Which is the best savings account?

Toastie

Like some of the post say; spread your assests to different institutions.

http://www.moneysavingexpert.com/savings/safe-savings#every - this has all the 'linked banks' so only put money in each colour.

I personally would put £30k in each of the accounts. Set up an ISA in your and your other halves name. £3000 in each this year and then £3600 in each of them next year. (The best ISA's I know of are Icesave 6.1% and Aliance and Leicester at 6.25 (A and L will reduce the rate in May2009 so be prepared to switch))

http://www.moneysavingexpert.com/savings/best-cash-isa - these are the higher interest ISA's available.

Personally Kaputhing Edge 6.5% and Icesave at 6.05% would be good places to start for easy access high interest accounts (With Icesave you can have your interest paid in to a nominated account but you will have to use the internet account to transfer any of the 30k by direct debt because there is no debit card).

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts - these are the high interest saving accounts

However always read the Terms and Conditions for the account you open. Interest rates my go down after Xamount of months or a minimum amount of money in the account for the interest to be paid.

Hope this little lecture helps

nicko33

CCStar wrote: »

Which is the best high interest account that lets you withdraw the interest to live on?

How about the ones suggested by MSE
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts

The WestBrom Star is instant access (but no phone? or internet, Only postal or branch) but only 12 withdrawals a year.
you could put, say, half in that, and half in the other best buy

You don't have to think of it needing to withdraw the interest every month.
As long as the top-rate accounts give you at least 1 free withdrawal per year, you could put 350,000 in that, and 80000 in a completely instant-access account.

From the 80,000 you take all your income and let the balance run down while you let the interest grow untouched in the main 350,000 account.


With 12 free withdrawals per year you could go
400,000 and 30,000
use 1 withdrawal per year to top up your 30,000 account when it runs down
another withdrawal for the house purchase, whenever it is
10 left over to move to another account for a better rate

Horasio

It sounds a good idea but I thought it wasn't so safe to have such a large sum in an account.

I find it really annoying having to spread it so wide but if that is how it has to be.

I have sent a cheque to open the West Bromwich and heard nothing - it was sent on 4 February - are they normally this slow?

notis7

I know quite a few people in here have a tendency to look for the best rate and fair play to them. I like my options on the high street though - i feel much more secure with a larger savings provider - a more reputable - if you like.....I believe you can get an above the bank of england rate offer from anywhere on the high street providing you are flexible.....and with the liquidity crisis - bigger is way way way better!

Liz_the_Whizz

CCStar wrote: »

I have sent a cheque to open the West Bromwich and heard nothing - it was sent on 4 February - are they normally this slow?

No, they are usually pretty efficient - I posted my MOB after yours and got the welcome pack back within 2 days.

Horasio

That is worrying - I sent an application form to the Abbey and heard nothing as well

Our postal service is abysmal

tawse57

More problems with Abbey

http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=428923&in_page_id=19&in_author_id=5

chesky369

Your main problem is really going to be that if you keep below the £33k limit (which I always do), youre going to need a dozen accounts. They won't all be great interest rates, nor will they all be efficient. In fact, you are going to run the complete gamut. My own favourite is ICEsave, and I've also got the A&L e-saver. And Sainsburys. And still got ING. You will probably need them all. Good luck.

Steve_xx

chesky369 wrote: »

Your main problem is really going to be that if you keep below the £33k limit (which I always do), youre going to need a dozen accounts. They won't all be great interest rates, nor will they all be efficient. In fact, you are going to run the complete gamut. My own favourite is ICEsave, and I've also got the A&L e-saver. And Sainsburys. And still got ING. You will probably need them all. Good luck.

There are a pair of them so they could always open joint accounts, thus doubling the guarantee to 70k.

nicko33

CCStar wrote: »

It sounds a good idea but I thought it wasn't so safe to have such a large sum in an account.

You asked "which is the best high interest account that lets you withdraw the interest to live on?"
not which are the top 12/6-joint

I was more pointing out that you only need 1 account to continually withdraw money from, they don't all have to be monthly interest.

If you really don't want to take any risks, then get into Northern Rock.
6.35% Fixed Rate access bond 3 - fixed rate until Feb 2009
instant access
annual or monthly interest

if you're over 50 they have Silver Savings Online at 6.49%