can anyone recommed a high interest bank account - HotUKDeals
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can anyone recommed a high interest bank account

esims84 Avatar
9y, 8m agoPosted 9 years, 8 months ago
ive been give some money to put on a deposit for a house, but we are not quite ready to buy one yet, so i was wondering if i would b a good idea 2 put in a high interest account or put it sumwhere else.
esims84 Avatar
9y, 8m agoPosted 9 years, 8 months ago
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banned 1 Like #1
I believe you mean savings account!

Depending how much you have, I would suggest putting 30k or as near to as possible in premium bonds. Its a nearly no risk option. Of course you won't get interest but it is meant to be a 1 in 24,000 chance of winning so you should get some decent returns. I know people that have got more off them than the would in interest in the same amount of time. But of course it is not for everyone. On top of that it only takes 7 days to get your money out.
1 Like #2
You should put the monies in a high interest account in the names of the whoever the house is going to be purchased. Bear in mind the notice period on the account as the deposit will be required on exchange of contracts. You should advise your solicitor of the notice period you need. You will also have to provide evidence to your solicitor of the origins of the monies for money laundering purposes.
#3
thanx for your advice fireheaven and JDeal
banned#4
If it was me, I would split it between premium bonds and a good savings account. But really depends on how much you have to use and how long you have it for.
1 Like #5
I'm in a similar situation with money coming from a house sale shortly. It depends what you want. For my purposes the Coventry Building Society were the best and offer 5.75% with no notice needed to withdraw and as many free withdrawals as you want, but you need to have children to get this rate as it is linked to a savings account for child benefit. They also pay a decent rate of interest on a current account, with a much higher maximum balance than most (many current a/c's pay 5 or 6%, but only on the first £2500 or so, then it is 0.10%) The limit at the Coventry was £250000 or so, if I recall correctly.

The post office currently pay 5.5% on their no-notice savings account and have loads of branches, but charge £1 a withdrawal after the first 6 in any one year.

30 or 60 day notice accounts will pay a slightly higher percentage, but, of course, you can't get to your money as quickly if you need it. Some higher interest rate accounts penalise you a month's interest if you make a withdrawal, so it is worth looking carefully at the options. www.moneyfacts.org is a good place to compare accounts, but there are other sites as well. BBC2 ceefax lists updated best savings rates as do most newspapers once a week.

Obviously I don't know how much money you are talking about, but, although it is unlikely to be a problem, you should be aware that the maximum payable from any financial institution under the FSA's compensation scheme is about £32000, so if you have more than this it is worth spreading the money about a bit. I've worked long and hard (well, actually, the housing market has worked long and hard.........) for this money and couldn't take losing it!!

Hope this helps
#6
thanx merlinthehappypig, the money is to buy are first house and i wanted to try and get a bit more money raised on the deposit i think i will talk 2 are mortgage adviser and see what he says
#7
You can put £3000 each in an ISA for this tax year, then £3000 each more come the start of April. This would get you 5.25% or something on that, but that might be too little compared to the amount of money you are talking about.

(Would cover £12000 though)
#8
the money wont be in for long as we are looking for a house now, i just wanted 2 put in in a account til we found a house we like
#9
emmajk42
You can put £3000 each in an ISA for this tax year, then £3000 each more come the start of April. This would get you 5.25% or something on that, but that might be too little compared to the amount of money you are talking about.

(Would cover £12000 though)


Be careful with ISAs though, some require your money to be left for a certain amount of time before you can withdraw any
#10
ive just opened a cahoot savings account through quidco (£25 quidco!!), cahoot offers 5.25% interest on savings from £1, is that good?
banned#11
Its very good if thats after tax!

I doubt it though, but still an average rate - good with the quidco though.
#12
Had good experience with these and they are currently paying 5.7% gross

http://www.icesave.co.uk/online-savings.html

If interest rates move upwards as anticipated then their rate will move as well as per the following

The gross Annual Equivalent Rate of Interest (AER²) paid on all amounts is guaranteed to exceed the Bank of England Base Rate³ by at least 0.25% until 1 October 2009 and thereafter not to be lower than the Bank of England Base Rate until 1 October 2011.

Online only

Move funds via BACS between this account and your bank account and min deposit only £250.

Best of all no strings attached and easy access to your dosh.
#13
i dont know wot to do now im gettin confused, gettin a house is stressful, thanx again for the advice loupomm, kelly_o_fanatic n emmajk42
#14
the features

* Earn a great rate of 5.25%*A.E.R. with balances of
over £1
* No confusing bonuses, introductory rates or penalties for withdrawals, just one generous rate for all customers
* Annual or monthly interest deposited directly into your savings account
* 24 hour access, 365 days a year**

Making deposits & withdrawals

* It’s easy to manage your account online
* You can pay in money from your current account - whether or not you bank with cahoot
* You can withdraw by transferring funds to your bank account - whether or not you bank with cahoot
#15
It's probably taxable if it's just a svings account with Cahoot. The ISAs are tax free savings though - that's the good part.

