Savings account for large intial deposit

lozzaloula1

Advice needed, please!

My Daughter has a lump sum of £28,000 from the sale of her house. She is currently living abroad but plans to return to the UK within the next 2-3 years. Her money is currently in a UK account, but she is only earning £65 per month interest. She is not particularly money savvy and doesn't know the interest rate. 

I am advising her to make her money work harder and am looking at the best accounts for her. She wants the account to be easily accessible, which will obviously mean the interest rate will be lower. 

Would it make sense to put half in a fixed account and half in an easy access account? Are there any drawbacks to doing this? Also, does anyone know of any accounts that would fit the bill?

Thanks in advance 

eskbanker

If she isn't a UK resident then this will severely constrain her options for opening new UK accounts, so it's very unlikely that she'd have access to the market-leading products available to those who do live here - £65 per month from £28K is close to 3%, which isn't a terrible return....

saajan_12

lozzaloula1 said:

Advice needed, please!

My Daughter has a lump sum of £28,000 from the sale of her house. She is currently living abroad but plans to return to the UK within the next 2-3 years. Her money is currently in a UK account, but she is only earning £65 per month interest. She is not particularly money savvy and doesn't know the interest rate. 

I am advising her to make her money work harder and am looking at the best accounts for her. She wants the account to be easily accessible, which will obviously mean the interest rate will be lower. 

Would it make sense to put half in a fixed account and half in an easy access account? Are there any drawbacks to doing this? Also, does anyone know of any accounts that would fit the bill?

Thanks in advance 

Very roughly that's a 2.8% interest rate, which is low currently. 

Theres many comparison sites of availabile savings accounts. Here's MSE's one below. Just pick one with a good interest rate which suits. Some will have limits on how much money you can deposit and get the interest on. In between easy access and fixed term accounts, you also get notice accounts where you can withdraw with a drop in interest rate or with some notice. 

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

born_again

As @eskbanker

Not living in the UK is going to make it harder to open a new account.

lozzaloula1

born_again said:

As @eskbanker

Not living in the UK is going to make it harder to open a new account.

Couldn't she just put herself as living at our address? 

lozzaloula1

I should add that she is abroad on a working holiday visa, so it is a permanemt move abroad.

ColdIron

lozzaloula1 said:

born_again said:

As @eskbanker

Not living in the UK is going to make it harder to open a new account.

Couldn't she just put herself as living at our address? 

You mean fraudulently declaring that she's currently a UK resident?

lozzaloula1

eskbanker said:

If she isn't a UK resident then this will severely constrain her options for opening new UK accounts, so it's very unlikely that she'd have access to the market-leading products available to those who do live here - £65 per month from £28K is close to 3%, which isn't a terrible return....

She's abroad on a working holiday visa, so it isn't a permanent move abroad. Does that make a difference? 

lozzaloula1

ColdIron said:

lozzaloula1 said:

born_again said:

As @eskbanker

Not living in the UK is going to make it harder to open a new account.

Couldn't she just put herself as living at our address? 

You mean fraudulently declaring that she's UK resident?

No, she's abroad on a working holiday visa, therefore she's not a permenant resident of the country she's in. I thought that might make a difference

eskbanker

lozzaloula1 said:

eskbanker said:

If she isn't a UK resident then this will severely constrain her options for opening new UK accounts, so it's very unlikely that she'd have access to the market-leading products available to those who do live here - £65 per month from £28K is close to 3%, which isn't a terrible return....

She's abroad on a working holiday visa, so it isn't a permanent move abroad. Does that make a difference? 

You'd said that "She is currently living abroad but plans to return to the UK within the next 2-3 years", but it may be worth studying the rules on tax residency to ascertain her status.

lozzaloula1

eskbanker said:

lozzaloula1 said:

eskbanker said:

If she isn't a UK resident then this will severely constrain her options for opening new UK accounts, so it's very unlikely that she'd have access to the market-leading products available to those who do live here - £65 per month from £28K is close to 3%, which isn't a terrible return....

She's abroad on a working holiday visa, so it isn't a permanent move abroad. Does that make a difference? 

You'd said that "She is currently living abroad but plans to return to the UK within the next 2-3 years", but it may be worth studying the rules on tax residency to ascertain her status.

She's been living abroad for the last year on a working holiday visa, she plans to do some more travel to other countries then return home in 2-3 years.