Best savings account for £1k+

Best savings account for £1k+

Author
Discussion

Stupeo

Original Poster:

1,343 posts

192 months

Wednesday 20th May 2009
quotequote all
I have £1,100 that my grandmother gave to me when i turned 18. It is currently sat in a childs savings account with Lloyds TSB. I need to move it to a proper adult account ASAP.

Where is the best place to put it? I know its not much, but it would be good to earn some interest on it over the next few years. I will also start saving say £50 a month into the account.

I am happy to lock it away for a few years im not bothered about needing access to it.

Thanks.

digger_R

1,807 posts

205 months

Wednesday 20th May 2009
quotequote all
A cash ISA is probably the best way to go. take a look at moneysupermarket.com or moneysavingsexpert.com to get the best deal

shamrock

980 posts

189 months

Wednesday 27th May 2009
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An E-ISA will give you a better return than a cash ISA.

Try www.Natwest.com

Cash ISA 0.60% to 2.00%
E-ISA 2.25% to 2.50%

Eric Mc

121,779 posts

264 months

Wednesday 27th May 2009
quotequote all
Are you in employment at the moment?

The_Doc

4,856 posts

219 months

Wednesday 27th May 2009
quotequote all
Stupeo said:
I am happy to lock it away for a few years im not bothered about needing access to it.

Thanks.
if you're not paying any income tax currently, and this is the real nub of the answer, then a fixed term bond is also good. You can't touch it for a while though..

Eric Mc

121,779 posts

264 months

Wednesday 27th May 2009
quotequote all
Stupeo - do you have earned income at the moment and are you paying income tax?

kryten

597 posts

224 months

Wednesday 27th May 2009
quotequote all

Plenty of Cash ISAs around at the moment over 3%.

ING have an instant access savings a/c paying 2.75%

On a grand, the difference between the top paying account and one that's just a more general account is only likely be a tenner anyway (unless you get one of the <1% accounts).

Eric Mc

121,779 posts

264 months

Wednesday 27th May 2009
quotequote all
Looking for a tax free account is academic if the individual is a non-tax payer. That's why I keep asking him if he currently pays tax.

shamrock

980 posts

189 months

Wednesday 27th May 2009
quotequote all
kryten said:
Plenty of Cash ISAs around at the moment over 3%.
Would you happen to have a link for one of these cash ISA's paying over 3%?

The_Doc

4,856 posts

219 months

Wednesday 27th May 2009
quotequote all
I would link you to the Natwest Cash ISA Plus account that I opened two weeks ago at 3.45%

but they've withdrawn it

looks like we're in for many more months at 0.5% base rate...

kryten

597 posts

224 months

Wednesday 27th May 2009
quotequote all

Barclays Golden ISA is currently 3.61% - not sure how long it'll stay that high but they are about if you look...

Good points from Eric about not paying tax BUT Cash ISAs can be found >3% at the moment whereas normal savings accounts at that rate are few and far between. Most have minimum investments etc so even if the OP is a non-taxpayer in this case an ISA may actually still be a sensible plan because of the rate (unless you aren't allowed an ISA because of not paying tax which I don't think is the case).