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Savings accounts? High interest, but need access in a year

6 replies

nymphadora · 11/08/2010 14:15

Hopefully will have flat sale money soon. Will need to put some away for the CGT so want high interest but to be able to access it in a year.

I have no idea about ISAs etc so need v basic advice!

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nymphadora · 11/08/2010 16:36

bump

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nymphadora · 11/08/2010 19:21

Again

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nymphadora · 13/08/2010 14:05

Bump

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nannynick · 13/08/2010 14:45

Interest rates are appalling at present. I have an on-line account with Skipton which at the time I took it out was paying 2.25% (I think - it was something like that). They no longer do that account... but do a WebSaver account at 2% Gross pa (1.9% gross monthly if taking the monthly option).

What's CGT?

If you won't need all the money, then putting up to the ISA limit (5,100 for 2010/11 tax year) into a Cash ISA is worth looking at. It can be withdrawn early but is best if you can avoid doing so. Skipton do a 2.25% Cash ISA with no withdrawal penalties, interest calculated daily.

Halifax have a Reward ISA which is offering 2.6% for first year. Max of 4 withdrawals during the year. Minimum £1000 investment (not a problem for you, as you would be putting in up to the £5100 limit).

MoneySupermarket lists interest rates for Easy Access Accounts, and also ISAs. ING offer 2.75% for new customers for instant access savings and pay interest monthly.

MoneySavingExpert is a good place for reading about various types of account.

You will get higher rate with a 1 year bond... but you commit the money for a year.

Keep in mind that there is a maximum amount of money which will be reimbursed if the bank fails... so you may want to split the money across several different banks.
How Safe Are Savings - useful to read as it explains which banks are covered, which are not and also which banks are linked which is important to know as you get cover per institution, not per bank.

Chil1234 · 13/08/2010 15:15

Instant access and high interest no longer go together. CGT (capital gains tax) usually doesn't apply to the sale of your main home but you probably know that already. Second the idea of shopping around with a comparison site but be prepared that the rates are really poor.

nymphadora · 13/08/2010 15:49

Thanks. Won't have to pay until jan 2012 so will be able to do a year ( as long as sale goes through)

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