What is the best saving account for me?

This-time-next-year..._3-2

Firstly let me thank you for any advice you give me in advance!

Here is my situation...

I want to set up a savings account which I will be depositing a few thousand pounds in for about a week every month. I need total access to this money whenever I need it and am looking for the most reliable account with the highest rates.

It does not matter if the account is a high street bank or an internet account.

The thing that confuses me is that some accounts calculate interest daily and others monthly. If I only have the funds in the account for a week or so will I lose out on the interest if I go for the monthly option?

Any help or advise will be gratefully received!

Thanks

YorkshireBoy

This-time-next-year... wrote:

I want to set up a savings account which I will be depositing a few thousand pounds in for about a week every month. I need total access to this money whenever I need it and am looking for the most reliable account with the highest rates. It does not matter if the account is a high street bank or an internet account.

Most of the internet based accounts allow you more or less instant access to your money. However, this "instant access" means 3/4 days (5/6 if a weekend involved) whilst they transfer your money to your nominated external account, ie your current account. Check out a comparison table at

http://www.moneyfacts.co.uk/savings/search/start.asp

However, I have recently been looking at the Yorkshire Building Society's "Internet Saver" account. This is currently paying a reasonable 4.7% gross rate, and this rate has already been cut following last month's BOE rate cut. This particular account has the added benefit of a link card option - allowing you absolutely INSTANT access to your cash. However, if you need to draw out "thousands" at a time it may not be suitable for you due to a max (I think?) £350/day limit on withdrawals. Check out this deal at

http://www.ybs.co.uk/savings/online/internetsaver/keyfeatures.jsp#link

This-time-next-year... wrote:

The thing that confuses me is that some accounts calculate interest daily and others monthly.

It doesn't matter as a rule because when "calculated daily/added monthly interest" is compounded up for the year, the net result is the same interest as if it were all paid at the end of the year.

This-time-next-year... wrote:

If I only have the funds in the account for a week or so will I lose out on the interest if I go for the monthly option?

No.

Finally, there are many savings articles on this site which can be accessed through the yellow "savings" box to the left of this screen. Have a read and post back with any specific questions you have.

alared

After the latest round of cuts for a straight forward "clean" account with no gimmicks,ING Direct paying 4.75% apr is hard to beat.
Interest is calculted daily and added to the account at the end of each month.

YorkshireBoy

alared wrote:

After the latest round of cuts for a straight forward "clean" account with no gimmicks,ING Direct paying 4.75% apr is hard to beat.
Interest is calculted daily and added to the account at the end of each month.

I agree - I have one myself and account operation is very good, but I wanted the OP to have a look at the tables and do a little research him/herself rather than "recommending" a particular account.

I mentioned the YBS account by name because (I think) it's unusual to get a high interest internet account that has INSTANT access to your cash - via it's Link card.

mdb99jh

alared wrote:

After the latest round of cuts for a straight forward "clean" account with no gimmicks,ING Direct paying 4.75% apr is hard to beat.
Interest is calculted daily and added to the account at the end of each month.

Bradford and bingley do an easy access 4.85% e-savings account.

YorkshireBoy

mdb99jh wrote:

Bradford and bingley do an easy access 4.85% e-savings account.

The rate is good, but...

1. You need an initial £1,000 to open it.
2. Balances under £1,000 attract a derisory 0.5% interest.

Might not suit everyone.

mdb99jh

This-time-next-year... wrote:

I want to set up a savings account which I will be depositing a few thousand pounds in for about a week every month

Sounds like he/she should be ok for the £1000 minimum

This-time-next-year..._3-2

Thanks for the replies!

Looking at the options so far I think that ING Direct looks like the front runner. Although I will be putting thousands in every month - it will only be for a week to ten days. This rules out the bradford and bingley account as the account will not have £1000 sitting in it constantly.

The only issue with ING Direct is the time it takes for the transfers in and out of the account (3 Working Days) but I assume it will be the same for all accounts of this type. I have phoned them up and they are sending out an information pack.

I will keep you updated and let you know how things go.

Rikki

If you have the deposit account in the same place as a current account the transfers are instant between accounts and you can just withdraw your money from the current account.

sfxdan

Hi,

I have £1000 i want to put into some kind of an account and let the interest work for me for once, and get the highest interest rate possible! A friend of mine told me that fixed term bonds were good because you can have either 1 year of 3 year terms with an interest rate of about 8%, im yet to find such a thing!

I dont mind having the money locked away for 3 years, as i dont really want to spend the money anyway! But im completely confussed by mini ISAs, saving accounts etc...

What would you recomend?

Thanks Dan