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Managing Savings - Help, what should I do?

(7 Posts)
nannynick Mon 15-Dec-08 18:17:11

I have just logged on to my various savings accounts. None of they have a great deal of money in them but in total it amounts to just under £5,000.

Egg is giving me 3.25% AER, ING is giving me 3% AER, and KaupthingEdge (now ING) is giving me 4.55% AER.

Should I transfer all of it to the highest paying account?
Should I keep several accounts open, should a bank go under (I did have an IceSave account, so have experienced this situation)?
Should I just transfer the lot to Premium Bonds and not get any interest, instead gamble with it in the hope of getting a bigger payout?
Should I withdraw the lot and go and play Bingo?

I don't know what to do. Probably easier just leaving it all where it is, but I feel it makes more sense to get the highest interest rate possible, given how savings interest rates seem to be sliding downwards constantly at the moment.

EachPeachPearMum Mon 15-Dec-08 20:13:51

Definitely put it all in the highest rate account- providing the access regime is the same. Are these guaranteed interest rates or are they likely to change? Might be best to stick to one which offers a guaranteed rate, as they are predicting another rate cut.
Do you need to be able to get hold of the money, or is this long-term rainy day type savings?

You would be better off using your ISA allowance, as the interest rate will not be minus the tax- Egg Cash ISA is currently offering 4.55%, Scottish Widows 4.6%.
Or you could go for a fixed-rate bond- Anglo-irish bank (guaranteed by Irish govt, similar to our banks) is offereing 5% on 1 year bond, 4.5% on 5 year for example.

Tesco personal finance are offering 6 % on internet savings account from £1... but that is a bonus 1.5% for first 12 months, so you would need to shop around in a year's time again.

EachPeachPearMum Mon 15-Dec-08 20:14:26

Oh, and Tesco account isn't tax-free like an ISA of course...

retiredgoth2 Mon 15-Dec-08 20:16:19

If you can afford to stash it for a year Abbey still have a fixed term bond at 6.5%

nkf Mon 15-Dec-08 20:22:46

I'd go for an instant access ISA.

retiredgoth2 Mon 15-Dec-08 20:23:25

...I take that back.

It was here yesterday, but has now disappeared!

...shows how volatile the maket is, I guess...

nannynick Tue 16-Dec-08 12:57:32

Thanks for the advice. I already use my ISA allowance, this money is instant access for rainyday or misc house/car expenses. With job market as it is, not sure if I can risk tieing it up for a year, though will look into the rates for that. The tesco rate looks good so will look at that as well.

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