Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Do Financial Advisors give advice on savings accounts???

(11 Posts)
Becaroooo Tue 26-Jul-11 18:43:40

...we need the best interest rate for a lump sum til we need it and need some advice.....Would an FA be able to help?

RockChick1984 Tue 26-Jul-11 19:10:33

They usually only deal with investment products eg stocks and shares, so it depends on what you are looking for. You need to decide how long you are willing to tie the money up for, and if you are willing to have an element of risk to try and get a higher return on your money, or if you want a guaranteed interest rate. Also consider if you want to keep all of the money together or if you want to put (for example) a quarter into instant access, low interest savings, then put the rest away for (again, example)5 years to get more interest. Money saving expert or daily mail money are good to compare different products.

Becaroooo Tue 26-Jul-11 22:41:50

thanks!

Gonzo33 Wed 27-Jul-11 06:47:05

Becaroo,

If you do see a financial advisor please ensure they are independant and not your bank's advisor.

I know of some very good advisors - I forget where you are (seen your threads on property) but may be able to point you in the right direction.

G xx

chicaguapa Wed 27-Jul-11 07:04:30

Have a look at moneysavingexpert.com. He has a lot on there about savings rates. You might be able to sort it out yourself without having to pay a fee.

CogitoErgoSometimes Wed 27-Jul-11 07:22:32

As well as the moneysavingexpert website, I'd recommend you take a look at the www.thisismoney.co.uk website. It's a very good resource when comparing various savings and investment products and strategies. The 'best' interest rate will only be there if you're willing to take a risk with your money and invest in the market in some form. The next best will be bonds and other accounts where your money is tied up for a period of time. The least risk and most accessible are things like Cash ISAs where you are guaranteed a tax-free return but there are limits on how much you can deposit.

Depending on how much you have to save and over how long you want to put it away for, a combination of all three could be advisable. Do remember that if you have more than £50k with any single financial institution you're not covered by the FSA compensation scheme for the excess.

noviceoftheday Wed 27-Jul-11 07:31:52

Hi Cogito, the £50k has gone up to £85k. I would also say to OP, if you split money up make sure that they're actually with different financial institutions ie hsbc and first direct are the same group so the 85k limit applies jointly. The other posters are right in that my IFA doesn't cover bank accounts, which is v annoying!

noviceoftheday Wed 27-Jul-11 07:31:54

Hi Cogito, the £50k has gone up to £85k. I would also say to OP, if you split money up make sure that they're actually with different financial institutions ie hsbc and first direct are the same group so the 85k limit applies jointly. The other posters are right in that my IFA doesn't cover bank accounts, which is v annoying!

Becaroooo Wed 27-Jul-11 09:03:32

Hi.

Dh and I were discussing last night. Have checked out the moneysaving expert website and its very good.

Have decided we are going to cash in our ISA (with a local BS) as the rate is so dire its pointless leaving it in there.

We are thinking of putting the lump sum in a 1 year fixed rate savings account (no withdrawls in that time) and open a regular saver with our bank which according to MSE is the best rate around atm (8% if you save for a year with no withdrawls)

I have an online saving account for everyday stuff (although the rate is pitiful tbh)

Thanks for the advice!

CogitoErgoSometimes Wed 27-Jul-11 10:14:29

Check out other/better paying Cash ISAs before you finally decide because the interest on those is tax-free. The 8% you're being offered from a bank is an extremely good rate but it will be taxed 20% at source.

Becaroooo Fri 29-Jul-11 10:24:29

Hi cog

Have done some research and think we are going with a PO account...can add to it and its instant access (which we need really)

Also opening the 8% saver account too.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now