High interest savings accounts..?

[LDN]

Just took a remortgage on a property - raised the money to purchase another property cash - but that purchase is no longer happening and so I have £140,000 sat in my personal account. i want to put the money into a high interest savings account - that is easily accessible should I need to draw on any money. What are the best options for this amount of money?

[trickywoo]

More than one account for a start, just in case the worse happens.

NS&I normally have OK rates but I can't see you getting more than 1% to 2% instant access and no risk anywhere.

Can't you use it to reduce the mortgage you do have?

Edited by trickywoo on Friday 29th January 09:33

[C0ffin D0dger]

If you find such an account please let us all know

[steveo3002]

santander 123 account , 50k in premuim bonds and the rest in a 1.xx % instant access acc

pretty misrible intrest rates unless someone else knows more

[Robbo 27]

As others have said, interest rates are just bad. Premium Bonds are a low risk option, I get a return in prizes of 1% a year on average with the small chance of a big win.

Some of the comparison sites offer higher interest rates but with banks I havent heard of, I know that they have the same FCS guaratee but I still like to have my money with a bank that is known.

You might want to think about the stock market, especially if you can plan on leaving your money for 12 months +. A tipster was suggesting some of the oil and gas contractors like AMEC and Wood group, their share prices are low right now and are tipped to rise over the next year, especially with Iran opening up for oil services businesses.

Safer options are around of course, and the advice that you have already received is safe and good.

[cashmax]

Income bonds with NS&I at least whilst your are deciding. Only 1.25%, but all money covered and instant access.

[cashmax]

trickywoo said:

More than one account for a start, just in case the worse happens.


Can't you use it to reduce the mortgage you do have?

Edited by trickywoo on Friday 29th January 09:33

As suggested how about taking an offset mortgage on your place for £140K and then offsetting it. The cash is then instantly available if you need it and if you decide to buy somewhere else its going to be cheaper than anything else. The only reason not to do this is if you don't have any borrowings on your primary property.

[LDN]

Thanks for all the tips; as usual PH comes up trumps. I've no borrowing on my primary property - and so I'll look closely at all of the other options that' have been suggested.

The money was for an apartment that was amazing value and would have gotten me a great return - but it fell through. Competition is rife now for select properties in and around Manchester City Centre and also Media City down the road. I thought I'd nailed it... best laid plans and all of that!

[AyBee]

Depends on the effort you want to go to really and what your horizon is. There are a number of accounts which offer 4%/5% up to £5k but you have to set up standing orders to move the money between the accounts. Then there's the Santander 123 account, then maybe a little bit in Zopa or otherwise, then Premium Bonds. All a lot of effort, but you'll get a better return...

[Mr Overheads]

I would spread it across multiple P2P platforms e.g.
-Zopa (as already mentioned) zero bad debt risk due to provision fund 4% ish
-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%

P2P is obviously not FCSC backed, but tehre is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.

There are other platforms as well, the above are just some of the main players.

[cashmax]

Mr Overheads said:

I would spread it across multiple P2P platforms e.g.
-Zopa (as already mentioned) zero bad debt risk due to provision fund 4% ish
-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%

P2P is obviously not FCSC backed, but tehre is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.

There are other platforms as well, the above are just some of the main players.

A decent strategy, but unsuitable for the OP who wants quick access.