Suggestions for best "transit" account

Fella

Unless anyone can educate me I don't see any easy way of withdrawing from an Internet-only account (such as ING, ICESAVE or Tescos as some examples) in order to open a Bond, without enduring a 3-4 day period where you both lose interest AND risk the bond being withdrawn.

So the best compromise I can think of is to have an account that offers as high interest as possible but lets you instantly withdraw via cheque (i.e. a regular building society account I guess).

Any suggestions for the best one? Also any flaws in my logic overall?

thanks
Fella

Fella

Bumpamundo

YorkshireBoy

How about a Sainsbury's Internet Saver/Halifax HICA arrangement, offering 6%/6.17% respectively?

Keep £2.5K in the HICA, and bounce £1K back and forth from Sainsbury's each month to satisfy the HICA's funding requirements.

Transfers from Halifax=>Sainsbury's are instant, and Sainsbury's=>Halifax are overnight.

Works for me!


HICA = High Interest Current Account

Fella

Thanks to YorkshireBoy for his reply.

Is there any reason though, why I couldn't just use a regular BS account? My two criteria are highest interest possible (6%+) & the ability to w/d at least £35K by cheque at zero notice.

To explain a little further, I'd like to move some money from Icesave-type accounts into fixed rate bonds, however the delay in moving the money means I keep missing the bond.

Obviously I don't want to just keep chunks of money in my current a/c. But I would be prepared to lose some interest, i.e. 6% instead of 6.4% or whatever, whilst I wait for (hopefully) another decent fixed bond to come along.

Thanks
Fella

TomJ

You could go with the Coventry for a year; 6.1% including the first year bonus and a Visa card to make payments with...

Fella

Ah - I'm in London so whoever it is needs to have a branch there really?

thumshie

Well, going by moneysupermarket.com, the only branch based accounts anywhere near your 6% are:

WEST BROMWICH BS
Premier Bonus Tracker 5
Easy Access6.28%4.87%3.65%6.08%£1000 Instant Variable
Monthly Info:
Min investment £1,000. Max investment £500,000.

Details MANCHESTER BS
Premier Bonus Issue 2
Easy Access6.11%5.05%3.79%6.31%£1000 See Details Variable
Annually 5.91%4.73%3.55%5.91%0.40% bonus 1st 6 mthsInfo:
Min investment £1,000. Max investment £75,000.

Details STROUD & SWINDON BS
Branch Premier Issue 2
Easy Access6.10%4.88%3.66%6.10%£100 Instant Variable
Yearly Info:
Min investment £100. Max investment £50,000.

Details SKIPTON BS
Branch Access Account (Issue 2)
Easy Access5.85%4.88%3.66%6.10%£500 Instant Variable
Yearly 5.60%4.48%3.36%5.60%0.50% bonus, 1st 6 mthsInfo:
Min investment £500. Max investment £50,000.

Details

don't think there will be many branch based accounts.. Best option would be like YB said, Current account with an Online account at same institution..

Fella

Aaargh, thought I'd cracked it with Stroud & Swindon's Branch Instant 6.10% account but they've closed their London branch.

Never realised this would be so tricky!

gt94sss2

As I see it you have a couple of possible options that you haven't mentioned yet:

1. What sort of rate do you want for your fixed bond? I ask as ICICI are still offering 6.85% for a year and IceSave 6.7%

2. Keep the money in a Internet account and whenever you open a bond, give them a cheque.. by the time the cheque clears the money should have reached your current account from the internet savings account (or you could pay for a CHAPS transfer)

3. See if you bank has a reasonably paying 'Instant Access' account - even if its not 6%+ on the basis that the money won't be there for long - for instance HSBC pay 5.75% on this account

Are any of these suggestions any use?

Edit: Its also worth considering that opening any new account with a building society etc.. will involve your money being tied up while the account is opened - which might not be a good idea if you want to invest in a bond very soon

Regards
Sunil

Fella

thumshie wrote: »

Well, going by moneysupermarket.com, the only branch based accounts anywhere near your 6% are:


don't think there will be many branch based accounts.. Best option would be like YB said, Current account with an Online account at same institution..

Hmm, Manchester, S&S & WestBrom all too far away. Skipton would have been good but I already have a chunk with them. I could move that I guess. Or go with the savings linked to current a/c option....

cheers
Fella

Fella

gt94sss2 wrote: »

As I see it you have a couple of possible options that you haven't mentioned yet:

1. What sort of rate do you want for your fixed bond? I ask as ICICI are still offering 6.85% for a year and IceSave 6.7%

2. Keep the money in a Internet account and whenever you open a bond, give them a cheque.. by the time the cheque clears the money should have reached your current account from the internet savings account (or you could pay for a CHAPS transfer)

3. See if you bank has a reasonably paying 'Instant Access' account - even if its not 6%+ on the basis that the money won't be there for long - for instance HSBC pay 5.75% on this account

Are any of these suggestions any use?

Edit: Its also worth considering that opening any new account with a building society etc.. will involve your money being tied up while the account is opened - which might not be a good idea if you want to invest in a bond very soon

Regards
Sunil

The bond I want as high a rate as possible but with the caveat that I want the option to withdraw funds if I needed to (i.e. I don't want one of the bonds that don't allow early withdrawals under any circumstances, I wouldn't give that much control of my money to a bank/bs).

Option 2 may work but I think is pretty risky. It seems that with any half-decent bond you need to open them practically the first day they appear, which would (IMO) run a large risk of the cheque bouncing if the bond issuer presents it very quickly.

The HSBC account is interesting but I think there savings account carries penalties if you withdraw in any given month.


A Cahoot savings account (6.2%) linked to a Cahoot current account is currently looking like the best option, although I had hoped to avoid opening another current account....

Edit: Cahoot is only 6.2% if you have £250,000! So Yorkshireboy's suggestion is still the best


cheers
Fella