Savings account

RioDunsden · 20 January 2019 at 10:44AM

Can anyone help me -

I have £2,000 to put into a savings account from my grandparetns. I’m new to all this savings account and would really like some help on where is best to put it and what not to use.
I don’t plan on taking any of the money out but would like to add to it when I can.

Thank you ,

Rio

daveyjp · 20 January 2019 at 11:19AM

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Harvic · 20 January 2019 at 11:37AM

For amounts <£5-10k you'll be best off with 'current account(s)' if you meet the required pay in criteria and number of direct debits (normally £1000+/month which can be shuttled between accounts and 0-3 direct debits).

You can earn 5% interest up to £2500 with nationwide for example and can get a monthly saver with them to save up to £250/month again at 5%. If you have a friend or family member who has nationwide they can 'refer' you to switch and you both get £100 for free!

If you don't have much coming in or worried about the direct debit requirements then the highest paying savings account you can access (currently ICICI tops that in the last couple of days but only gives you 1.55%). You can earn £1000 in interest if you're a basic rate taxpayer before paying any tax so don't worry about ISAs as no point and rates are worse.

ryannnking · 20 January 2019 at 1:44PM

Probably be best to open up a higher interest current account, such as Nationwide which currently offers 5% on the first £2,500 deposited.

This is a zero-risk option. If you won't be needed the money for 5-10 years you could look at investing the £2k, but this will require a bit of research and knowledge. So probably best to stick it in a high interest current account for now.

In terms of what not to do - don't gamble the money anyway and don't invest in anything you don't understand!

Ryan

Savings account

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