Best Savings Accounts

Misteeq

Hi,

My partner currently has approximatley £140K split between three different current accounts. I've advised him that he will get a better interest rate if he opens savings accounts and transferrs the money. 

Can anyone advise the best three savings accounts for him? Ideally ones that allow withdrawals without penalties, allows regular savings contributions, and are not part of the same banking group to protect his money up to £75K in each account.

He plans to save around £1,000 per month on average.

I've had a quick look on MSE Regular Savings Account page, but it is all a bit mind boggling!

Many thanks

wmb194

Misteeq said:

Hi,

My partner currently has approximatley £140K split between three different current accounts. I've advised him that he will get a better interest rate if he opens savings accounts and transferrs the money. 

Can anyone advise the best three savings accounts for him? Ideally ones that allow withdrawals without penalties, allows regular savings contributions, and are not part of the same banking group to protect his money up to £75K in each account.

He plans to save around £1,000 per month on average.

I've had a quick look on MSE Regular Savings Account page, but it is all a bit mind boggling!

Many thanks

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/

Select the, "rate order" filter.

eskbanker

It's the main savings account page that he needs to be looking at, rather than the regular savers one, which is for the more restricted accounts only allowing limited monthly contributions, albeit at better rates:

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

Only two accounts are needed for full FSCS protection of £140K, as this is up to £85K per institution.

However, it would probably be sensible to consider what the money is intended for, and when, as keeping so much in easy access form is unlikely to be optimal.  Even putting some in fixed term accounts may make sense, but investing, within a pension or standalone, ought to be considered for some unless it's all needed in the foreseeable future?

Misteeq

eskbanker said:

It's the main savings account page that he needs to be looking at, rather than the regular savers one, which is for the more restricted accounts only allowing limited monthly contributions, albeit at better rates:

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

Only two accounts are needed for full FSCS protection of £140K, as this is up to £85K per institution.

However, it would probably be sensible to consider what the money is intended for, and when, as keeping so much in easy access form is unlikely to be optimal.  Even putting some in fixed term accounts may make sense, but investing, within a pension or standalone, ought to be considered for some unless it's all needed in the foreseeable future?

Thank you

Approx £125K will be used for a cash deposit on a house within the next year. The remainder £15K, plus whatever he has saved within the next year will be kept in one of the savings account. 

I will have a look a the llink you recommended

Many thanks.

Misteeq

wmb194 said:

Misteeq said:

Hi,

My partner currently has approximatley £140K split between three different current accounts. I've advised him that he will get a better interest rate if he opens savings accounts and transferrs the money. 

Can anyone advise the best three savings accounts for him? Ideally ones that allow withdrawals without penalties, allows regular savings contributions, and are not part of the same banking group to protect his money up to £75K in each account.

He plans to save around £1,000 per month on average.

I've had a quick look on MSE Regular Savings Account page, but it is all a bit mind boggling!

Many thanks

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/

Select the, "rate order" filter.

Many thanks - I will take a look at the link you have recommended

Mark_d

Don't forget to maximise ISA allowances and premium bonds.  These are both tax free.  Premium bonds is fully protected (up to £50k).

Between you, you can shield £140k from being taxed on interest/prizes

elkiedee

Do any of the places where he has current accounts offer reasonable savings rates? If not, it might be worth looking at opening a current account linked to savings, not necessarily to keep or pay much money into, and he could apply for an account and say no, he's not applying for an overdraft or anything he doesn't need, but it can make accessing the money when the time comes quicker and easier, rather than waiting days/weeks for it to come through. It might be worth looking at limited but quick access accounts as well, for example accounts that allow up to 3 or up to 4 withdrawals a year penalty free. I also have in mind that I probably need to start using my much smaller savings next year and am planning to move most of my largest savings account for a slightly higher rate but also monthly interest, rather than waiting until January for the savings boost. However, I don't have to worry about tax as I'm probably not going to exceed my ISA allowance or personal savings allowance this year, whereas at £140K savings and an income allowing him to save £1K a month that is more of a consideration for your partner.

For buying a house, he needs to take into account extra costs such as conveyancing, stamp duty etc on top of the deposit.