Which is best account to put £10000 to get best return (don't need access)

bgscotty

Hello.

I'd welcome a little advice.

I'm looking to put £10000 in an account to get the best return. I do not need to touch it for a few years.

I have already invested the max for this year in a cash ISA.

I'm not confident with Stocks & Shares.

I'm a non-tax payer.

Thank you in advance.

BG

bgscotty

I'd welcome any thoughts.

Thanks.

BG

KTF

There are several fixed rate accounts available:

http://www.halifax.co.uk/savings/fixedwebsaver.asp - 6.5% over 6 month term.

http://www.co-operativebank.co.uk/servlet/Satellite?c=Page&cid=1170748476616&pagename=CB%2FPage%2FtplStandard&loc=l - 6.62% over 1 year term.

http://www.icesave.co.uk/fixed-rate-savings.html - 6.86% over 6 months, 6.7% over 1 year, 6.6% over 2 year, 6.5% over 3 year.

http://www.kaupthingedge.co.uk/ - 6.86% over 1 year.

All percentage figures quoted are AER.

liitleblackcat

Interesting that the Icesave fixed rates go down over longer periods. In the past you used to get hgher rates for longer restrictions on access. Presumably the expectation is that interest rates are likely to continue coming down over the next few years.

Two questions - is it easy to transfer funds from an instant access Kaupthing Edge account to the fixed rate 6.86%, and is it worth losing the instant access for an additional 0.36% (on £10k that would be £686 compared with £650 over a year)?

Baldur

liitleblackcat wrote: »

.....(on £10k that would be £686 compared with £650 over a year)?

That's assuming that the variable rate savings account did not have any rate reductions over the year (which looks unlikely to me, given the current state of the economy & global financial markets) - at least you know what you will receive with a fixed rate account.

KTF

liitleblackcat wrote: »

Two questions - is it easy to transfer funds from an instant access Kaupthing Edge account to the fixed rate 6.86%, and is it worth losing the instant access for an additional 0.36% (on £10k that would be £686 compared with £650 over a year)?

Once money has arrived in the instant access account, you click on on the fixed rate account that you want to open, enter the amount you want to transfer into it and it appears straight away.

The extra interest is always a bonus. Depends if you think you will need to access the money over the term.