Best interest for a lump sum with access
83dons
Posts: 86 Forumite
What would be the best type of account to go for whereby I would have say £80k that I wanted to move to a new account and for it to generate as much interest as possible. It will likely not get touched in there for several years but I would prefer to have some kind of access should I need to make a withdrawal without too much hassle. Not interested in dodgy investment options that would be a bit of a gamble. However also not sure opening a regular bank account is the way forward as it may not generate much interest.
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Best places to head for are the two quick link articles above, titled 'top savings accounts' and 'how to start saving'.
Realistically though, if you're going to need access to £80K, you're looking at 1.3% at the moment, unless you split it into numerous smaller pots to take advantage of accounts offering 2-5% on a few thousand each....
P.S. Sorry to hear about Neale Cooper [assuming your name signifies what I think it does]0 -
If you aren't likely to need the cash in an emergency but still want reasonable access you could consider Paragon's 120-Day notice account issue 9 paying 1.66%. Put some cash in and immediately serve notice so you know you'll get at it in 120 days. No need to worry about the rate dropping because you get 120 days notice if this is going to happen. It's essentially a 120-day fixed rate account if you treat it that way.
Kent Reliance were doing a 60-day notice at about 1.45% I think.
Barclays do a flexible 3-year bond at 1.8%. Not the best rate for that time period but you can make 3 withdrawals during that time for up to 10% of your original deposit each time.
Spread it around a bit but it might be a good idea to also consider (as suggested by eskbanker) things like a Nationwide current account paying 5% on balances up to £2.5K for a year - you also get access to a regular saver that way.
Virgin bring out a new regular saver every couple of months too - these are easy access offering as many withdrawals as you like with a rate of 2.25% (admittedly only on small balances to begin with) but after a year you could have 6 or so on the go.
Don't forget ISA's too as you may approach your £1K tax-free interest allowance (if you are a basic rate tax-payer).
Depends how hard you want to work at it but these are all very low-risk. Something tells me, though, that you are after a bit more.0 -
Try NS&I. It!!!8217;s completely safe. We got 2.1% on a 3 year bond but we can get to it in an emergency0
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Terry_Towelling wrote: »If you aren't likely to need the cash in an emergency but still want reasonable access you could consider Paragon's 120-Day notice account issue 9 paying 1.66%. Put some cash in and immediately serve notice so you know you'll get at it in 120 days. No need to worry about the rate dropping because you get 120 days notice if this is going to happen. It's essentially a 120-day fixed rate account if you treat it that way.
Charter have a 95 day notice account with an interest rate of 1.67%.Did you really mean to put loose?
Lose: no longer possess, not to retain, unable to find
Loose: not firmly or tightly fixed in place0 -
You say you're not interested in dodgy investment options, does that mean you are interested in investment that isn't dodgy?
There are plenty of mainstream, non scam places you could invest which should give a much better return than cash and you could split money so some is in cash in case you need it and some invested to protect against inflation. Really depends if the date you need the money is set in stone and if you already have other cash/investments as well as attitude to riskRemember the saying: if it looks too good to be true it almost certainly is.0 -
Yes Neale Cooper RIP!
Hmm ok so does the 1k tax free interest allowance count if you are retired and just getting a pension? This is actually for someone who is retired. I have no idea how tax works and savings accounts to be honest.
Just looking for somewhere to park this cash for some years and ideally for it to generate some interest if possible as it is unlikely that any withdrawals will need to be made. I don't think we have the time to set up feeder accounts to maximise interest at smaller levels so would the notice account be the only option?
Investment seems to me to be a risk business a la gambling but I could be wrong on that. I suppose putting it in a bank is risky too in recent times.
It just seems to daft to have a block of money sitting in an account not being touched for it to be generating no added value.0 -
The £1,000 Personal Savings Allowance isn't "tax free". It is a 0% tax rate. Most won't pay tax on income that is taxed at 0% but as it is still taxable income some people do have a higher overall tax bill even though the interest itself is taxed at 0%.
But the PSA isn't of any use to lower income individuals. Before you can benefit from the PSA you have to have used up all of your Personal Allowance and the starter savings rate of tax, another 0% tax rate, which can apply to upto £5,000 of savings interest. So the PSA only becomes of use to anyone with taxable income over £16,850 (in the current tax year).0
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