Need to put money away for a year, what is the best way to do it ?

Sunny2good

Hi everybody,

i have maximised my ISA and now ive got around £15K to put away for a year. I will not be touching this money and will be taking it all out after a year and do not mind an internet only account aswell. Interest paid monthly is preferred. What are my options?

Id rather go with one of my banks like Abbey or alliance & leicester as I am a bit sceptical of putting money in a Bank/Building society which i have not heard of but if you have some good feedback about someone paying a good rate then plz let me know.

secondly, i have heard of fix term bonds but do not know how it works.

i would really appreciate your help.

Kind Regards,

Sunny

Aegis

A fixed term deposit at somewhere like Icesave or Kaupthing Edge would get you one of the top returns for the year. Both are covered up to £35k against any losses by various compensation schemes.

If you take those as your benchmark and look around for a bank you're happy with, you'll be able to decide if the difference matters to you or not.

Karfypie

Sorry to ask a question on your thread but i'm thinking about getting a kaupthing account as the interest rate is so good, it says you have to have a current account that accepts and receives electronic payment. does anyone know if a barclays cuurent account does? thanks.

planemad

A fixed term saving bond is a sum of money put into a fixed rate saving product offered by most banks.

The money is tied up for the term of the bond and you do not have access to it until the term is up..

I would recommend ICESAVE to you, 6.70 is a good rate for a year fixed.
ICESAVE is protected by the FSCS in the same way as UK institutions are.

http://www.icesave.co.uk/fixed-rate-savings.html

Aegis

Should do. I don't know of any UK current accounts that can't send electronic payments... Then again, I only really know the HSBC systems in any depth

whu

for fixed rate bonds you might also want to look at BM Midshires rates - i think they pay monthly or yearly