£1500 to invest for a student - where is best?

brandy23

My teenage daughter currently has £1500 in Barclays high interest account - she is a student and does not need to withdraw the money for the foreseeable future. She would like to put it in an account with better interest.

Would she be better off moving it - if so whre to?

She is good at saving so I expect it will grow quite a bit in the next year or so.

Liz_the_Whizz

Is she a non-taxpayer? If she really does not need access, a fixed term bond would be a good bet especially if she is eligible for gross interest.

ICICI are still offering 6.85% gross on 1 year FTBs. She would also need to open a HiSave easy access savings account (currently 6.41% gross) with them to access the FTB - no bad thing if she expects to be able to add to her savings.

Who knows if/when the variable rates will drop? I took out my FTBs in November 2007 and the rate is still the same despite 2 Bank of England base rate cuts.

As a saver, I'm not complaining, mind;) .

Steve_xx

If she's a good saver she should use up her ISA allowance primarily as any interest earned from this will always be tax-free.

I would suggest the Alliance & Leicester ISA paying 6.25%. Here's a link:

http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa&ct=savingshome

notis7

brandy23 wrote: »

My teenage daughter currently has £1500 in Barclays high interest account - she is a student and does not need to withdraw the money for the foreseeable future. She would like to put it in an account with better interest.

Would she be better off moving it - if so whre to?

She is good at saving so I expect it will grow quite a bit in the next year or so.

I am not aware of Barclays providing anything with a high rate at present!!!!!! They have cut their rates 3 times in the last 5 months and are due to cut them again in responce to the bank of england base rate change!!!!!

Change to someone else.....Halifax, Abbey and HSBC are all offering ISA s above base and that is the way to go-tax free savings - you can not go wrong!

brandy23

Thanks all