Does anywhere (safe) still have a decent interest rate for a sum of around £5.5k?

[dilemma456]

Message withdrawn

Interest rates are very poor atm, but you should be able to get a better rate than that. We've got a substantial 1 yr bond just maturing and are looking around for somewhere appropriate to put it. None of the rates look very appealing (especially compared to this time last year), but we'll just do a bit of searching around and pick the best.

I'm not sure of the current rate, but my money is in ICICI bank online. Its dead easy to transfer funds to your current account if you need to access it.

Tesco internet savings is still offering c 4% - instant access & live (same day) transfers to outside accounts.

Check out moneysavingexpert - several 4%+ on there (including ICICI)

Look on moneysupermarket.com for the best rates available. I looked for my mum the other day and think that Anglo Irish, Alliance and Leicester and Tesco all have some good rates. Tesco have bad reviews on that sight for the account being a nightmare to open and also a couple of people saying it was very difficult to get their cash out so personally I would avoid them.

Inc a 1.5% bonus Tesco are actually offering 6% atm but the website mentions that applications are taking longer than normal (because they are swamped, obv )

You have to get in before 7 Jan; but then their rates will be going down 0.9% on 8 Jan - still 5.1% though.

I'd not heard of ICICI before, are they mainstream?

Getting money out of Tesco is no problem at all - once a link is set up to your current account it goes straight over. They use the same software as Natwest & Nationwide & you have to have a card reader for some transactions.

It does take a couple of weeks before the account is up & running - there are 2 or 3 stages of security.

Aren't ICICI Bank of Nigeria? Or are they Indian? Am getting confused

Indian - Martin Lewis sounds a bit wary - suggests keeping your money in Europe!

I agree with Ponders re ICICI that Moneyfacts has been saying be a bit wary.

The other thing to do is to look at fixed rate bonds. You won't get the most amazing rate but there are some at about 4.5%. You lock your money away for a certain amount of time so not suitable if you think that you will need access but if you can tie it up for about 6 months you should be ok and obviously you still get that rate if (as expected) the Bank of England further cuts rates in the new year. There are links from moneysupermarket and moneyfacts if that helps.

Post Office are at 2.75%, not great but instant access and better than 0.75%

I was recommended ICICI buy Martin lewis in the first place! Yes it is an Indian bank, and as I can't forecast the future it could all go tits up. But so far, so good, for me.

ING Direct seem to be offering 5% for new customers - don't know how long this bonus period is though. It's an instant access online account.

I think he would have recommended the Icelandic ones too (before their economy went tits-up), mrsm

There's no reason to assume ICICI will have problems, but for the sake of a couple of percentage points, with a new account it's probably wiser to stay closer to home.

How about Premium Bonds? Not a massively high interest rate but they are safe and you have a chance of winning £1m every month!

here are a few.

Not sure I trust that Lewis geezer, he has too much of the red-braced 80s spiv about him for my liking.

ICICI is an Indian bank, but my understanding is that it holds a UK banking licence and is therefore covered by Government guarantees.

...that said, I shall not be putting any of my cash in there.

I'd stick it one of the better fixed term bonds. If you took the Chelsea BS 6 month bond you could put the 3600 in your ISA on maturity, perhaps?

...don't think Premium Bonds are that good an idea for this sum of cash. The likelihood is you could go a year and bag 50 quid if you are lucky.

(I speak as a Premium Bond fan. But I am lucky enough to have the maximum 30k invested there. It has given me about £1300 over a year, tax free and not counting as income for Tax Credit purposes, which has to be good. I think it wouldn't work so well for smaller amounts though)

dilema, do you have absolutely no debts/mortgage or anything to pay off instead?

Message withdrawn