Full Version: Advice On Decent Rates
My GF has just come into some money, almost £6k, and was wondering if anyone knows decent savings accounts or bonds to put it in for a 2-year timeframe? We don't want to use the cash anytime soon so it's not a problem if we can't access it for those 2 years. We're both maxed out on our cash ISA limits so can't use that either.
JB put the whole amount in to the second safest back in England.......Northern Rock, good rates and backed by endless amounts of taxpayers cash.
QUOTE (Sparkie @ Aug 30 2008, 07:57 PM) 
JB put the whole amount in to the second safest back in England.......Northern Rock, good rates and backed by endless amounts of taxpayers cash.
I agree, Norther Rock are now an institution JB they are offering over 6% with instsnt access.
If you prefer a bond then the Liquid Asset Fund diversifies your investment accross 40 cash accounts and returns 5.67%.
QUOTE (JohnnyB @ Aug 29 2008, 01:31 PM)
My GF has just come into some money, almost £6k, and was wondering if anyone knows decent savings accounts or bonds to put it in for a 2-year timeframe? We don't want to use the cash anytime soon so it's not a problem if we can't access it for those 2 years. We're both maxed out on our cash ISA limits so can't use that either.
In these interesting times I would urge people to think in terms of return OF savings not interest ON savings.
One issue with a 2-year bond with Northern Rock is that whilst its government owned now, it may not be in one or two years time. I was planning on putting my whole 100k STR fund into a one year Northern Rock bond. But if they privatise it, I will only be covered for 35k. So there's an element of risk even with Northern Rock.
For the OP, I wouldn't worry too much about rates on 6k, the difference between a high rate and a low rate is about five quid a year. Just buy a 2-year bond at your local building society, job done.
For the OP, I wouldn't worry too much about rates on 6k, the difference between a high rate and a low rate is about five quid a year. Just buy a 2-year bond at your local building society, job done.
The Chelsea building society have a 1 and 2 year fixed rate bonds paying 6.60% and 6.30% (gross) and they do a tracker bond paying 6.60% (1.60 above base rate + 30 days loss of interest until 17th March 2010).
A good thing with the the Chelsea is that with all their accounts there is a monthly interest option which you can choose and if you don't want the monthly interest payment you can leave this to roll up in the account and when you want it you can instruct them to pay it into another account.
However, I prefer competitive** instant access accounts, so I have Chelsea's Rainy Day Account paying 6.10%.
http://www.thechelsea.co.uk/savings/index.html
** I look to get a good rate for my savings, but I will not put it into an account just because it has a very high rate. In this climate when I see a bank or building society with a very high rate this starts to ring alarm bells.
As well as spreading my money for safety, I keep a fist full of gold sovereigns in my own personal central bank.
A good thing with the the Chelsea is that with all their accounts there is a monthly interest option which you can choose and if you don't want the monthly interest payment you can leave this to roll up in the account and when you want it you can instruct them to pay it into another account.
However, I prefer competitive** instant access accounts, so I have Chelsea's Rainy Day Account paying 6.10%.
http://www.thechelsea.co.uk/savings/index.html
** I look to get a good rate for my savings, but I will not put it into an account just because it has a very high rate. In this climate when I see a bank or building society with a very high rate this starts to ring alarm bells.
As well as spreading my money for safety, I keep a fist full of gold sovereigns in my own personal central bank.
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