Best short term savings account inc monthly paid interest?

sturgeon

I'm building up my savings until they reach £1000 which should be by July, then putting the lot into a Kaupthing Edge account. In the meantime I'm trying to find a savings account to put my money in as it's building up, and it's important it includes the following:

• The highest AER possible
• It allows me to withdraw the money after 3 months with no penalty whatsoever (inc no loss of interest)
• Interest is paid monthly not annually or it's a waste of time

Any suggestions? I know BM are good but they only pay interest annually. I'm trying Alliance & Leicester too (also as you get £20 quidco) but I haven't been able to access their homepage all weekend, it's down.

Thanks!

The_Fiddler_2

If you close the account after 3 months, it doesn't matter if the interest is anual or not, you will get all the interest that is due to you when you close the account.

sturgeon

Ah I didn't know that, thanks. I guess I'll open an account with BM then!

Grumpbucket

I'm a bit alarmed, after opening a Kaupthing Edge account, to read on the Internet that they may be the next Northern Rock. Any comments anyone?

The_Fiddler_2

Grumpbucket wrote: »

I'm a bit alarmed, after opening a Kaupthing Edge account, to read on the Internet that they may be the next Northern Rock. Any comments anyone?

Link us to your proof of this statement.

devonpaul

I was going to open an account and went tolook at fitch ratings as martin suggests and it says outlook negative:rolleyes: http://www.fitchratings.com/corporate/ratings/issuer_content.cfm

Grumpbucket

Hi, Fiddler,

Link as requested:

http://www.thisismoney.co.uk/ask-an-expert/savings/article.html?in_article_id=430852&in_page_id=111

chesky369

It's from February - and, as I'm sure you know, three months is a long time in banking.

The_Fiddler_2

Grumpbucket wrote: »

Hi, Fiddler,

Link as requested:

http://www.thisismoney.co.uk/ask-an-expert/savings/article.html?in_article_id=430852&in_page_id=111

Thanks but there is a different scare story for a different bank each week - maybe I should keep my pennies under my pillow