The Lemon Fool

I'm looking around for a new savings account into which I can just plonk a lump sum and leave it until I need it (or some of it) which I probably will over the next year or so. The regular savings accounts while paying good rates of interest don't really suit my needs as it's for a lump sum rather than a regular monthly amount. The best one I've seen so far is the NS&I Direct Saver paying 0.95 with no notice or penalty. I already have a premium bonds account so shouldn't be to onerous a task to open one. Anyone got any other suggestions?

https://www.nsandi.com/direct-saver

You could consider the NS&I Guaranteed Growth Bond, Issue 62 which pays 1.5% fixed for a year, though you can access part or all of it with a loss of 90 days of interest

Tesco Bank Internet Saver 1.3% variable for 1 year, then 0.55%

Sainsbury's Bank eSaver Special 1.26% variable for minimum £30,000, 1.21% variable for £15,000 to £30,000, etc

--kiloran

There are any number of sites that maintain lists of the best paying savings accounts. Here's Moneysavingexpert's one: https://www.moneysavingexpert.com/savin ... easyaccess

Shows a 1.26% one and a few at 1.25%, so not hard to beat NS&I (on interest rate).

Scott.

swill453 wrote:There are any number of sites that maintain lists of the best paying savings accounts. Here's Moneysavingexpert's one: https://www.moneysavingexpert.com/savin ... easyaccess
Shows a 1.26% one and a few at 1.25%, so not hard to beat NS&I (on interest rate).Scott.

Seems to be missing the RCI one at 1.3%.

https://www.rcibank.co.uk/

supremetwo wrote:

swill453 wrote:There are any number of sites that maintain lists of the best paying savings accounts. Here's Moneysavingexpert's one: https://www.moneysavingexpert.com/savin ... easyaccess
Shows a 1.26% one and a few at 1.25%, so not hard to beat NS&I (on interest rate).Scott.

Seems to be missing the RCI one at 1.3%.

https://www.rcibank.co.uk/

MSE deliberately excludes RCI because it is protected by the French equivalent of the FSCS so there is an extra layer of hypothetical concern. Also deposits and withdrawals take a working day - not by faster payments system - so you lose a day of interest each time. Still it’s the account I use.

ICICI are currently offering 1.35% until 31 Jan 2019. Though having had experience of them, I wouldn't touch them again with a proverbial bargepole!

Thanks all. I had initially dismissed the Tesco one as the interest rate includes a 0.7% bonus which for some reason put me off - bit gimmicky. The Sainsburys one is for £30k+ which doesn’t apply in my case, I seem to have overlooked the Shawbrook one though - thanks Scott although I had checked the moneysavingexpert site.

Re the 90 day loss of interest on the NS&I growth bond that Kiloran pointed out, dumb question alert but does the penalty just apply to the amount you withdraw or the whole lot? It doesn’t seem to say. If the former I might just plump for that one with its 1.5% rate.

Not sure I would trust the ICICI either.

Fluke wrote:Re the 90 day loss of interest on the NS&I growth bond that Kiloran pointed out, dumb question alert but does the penalty just apply to the amount you withdraw or the whole lot? It doesn’t seem to say. If the former I might just plump for that one with its 1.5% rate.

The 90-day loss of interest only applies to the amount withdrawn

Can I withdraw money?
Yes, before the end of the term you can cash in all or part of your Bond online, by phone or by post with no notice. We will deduct a penalty equal to 90 days’ interest on the amount you cash in. You need to keep a balance of at least £500 to keep your Bond open.

--kiloran

Thanks Kiloran, that answers my question