What are my options for a savings account?

Freeman · 2 Dec 2010 at 18:55

I have a substantial amount of money I'd like to put away and hopefully gain some interest on it.

I may need to access it so I can't lock it away in account and I can't invest it.

What are my options for the best way of making money with my money.

Thanks.

[TW]Fox · 2 Dec 2010 at 18:59

This depends entirely on how much money youve got - as the best option differs depending on how much you have and what rate taxpayer you are.

Both Santander and the Post Office are offering easy access accounts with rates of between 2.75 and 2.99%.

Pug · 2 Dec 2010 at 19:02

Whack it in a bank savings account, then each month take out £50, put it on black a casino and pay-in your winnings/mourn your losses. You'll probably come out with more after a 12month period than with regular savings, as whilst mortgages are cheap, and the rates low (win!) the savings rate is also stupidly low too.

Cash ISA is an option too, as at least you won't pay tax on that.

lakitu · 3 Dec 2010 at 14:39

Pug said:
Whack it in a bank savings account, then each month take out £50, put it on black a casino and pay-in your winnings/mourn your losses. You'll probably come out with more after a 12month period than with regular savings, as whilst mortgages are cheap, and the rates low (win!) the savings rate is also stupidly low too.

Cash ISA is an option too, as at least you won't pay tax on that.

Great advice, seeing as single zero roulette in the UK has a house edge of 2.70%. Pretty much cancels out the interest on your savings.

Stretch · 3 Dec 2010 at 14:46

Tbh they’d be better off calling them wealth erosion accounts these days because the only thing you save is the expense of spending the money yourself.

If you want your money to make something after inflation and tax are deducted you need to invest in something a little more uncertain. The best you can hope for in a savings account is to tread water and even that is very hard to achieve. Intrest rates are too low and inflation is too high.

anything I don't mind · 3 Dec 2010 at 15:08

Interest at the moment on savings is pretty non existent. You would probably loose more value too inflation than you would gain from the bank giving you interest. You would be better off buying precious metals or something that is more inflation proof'ish.

The only interest you will gain from the bank, is the bank being interested in ripping you off.

platypus · 3 Dec 2010 at 15:19

It depends entirely how much you have to invest.

A government gilt is probably going to give you the best::safest investment.