I just opened one... and there are no fees for withdrawal, or set times to keep the money in etc etc... but this may differ between banks.
#16
i will look into loupomm and thanx pluves1
banned#17
As I said i depends how much you have and how long you pan to keep it. If its only months then it won't really matter what the rate because over that length of time it will be so little difference between the interest you earn.

That Cahoot one is taxable - if you are.

ISA's are ok but most will have a minimum term length, but have a big bonus of no tax.

Premium bonds are good but you would want to keep them for atleast sort of 6 months to be worthwhile.
#18
emm i dont know wot to do, the money will be in there till we find a house which cud be weeks or mths, the deposit is over 12k thts all im saying thanx jdeal
1 Like #19
The ISA account mentioned by emma is also tax free (As are all isa's),which is far better than the other savings accounts mentioned if you are a tax payer.Most cash ISA's are quite easy to get your money and are usually instant and with no penalties.
Alliance & Leicester are allowing new investors who open a premier current account to open an ISA with a great tax free rate of 7%.Also you can get £50 cashback via Quidco if you open an Alliance account through them.:)
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=flashprimarypremisaMar07
1 Like #20
thanz bazr, gonna talk 2 the oh and we will decided wot we gonna do
#21
bazr
The ISA account mentioned by emma is also tax free (As are all isa's),which is far better than the other savings accounts mentioned if you are a tax payer.Most cash ISA's are quite easy to get your money and are usually instant and with no penalties.
Alliance & Leicester are allowing new investors who open a premier current account to open an ISA with a great tax free rate of 7%.Also you can get £50 cashback via Quidco if you open an Alliance account through them.:)
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=flashprimarypremisaMar07

Remember cash ISA's are only good for up to £3000 - any more and you'd have to split the money between accounts.

The Alliance and Leicester account has strings attached. You only get the ISA rate of 7% if you open a premier account at the same time. On the Premier account you have to be 21 or over and pay £500 or more into your Premier account each month. The Premier account pays 1.5% on credit balances so if you dont remember to transfer the cash back out somewhere else you ain't gonna earn a decent rate on your cash.
#22
pluves1
Remember cash ISA's are only good for up to £3000 - any more and you'd have to split the money between accounts.

As emma mentioned earlier they could open one account each for 2006-2007 (Total £6000) and one account each,from April for the new tax year,making a grand total of £12000.
[quote=pluves1]
#23
bazr
As emma mentioned earlier they could open one account each for 2006-2007 (Total £6000) and one account each,from April for the new tax year,making a grand total of £12000.
[quote=pluves1]


[COLOR="Blue"]IMO that's the best idea and should work well as we are on the cusp of the financial year.

A few years ago our Financial Advisor suggested we have Nationwide ISAs. We were with the Alliance and Leicester but they changed from being a building society to a bank.

HTH[/COLOR]:)
#24
On the subject of big money - [COLOR=red]DONT PUT ALL YOUR EGGS IN ONE BASKET[/COLOR]


Important tips for anyone who is rich enough for these to be applicable:

http://www.fscs.org.uk/consumer/key_facts/Limitations_of_the_scheme/Compensation_Limits/

Compensation Limits

The maximum levels of compensation are:



[LIST]
[*]Deposits: £31,700 per person.

100% of the first £2,000 and 90% of the next £33,000.[/LIST][LIST]
[*]Investments: £48,000 per person.

100% of the first £30,000 and 90% of the next £20,000.[/LIST][LIST]
[*]Mortgage advice and arranging: £48,000 per person (for business conducted on or after 31 October 2004).

100% of the first £30,000 and 90% of the next £20,000.[/LIST][LIST]
[*]Long-terminsurance (e.g. pensions and life assurance):unlimited.

100% of the first £2,000 plus 90% of the remainder of the claim.[/LIST][LIST]
[*]General insurance: unlimited.

Compulsory insurance (e.g. third party motor): 100% of the claim. Non-compulsory insurance (e.g. home and general): 100% of the first £2,000 plus 90% of the remainder of the claim.[/LIST][LIST]
[*]General insurance advice andarranging:unlimited (for business conducted on or after 14 January 2005). 100% of the first £2,000 plus 90% of the remainder of the claim. Compulsory insurance is protected in full.[/LIST]The actual level of compensation you receive will depend on the basis of your claim. FSCS can only pay compensation for financial loss.
Compensation limits are per person (per firm and type of claim).
Slightly different limits and rules apply if you have a claim against an insurer or a bank that was insolvent before FSCS became operational (1 December 2001), or if your claim is against an investment firm that was declared in default before FSCS became operational.
#25
or as the Spanish police said after several people were injured at a football game - [COLOR=red]DON'T PUT ALL YOUR BASQUES IN ONE EXIT [/COLOR][COLOR=black](sorry!)[/COLOR]

I mentioned this earlier in the thread. It wasn't something I was aware of and, as my house sale is just going through and I will, temporarily, be rich enough for this to be applicable (though still poor enough not to be able to risk losing my cash...) it's a valid concern. I'll be splitting mine over several accounts just in case.
#26
The Halifax pay 6% gross interest on their high interest account - you must deposit £1000 per month though.

They'll also give you £100 for switching your current account to them!

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