Urgent Advice

Satchell's

I am soon to have around £170K being paid into my current account, but in bits and peices over a period of say 6 months (inheritance/house sale). The first payment being around £80K in about 2 weeks time. My long term plan is to buy a property - and rent it out. Meantime - I need to keep the money in a high rate interest account. - Any suggestions - I have an ING and an EGG account. Is ING the best? Also, on an interest rate of 4.65% what interest will I get per thousand per month - I can't work this out....!

Thanks in advance X

YorkshireBoy

Your "approximate" monthly gross interest per £1,000 will be...

£1,000 x 0.0465 / 12 = £3.88

For a basic rate tax payer, this will be reduced by 20%, so £3.88 x 0.8 = £3.10

For recommendations as to accounts, somebody else (currently next thread down) has already asked the same question but for £450K. The answers will be the same - so suggest you keep an eye on that thread to save repetition of replies.

Edit: If you're considering putting it all in one place, then read this first...

http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/

Stonk

ING pays 4.65% monthly (which compounds to 4.75% annually). For each £1K, you will receive NET monthly interest of between £2.85 in a 28-day month and £3.16 in a 31-day month (averaging £3.10). If you are a higher-rate taxpayer, you'll have to declare and pay more tax (and I wouldn't suggest, erm, forgetting to do so, because these levels of savings interest might ring bells at the Inland Revenue!).

ING is no longer the best payer, but not too far off. I'd suggest Brandford & Bingley as an alternative / addition. They pay a decent rate, not one propped up by an introductory bonus, and have been very good for me. You could get even more by choosing accounts with introductory rates, but put a note in your calendar to move the money when the rate drops.