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I have a little cash sitting in a current account and want to put it into something a little more useful than the 0.000% im getting currently. Would consider a 1-2yr fixed or similar deal. no i'm not going to buy a new bike with it.
Deals so far have been up to 2%, but sure there are better out there, just not found them yet.
From this week's MSE money tips, not an ISA account but decent reward...
£125 to switch, access to 5% saver, must pay in £1000+pcm to not be charged £10pcm.[b]Ends Monday 3rd July![/b]
http://www.halifax.co.uk/bankaccounts/landing/reward-current-account/
£125 for switching, paid within 7 days, plus £3 per month interest if you pay in £750+pcm with 2 direct debits and stay in credit.
Consider premium bonds - we put a sum of money in them for just under 1 year, needed instant access as we were looking to buy a house, gave us 2.65% over the year. Pay in, take out whenever you want, invest the prize money in more bonds or have it paid into your bank account. There's always a chance of a big prize as well.
If just starting off, it might be worth having a look at those mothly savers accounts - the rates are pretty decent but obviously you start with zero so they are basically halved, but still possibly better than 2%.
We're throwing a lot into a couple of those this year and the proceeds will be slid into an ISA come the new year. Was marginal in terms of better sum at end but every little counts.
If you don't have a house or retirement plan, the govt help 2 buy isa is unbeaten at 25% interest! The conditions are stiff, though. I think its currently with Hargreaves Lansdowne.
Depends on the risk you're willing to take.
I have some money in Funding Circle currently earning 6.3% (that's after fees, bad debt, etc) so I'm pretty happy with that.
There is a chance, albeit a very small one, that every "loan" I'm making may go bad.
I looked at premium bonds but saw the headline on the application page,not for those concerned about protection from inflation. Inflation is forecast to be c 3 to 4% for a few years now so i am sticking with the stock market. Sadly cash earns nothing.
We have a few thousand in the bank, a £100k mortgage, but also about £20k maturing from an endowment at the end of the year. Wondering about sticking it all in the mortgage and hoping we don't need it in a hurry. But this then does not allow for fluctuations in the house prices, or if the car needs a new engine...if, if, if...
Share Isa?
Is there a yearly limit as to how much you can transfer from a share isa to cash isa?
Share isa for 1-2 years isn't a good idea, shares are a long term investment. Premium bonds are a good shout. Most bank accounts have a cap on the amount they'll pay interest on, bank of scotland for example is 2% up to £5k.
Is that the right interest rate on premium bonds though?
Gary you are right, long term for a return with share isa, but at the moment cash isa are pathetic at the moment.
Nationwide we're doing a online current account offing 5% t&c applied
Some mortgages (mine) allow you to withdraw an over payment at a later date if required (if the car engine falls out...)
Might be worth checking.
Is that the right interest rate on premium bonds though?
Interest rate fluctuates as its a prize draw. You could get nowt, could get a million (huge odds against). I guess they've got us a reasonable rate over a year as we had 2 x the maximum amount invested. They're cashed in now, to pay for a house. I'd use them again if we had money for an unspecified time, needing instant access.
might look at that Nationwide deal, my wife already has an account with them, which may help with T&C. Premium bonds I've never looked at, maybe worth punting a few grand in and see what comes out...thanks
I made a similar decision this weekend gone.
A few grand sitting in an account not doing much.
Instant access needed, might need it in 6 months or might need it in two years - no idea when, but didn't want to lock it away.
Some of the interest rates available seem good initially but they often require you to switch current accounts, have direct debits, pay in "x" amount a month etc etc (none of which is feasible for me at the moment).
Ended up sticking it into Premium Bonds. Seems like much less faff.
Despite the small odds of coming away with any prize at all, it's worth a shot due to the pennies currently being earned.
The rate of return on Premium Bonds is not good - 1.15%.