# Accounts advise please



## rf860 (Jul 24, 2011)

Hi guys

I've got some money that I want to tuck away in a savings account for around a year (savings for house deposit). I need some advise as to what kind of account(s) would be best to use in order to get maximum interest whilst still being able to access my money when I like. 

I've heard that isa account is probably the best bet for high interest rate but your only allowed to put £5500(?) in per annum. If this is correct, would I be best putting the maximum amount into the isa then the remaining into the highest rate of interest savings account on the market?


Any advise greatly appreciated!


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## Mike_Wizz (Aug 5, 2013)

I'm not an expert I'm sure someone here will know allot more than myself. I would suggest you are looking at an isa for your conditions. none have amazing interest as rates are poor atm.


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## Captain Peanut (Apr 19, 2011)

Hopefully someone more knowledgeable can give some input but personally I would put the max amount into an instant access ISA and the rest into a savings account.

Depending on your bank you may be able to get a savings account linked to your current account, I've got this through Barclays and Lloyds and get a slightly higher rate of interest and can move money around instantly if needed. If you know you aren't going to need the deposit for 12 months then a fixed term savings account or ISA will usually give you a higher rate.


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## Kerr (Mar 27, 2012)

I've never done it and not too sure of all the ins and outs, but I seen a programme not so long ago about peer-to-peer lending. 

Some people were getting good returns off that. 

It's just the fear if something goes wrong.


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## Will_G (Jan 23, 2012)

To me you'd be best going seeing an IFA however my advice would be to invest your maximum yearly allowance in an isa which is £11,520 of which half can be cash the rest would be stocks and shares. After that its really about the risk level you wish to take. You could look at high interest accounts or various bonds including premium bonds at the lower end to investing in stocks and shares at various risk levels.


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## m1pui (Jul 24, 2009)

A year isn't really long enough, IMO, to see much return on an ISA. The problem with a stocks and shares one in particular is that they are, as said, stocks and shares so are liable to drop in value as well as increase. Best bet would be speaking to an Indy Financial Advisor but I think you might get steered towards some sort of fixed bond where you can't (without penalty) withdraw for a set period (1 or more years) but you will get a guaranteed rate of interest.


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## rf860 (Jul 24, 2011)

Okay thanks for the advice guys. Really not looking to do anything risky simply because this money is very important, without it I couldn't buy a property.

The isa - the total allowance for cash per annum is £5760? Is that right?

I think I'd be best speaking to somebody at my bank. See what they've got to offer


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## Ravinder (Jul 24, 2009)

If you need access to it and only looking to keep it in a savings in a year or so then I would put as much as you can in a tax free cash ISA, maybe even consider fixing it for 1 year if you like if you don't need urgent access to those funds and the rest in another instant access savings account and if you do need access to these funds then you can do so. Although the rates aren't that great, an ISA is still a no brainer as it's tax free so it means you will get the full interest rate. Also, keep an eye out on the rates every month because if you do open an ISA at 1.5% let's say, that bank may increase their rates a few months later and you won't automatically get the new rate unless you ask for it. That way you can then upgrade your existing ISA if you wish to keep it with the same bank but get a better rate. So always keep looking. I normally check the rates once a month to see if there is anything better on the market.


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## rf860 (Jul 24, 2011)

Thanks mate, very helpful.


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## adlem (Jul 6, 2008)

If you can put it away for a year and not touch it then a 1 year bond is the best place to make most interest. I've just done one and got 3% depending on the amount deposited


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## rf860 (Jul 24, 2011)

adlem said:


> If you can put it away for a year and not touch it then a 1 year bond is the best place to make most interest. I've just done one and got 3% depending on the amount deposited


Ok thanks. It might be just less than a year cos my lease is for 10 months atm.

Will go in and have a chat to both my banks and see what they've got to offer. Tbh, the interest rates will probably be poor across the board!!


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## adlem (Jul 6, 2008)

rf860 said:


> Ok thanks. It might be just less than a year cos my lease is for 10 months atm.
> 
> Will go in and have a chat to both my banks and see what they've got to offer. Tbh, the interest rates will probably be poor across the board!!


They are everywhere else. ISA's and instant access accounts give very poor interest (usually 0.5% - 1.5% at best) Same story with access 90 and access 180 accounts.

If you can leave it for a year bonds are one of the best for interest rates. Obviously the more you have the higher interest you'll gain. If you have a local building society try in there - as they're usually owned by their members rather than corporations they can offer higher interest rates.


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## Ravinder (Jul 24, 2009)

rf860 said:


> Ok thanks. It might be just less than a year cos my lease is for 10 months atm.
> 
> Will go in and have a chat to both my banks and see what they've got to offer. Tbh, the interest rates will probably be poor across the board!!


Have a look online as some of the online based ISA's and other savings accounts can offer more interest then the one that branches and telephone banking offer since they are self service accounts. Don't let that put you off. My ISA is 2% because I opened it online whereas the branch could only give me 1.5%. It just means that If I wanna check up on my savings account or transfer money to and from I would have to do it myself online but that doesn't bother me.


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## rf860 (Jul 24, 2011)

.....


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## Andyg_TSi (Sep 6, 2013)

rf860 said:


> Okay thanks for the advice guys. Really not looking to do anything risky simply because this money is very important, without it I couldn't buy a property.
> 
> The isa - the total allowance for cash per annum is £5760? Is that right?
> 
> I think I'd be best speaking to somebody at my bank. See what they've got to offer


The cash ISA limit is £5760 in any one tax year.

Tax years run from 6th April - 5th April.

therefore the 'opportune' moment to open an ISA is on 5th April (the last day of the tax year.)

Deposit £5760 into an ISA on 5th April

the following day - 6th April, deposit a further £5760 (the next years ISA allowance) thereby investing £11,520 into the ISA within 24 hours
This way, you will be earning interest on all the £11,520 for the full year

Also, do you have any family members you can trust who don't currently have ISA's?

if so, get them to take one out & you give them some of your money to 'look after', thereby you can utilise 'their' £5760 tax free allowance
:thumb:


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## mart. (Jul 7, 2008)

I just leave my money in my santander 123 account, 3% interest om balances 3k-20k.


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## Ravinder (Jul 24, 2009)

mart. said:


> I just leave my money in my santander 123 account, 3% interest om balances 3k-20k.


Bank of Scotland do the same with their Vantage account, 3% as well.


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