Managing Savings - Help, what should I do?

[nannynick]

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.

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.

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

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

I'd go for an instant access ISA.

...I take that back.

It was here yesterday, but has now disappeared!

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

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.