a fixed rate account until the end of the fixed rate period, so you mustn't tie up money in a fixed rate account if there's a chance you'll need access to it before the account matures.

While you can access money within a fixed rate ISA before maturity, the penalties are usually pretty severe so you want to avoid this if at all possible.

Albermarle

There are notice accounts, where you have to give 30 days, 69, 90 days notice of withdrawal. The longer ones pay a little bit more interest than a standard easy access , but not much.

Be aware that when opening multiple accounts, it is quite possible that some will cause delays by asking for more ID info and some just have better/quicker customer service.
Some smaller savings providers often mentioned in a positive light on here are:
Ford Money
Aldermore
Paragon
Kent Reliance
Coventry building society 
Charter

Bigwheels1111

Tandem 5% easy access, very easy set up and fast payouts.

Just remember 85k FSCS protection.

Covers 85k but not any interest earned over 85K.

Had lots of issues with Kent Reliance so I would avoid them.

Select rate order for top rates first.

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

friolento

Be careful with Ulster Bank - their max daily withdrawal limit is £20k. You can do a CHAPS transfer for higher amounts but there will almost certainly be a charge, and you have to request it in person in an Ulster Branch

jimjames

Bigwheels1111 said:

Tandem 5% easy access, very easy set up and fast payouts.

Just remember 85k FSCS protection.

Covers 85k but not any interest earned over 85K.

Temporary high balance cover by FSCS would mean the £85k isnt relevant short term

boingy

I'd suggest choosing a savings account somewhere where you can also have a current account. When you need the money, move it from the savings to the current which should be instant and trouble free (should be...) then transferring it to the solicitor or whoever should be easier. It's probably wise to pay for a Chaps transfer for such an important purchase. 

misscatt

jimjames said:

Bigwheels1111 said:

Tandem 5% easy access, very easy set up and fast payouts.

Just remember 85k FSCS protection.

Covers 85k but not any interest earned over 85K.

Temporary high balance cover by FSCS would mean the £85k isnt relevant short term

Please can you explain what this means? @jimjames
Thanks!

Middle_of_the_Road

FSCS protects temporary high balances in your bank account, building society account or credit union account of up to £1 million for six months. The protection begins from the date the temporary high balance is credited to an individual depositor's account, or to a client's account on an individual's behalf.

Temporary high balances | Check your money is protected | FSCS

Bigwheels1111

misscatt said:

jimjames said:

Bigwheels1111 said:

Tandem 5% easy access, very easy set up and fast payouts.

Just remember 85k FSCS protection.

Covers 85k but not any interest earned over 85K.

Temporary high balance cover by FSCS would mean the £85k isnt relevant short term

Please can you explain what this means? @jimjames
Thanks!

Just Google it.
Covers you up to 1 million I think.
Don’t bother about it.
Just open 4, 75k easy access savers with different banking institutions.
I have my house money & savings in around 20/30 bank accounts.
Fixed rates, 7 regular savers, 8 easy access, plus 7 bank accounts, savings pots and isa’s.