Where to put £10,000 Quid...

kmhtkmhtkmht

I've never really saved money before and just really just realised the idea just now - where is the best place to stick the £10,000? It currently sits in a HSBC Online Saver account taking 4.75% Interest...

What are my options?

dunstonh

Probably in the same place as the other half dozen or so posts asking hte same thing in the last week or two.

[Deleted User]

ICICI's HiSAVE 5.4 %

Newcastle b/s 5.02 %

First direct E saving 5 %

elvis_bloggs

Tony_D wrote:

ICICI's HiSAVE 5.4 %

Newcastle b/s 5.02 %

First direct E saving 5 %

Oh thanks Tony, I'll stick my £15,000 in one of those.

[Deleted User]

Elvis,
just trying to work out which one is the easiest/safest to open.
I have a 'e-ISA' with first direct and have found there service very good, ''but''' to open a E saving a/c with them you first have to open a current a/c ( funded by wages or minimum of 1k per month).
I am happy with my current a/c elsewere, so am in no rush to change that.
Heard threw the 'grape vine' people have had trouble with 'ICICI', so am now leaning towards 'Newcastle b/s, paying 5.02 %.
If I can do better will let you know mate, T.

simosimpson

I can only advise that you are careful if using firstdirect because if you withdraw as little as £1 in any given month the company will not pay you your interest on the full 10k for that month

Its in the small print again!

JasonG_2

If your happy with the accout and service I would just say £10k at 5% gives £41.66pm, £10k at 4.75 = £39.58pm. Don't sweat the small stuff. Unless ya want to.

Stonk

JasonG wrote:

If your happy with the accout and service I would just say £10k at 5% gives £41.66pm, £10k at 4.75 = £39.58pm. Don't sweat the small stuff. Unless ya want to.

Indeed. And after paying tax, it's £1.67 difference per month. It is probably not worth shuffling the money to a new account for only a 0.25% increase in rate, given the loss of interest involved in doing so. It will take a long while to recoup the lost interest, during which time the rate on the new account might drop anyway.

ICICI would be worth doing - except that it's well known that they won't be paying 5.4% for much longer. Who knows what it will drop to. The CEO (or someone like that) is on record as saying that rate will last months rather than years. Oh, and ICICI suck.

scuzz

When I had this same amount of money to deal with, I put half in a fixed bond account for 2 years, I maxed out a fixed rate ISA for two years and the other in a high interest savings account, that only allows you to withdraw'/pay a minimum of £250. Seems to be doing ok.

Afahmaep

Have you got an HSBC current account. They are still offerIng their Regular Saver paying 8%.
Maximum £250 per month. Easy to set up via standing order

JasonG_2

Afahmaep wrote:

Have you got an HSBC current account. They are still offerIng their Regular Saver paying 8%.
Maximum £250 per month. Easy to set up via standing order

Would just say, watch criteria such as salary paid into account and no withdrawals for the year or drops to poulty savings rate.

Also, only max £250pm so on £3k that would be £240 pa. I have not checked this out but was told recently that the interest is calculated on the payments ie the last £250 would only get interest for 1 month etc. That would make the overall rate much less. As an ex banker (not cockney ryming slang), this sounds about right but check it out yourself, if you can find anyone there who knows.. :rolleyes: