Best savings account?

Dirk Diggler said:
An update on this for you - I've just tried to transfer my son's JISA into an account with better returns for it's last 2 years, and the original provider is refusing to accept the transfer request because my signature doesn't match the signature I signed 16 years ago when opening the account.

I've now got who knows how many hoops to jump through if I want to get the transfer done.
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There's a good reason right there for only using digital accounts. That way you don't get any of that faff.

Hope you get it sorted.
 
ci_newman said:
Nothing, I'm using them for cash holdings in a S&S account :) Vanguard were offering a cash interest rate equivilent to the BoE rate, but have since dropped it to 2%. Moneybox continue to offer 3.25%.

It's my mortgage overpayment credit, so it stays away from shares.

For my actual investments, I'm using the Vanguard FTSE Global All Cap
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Any reason you don't put your money into Sterling Short-Term Money Market Fund - Income on Vanguard?

Says it tracks the 'SONIA' rate and with a risk rating of 1 should pay you nett of fees around 3.6% or so, will increase as the BoE rate increases as well.

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OldKitMan said:
Any reason you don't put your money into Sterling Short-Term Money Market Fund - Income on Vanguard?

Says it tracks the 'SONIA' rate and with a risk rating of 1 should pay you nett of fees around 3.6% or so, will increase as the BoE rate increases as well.

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Because a risk rating of 1 is still not a risk rating of 0, which means its unsuitable for money earmarked to cover a mortgage overpayment or emergency fund.

Moneybox gives me 3.25% with an effective 0 risk rating.
 
ci_newman said:
Because a risk rating of 1 is still not a risk rating of 0, which means its unsuitable for money earmarked to cover a mortgage overpayment or emergency fund.

Moneybox gives me 3.25% with an effective 0 risk rating.
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The fund in question has average maturity of 45 days, and is suppose to be for holding cash otherwise not invested. The risk rating vanguard uses is from 1 to 7, there is no zero possible.

I have mentioned before about risk ratings being mis-leading, instead the underlying instrument needs to be considered.

Your age is also important, with small portfolios you should be around 60 years old + then the risk ratings of make sense, unless you have a big portfolio, then they break down again.

My question is, what are your mortgage overpayment credit, is that money which is designated to overpay your mortgage, and you are holding it as cash there because they pay interest higher than your mortgage?
 
ci_newman said:
Because a risk rating of 1 is still not a risk rating of 0, which means its unsuitable for money earmarked to cover a mortgage overpayment or emergency fund.

Moneybox gives me 3.25% with an effective 0 risk rating.
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The chap in the video actually states he keeps his emergency fund in a Short Term Money Market Fund.
 
platinum87 said:
The fund in question has average maturity of 45 days, and is suppose to be for holding cash otherwise not invested. The risk rating vanguard uses is from 1 to 7, there is no zero possible.

I have mentioned before about risk ratings being mis-leading, instead the underlying instrument needs to be considered.

Your age is also important, with small portfolios you should be around 60 years old + then the risk ratings of make sense, unless you have a big portfolio, then they break down again.

My question is, what are your mortgage overpayment credit, is that money which is designated to overpay your mortgage, and you are holding it as cash there because they pay interest higher than your mortgage?
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The cash held is around £50k, and yes it's being held there because the rates are significantly higher than my mortgage rates (1.24% mortgage, 3.25% S&S ISA).

Age is irrelevant, this is cash that needs to be 100% safe. Bonds and short term money funds are not 100% risk free, period.
 
MMFs are not the only safe place for your money. Plenty of options for smaller sums e.g premium bonds totally risk and tax free £50k limit, if you can lock away for 6 months then standard savings accounts with 20% tax start to be better again zero risk up to £85k per bank. You can also buy gilts and hold to maturity, again totally risk free.

This from the US but you can bet the same risks apply anywhere.

The recent flows into money market funds have drawn the attention of Treasury secretary Janet Yellen, who on Thursday warned over the “structural vulnerabilities” of the sector. “If there is any place where the vulnerabilities of the system to runs and fire sales have been clear-cut, it is money market funds,” she said in a speech at a conference hosted by the National Associations of Business Economics. “The financial stability risks posed by money market and open-end funds have not been sufficiently addressed.”
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Macky said:
First direct are offering a current account switch where they give you £175 and access to a 7% AER savings account with maximum £300 a month pay in. Am in the process of switching to this myself!
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Just switched myself, it did take a week for the account to be opened but they paid the switching bonus very quickly. Also if I'm lucky I'll get an extra £70 from Quidco.

It's a shame the the regular saver doesn't give instant access to your money, you have to wait until the end of the 12 months.
 
Question about fixed term ISA

When you open a new ISA is there a maximum deposit upon opening?

From how I read it, Nationwide for example seems to say max is 20k, where as Natwest says there is no maximum deposit. Does it depend on the bank/building society?
 
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beachBOYken said:
Question about fixed term ISA

When you open a new ISA is there a maximum deposit upon opening?

From how I read it, Nationwide for example seems to say max is 20k, where as Natwest says there is no maximum deposit. Does it depend on the bank/building society?
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You can only put £20k in an ISA per year so while there may be no maximum single deposit they're probably assuming you're aware of the yearly maximum already.
 
tom_e said:
You can only put £20k in an ISA per year so while there may be no maximum single deposit they're probably assuming you're aware of the yearly maximum already.
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200sols said:
The maximum deposit is 20k per year, however you can transfer previous years which is probably why they say no maximum.
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So if I have a fixed bond, say with 50k when that matures I wouldn't be able to transfer the lot into an ISA?
 
beachBOYken said:
Bummer, I did have a cash ISA before as well, but switched to a Bond a while ago, oh well see what the layout is come maturity, guess I will just have to move my savings about a little. Start a new ISA and find other decent savings with good interest.

Thanks
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If you have a partner (that you trust...) you could have an isa each with 20k in both...
 
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