David Lock

My daughter wants to try and save say £200 - £300 per month and build up a fund so she can go travelling sometime next year. So needs a straightforward savings account that accepts Standing Orders without any "catches" like having to open a regular account or big penalty for withdrawal after 10 months or whatever. Ideally with high street access although an e-account would be OK.

I had a quick look at money supermarket but hadn't realised there were so many different things to consider

So I thought posting here could be a shortcut..........

Suggestions please?

TIA david

badgerface123

has she got an isa? if not start with that all high st banks do but check rates first


Cash ISAs: Earn 6.25% instant access tax free...

barclays currently pays 6.25% tax free but first year only

David Lock

No. But I thought you had to leave money alone for a year in an ISA for tax benefits but I am so out of touch I'll ask. Thanks, d

badgerface123

i not sure about barclays but i got a natwest isa and that pays monthly but not such a good rate.....i must sort it out tax man get to much of my money these days

NotoriousREV

One of these days I'll get infracted for spamming but until then:

High interest savings accounts | ISAs | investments - moneysupermarket UK

David Lock

Thanks Reverend

As I mentioned I had a glance at Money Supermarket but there are so many bloody choices/ terms that it takes a morning to wade through.

I'll probably just suggest Barclays as she has an account there already.

They do a savings account at 7.49% gross (5.99% net) although after a year the account changes and you get the grand net interest rate of 0.12% - generous eh?

They also do an ISA but gross rate is about the same as Savings account net rate at 6.08% which includes a bonus 1% although I am not sure what that is all about.

So nothing in it really and the odd 1% means sod all for the small amount she willl be saving

At this rate I'll soon be an IFA and earn squillions

NotoriousREV

The Halifax one at 10% on Moneysupermarket is better, but only if she's leaving the money in for a year and paying a regular amount.

rb5_336

if the isa allowance is used up, the next best instant access account with no penalties or fixed term is High Interest Savings Accounts - Kaupthing Edge Saving and Online Banking 6.5%

Sean

SunnySideUp

If she pays tax then an ISA is the first stop.

6.3% AER can be gained from IceSave, instant access and safe up to £35,000

David Lock

Thanks guys.

But the interest rates on some savings accounts - even after tax - are the same or better than the tax free ISA rates.

But you can shove more into an ISA as many savings accounts are limited to £250 per month. My daughter is also promised a Christmas bonus and, if she gets it , she could pay that into an ISA.

rb5 - Thanks for Kaupthing link. Seems attractive but I can't find anything on their site about max deposits so need to investigate further.

dl