What to do with my money

forgery

Hey everybody, I'm in the middle of changing my savings account holder so I kind of have options and was hoping for some advice.

I currently have, lets say, roughly £5,000 in savings. I have my ISA filled so that's not an option. I was simply looking at opening an account with Kaupthing Edge with it's 6.5% however just looking around I noticed the

Alliance & Leicester 8.5% interest and cash bonuses. Alliance and Leicester's* online Premier Direct account pays a huge 8.5% interest on balances up to £2,500 for the first year, though after that drops to 1% below the Bank of England base rate.

So what should I do??? Should I stick it all in Kaupthing? or 2,500 in A&L and 2,500 in Kaupthing? I realise I would have to change the A&L after a year but that really isn't a problem. Or are there any other options?

What do you guys think?

Many Thanks

Forgery

Baldur

The A+L Premier Direct is a current account, not a savings account - you have to pay at least £500 per month in or may be charged fees. Any balance over £2,500 earns a pittance in interest - see http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-legals&currpage=premierdirect

forgery

ah right, i see. Is my best bet to chuck it all in that Kaupthing account then?

Are there any more options or am I making the best moves?

Many thanks again

Forg

Baldur

forgery wrote: »

ah right, i see. Is my best bet to chuck it all in that Kaupthing account then?

Are there any more options or am I making the best moves?

You haven't really given enough information for anyone to advise you really, e.g. do you need immediate access to your savings? Would a fixed rate account suit you?, etc., etc.

forgery

ah, I see. I'm not too sure really, I would like to have immediate access really, I do see the benefit of long term savings but I don't wanna kick myself in the back and find my self caught short for anything. I would start investing more long term when I have more money to save. Other than that i'm not too fussed. I just want to do the best with my money as possible. Considering i've saved it and it's there for saving.

As you may tell I completly new to this and now only just really starting to explore the big wide world.

Hope this helps...

Forg

Baldur

Suggest that you read though http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
to familiarise yourself with what's available before anything else.

Genny_2

Quote - Premier Direct account pays a huge 8.5% interest on balances up to £2,500 for the first year, though after that drops to 1% below the Bank of England base rate.

A & L's Premier Direct account has a linked PlusSaver account paying 5.50% allowing easy transfers between the two accounts.

This would mean you could put anything over £2,500 into the PlusSaver where it would be earning 5.5% rather than the lower rate offered by the Premier Direct.

Seems a good option, Genny

forgery

true however i didn't realise it carried the implications of a current account and the Kaupthing account has 6.5%

from reading that link Baldur, it really does seem Kaupthing appears my best option. I do want the best rates but instant access is also important at this stage of my life. I will certainly consider long term accounts but it just doesn't feel the right thing to do.

I think i will stick with my original thoughts and put my money in Kaupthing.

Any other/final thoughts?

Many thanks for all the advice!

Forg

Baldur

I've only just opened a KE account myself, so can't comment on their efficiency but initial impressions are good so far.......

You also have the option, should you wish to do so, to open fixed rate accounts with them at a pretty good rate (currently) but the minimum deposit is £5,000 (from memory).

Baldur

Meltdown_2

forgery wrote: »

Any other/final thoughts?

Be aware of the difference between "instant access" accounts and "easy access" accounts.

forgery

yea, I understand that Meltdown. Thank you though. Kaupthing it is then! thank you for everybodys advice!!

Forg