34K needs a new savings home...

polus_

Hi All,

Just thought Id post on here as Im not 100% sure where to put my hard earned

I have 34K to put into savings account of which 30K is a house fund. I cant afford to loose this money so I dont want to put it into a bank not covered by the Financial Services Compensation Scheme.


£3600 into an ISA.

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HSBC Cash e-ISA 6.08% Tax Free
http://www.hsbc.co.uk/1/2/personal/savings/cash-e-isa



£26400 into a account and doesnt need to be touched (1 year fixed bond?).

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Hmm, not sure...

Kaupthing Edge 12 month Fixed term
http://www.money.co.uk/savings-accounts/savings-account-details/Kaupthing-Edge/12-Month-Fixed-Term-Deposit-Account-ExC.htm
7.01% (http://forums.moneysavingexpert.com/showthread.html?t=947721)

BRADFORD & BINGLEY - High Life 2-in-1 Saver Issue 2
http://www.moneysupermarket.com/savings/SavingsDetails.asp?SavingsID=24805&Amount=30000&Results=6&Lender=
8.00% AER

The B&B, surely thats too good to be true. Either something in the T&C or they're about to go belly up?



£4000 into a accesable savings account (growing car fund)

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Will have £1500 per month going into it until Novemmber and then be closed or have little balance.

ALLIANCE & LEICESTER eSaver 6.50%
http://www.alliance-leicester.co.uk/savings/index.asp?page=esaver&exp=30&cm_mmc=moneysupe-_-sup-_-ec20474000222299esaver-_-listings


Im open to other ideas of where to put the money but I gather that a savings account is the best place for it unless you are prepared to a) risk it or b) put it away for more then 3 years.

Thanks

LongTermLurker

polus_ wrote: »

Hi All,
£26400 into a account and doesnt need to be touched (1 year fixed bond?).

---

Hmm, not sure...

Kaupthing Edge 12 month Fixed term
http://www.money.co.uk/savings-accounts/savings-account-details/Kaupthing-Edge/12-Month-Fixed-Term-Deposit-Account-ExC.htm
7.01% (http://forums.moneysavingexpert.com/showthread.html?t=947721)

BRADFORD & BINGLEY - High Life 2-in-1 Saver Issue 2
http://www.moneysupermarket.com/savings/SavingsDetails.asp?SavingsID=24805&Amount=30000&Results=6&Lender=
8.00% AER

The B&B, surely thats too good to be true. Either something in the T&C or they're about to go belly up?
Thanks

"Half of the funds saved for 1 year with Bradford and Bingley as the deposit taker. The remaining half invested via an advised sale into a Legal & General investment bond. It is recommended that the Legal & General investment bond is held for at least 5 years, but ideally longer because surrender penalties apply in the first 5 years."

So £13200 would be invested in an Investment Bond - these aren't very good (I'm sure Dunstonh will comment further...) Also, considering the B&B shares situation, I would feel that putting new money into them just now would be like asking for FSCS cover :rolleyes:

I would happily recommend Kaupthing Edge, with the obvious limited experience; their service is second to none and fully regulated and covered in the UK.

As a comment, I think your idea of filling a cash ISA, keeping some as instant access and sticking the rest in a Term Deposit is a good strategy, but consider that after November you'll have no accessible cash - is that what you want?

polus_

Ahhh thought there might be something more to it! I cant say (looking at the share price) I was particularly keen on putting money into B&B.

Yeah its no trouble not to have no access to the money. As I will be part ex'ing my car, I've included a 2K'oh no' fund and will quickly build up some more after Christmas. I don't spend much on a monthly basis (rent a cheap/shared flat, no outstanding debts/finance..etc)

Thanks for your help!