Best way to save £12k?

Wayne_Manchester

Hi,

A member of my family has £12,000.00 in several accounts at the moment and she wants to get the best possible saving rate. What would be the best way to go about this?

Currently, she's filled one ISA and was going to start another in April. Both of these offer approx. 5% but as she can't have any more ISAs what would be the best thing to do with either the full sum or the remaining £6,000.00?

Thanks

kingmonkey

Transfer the ISAs to ones paying above 5.25% at least.

Open a savings account and a regular savings account.

Drip feed the £6000 from the instant access savings account to the regular savings account.

Primrose

Alternatively, once she's used up her ISA allowance for this tax year and next, she could put the remaining sum into a One Year Savings Bond at the best rate she can find. By the time it matures, the time will be just about right for her to use up another year's ISA allowance. She could then invest the remaining sum outside ISAs for another One Year Bond at a good rate, and by the fourth year she can take up another cash ISA. In the long term, if she's a taxpayer, she should be tax-protecting as much of her savings as possible as Cash ISAs can't last indefinitely but if you don't use them every year, you lose them.