Advice needed on best savings route for Ј58,000

A question about : Advice needed on best savings route for Ј58,000

Hi all, I am overwhelmed by the choices and I need some points in the right direction. I have been ill for a number of years and unfortunately I allowed my savings to languish in zero to nominal paying interest savings accounts. I need to take control and make good decisions. I have no debt of any kind and our mortgage is paid off. I also have a instant access account for emergencies.

So the advice I need is for saving that I can lock up for 1-4 years.

I have Ј24,000 in a zero interest account in my local bank (Not santander).

2 x Isas @ Ј5645 in Santander with 0.5% interest total...... Ј11,291

Santander Bond that now pays 0.5% and is until Aug 2015(might be better to swallow the early withdrawal charge and move???).......Ј23,593

So approximately Ј58,000.

Best answers:

• You need to provide more information, really. Age, pension arrangements, emergency fund for starters
• There's no need to be overwhelmed by choices. Simply list out all the choices that pay the highest interest rates, and start filling them up. There is a handy list in the savings section of the main site (https://www.moneysavingexpert.com/sav...currentaccount) and then there are literally hundreds of threads on the forum with information.
  If you have account relationships with Santander who offer a current account paying 3% interest on up to Ј20,000, there is no excuse for ignoring that account entirely and putting over Ј20,000 in a zero interest account elsewhere. That seems to be a waste of almost Ј600 a year, before tax.
  Likewise with the ISAs and the bonds. How on earth would you choose to lock money away in a bond that only pays 0.5% maturing August? Are you sure it's paying you 0.5% and not some better rate while offering 0.5% to new customers? Bizarre. Anyway if it is not paying much interest you won't have much to lose by cashing it in early and moving it the money into accounts that pay 3,4,5% or whatever.
  If all of this cash is on top of your instant access account for emergencies then I wonder what you are actually going to spend your Ј58,000 on and when? Presuming you can do without at least some of it for the long term, transfer your cash ISAs which pay peanuts into an Investment ISA (S&S ISA) with any of the main S&S ISA providers and let it grow over the next decade or two. Or take some of the Ј58,000 and put in a pension. No wonder the choices are overwhelming ; pretty much anything you could do with your money is better than leaving it in an account paying 0% or 0.5%.
• You have provided enough information, 58K, 1-4 years. ???
  If you had said longer, 5+ years, I would have suggested gold.
  Up to 4 years you are looking at a serious gamble with equities, or 'zero' returns with cash accounts.
  Your call.
  ..._
• I agree I need a kick for allowing this, but as I said I was ill and these where taken out in 2011, after that I was in a situation where these type of issues were of no concern to me such was my illness. So everything was left hanging and decaying, believe me I wish things had been different but that's life. Things are improving now hence my questions.
  I checked the Bond and it now pays gross annually 0.50&% and net 0.4% in 2011 it was 3.05% gross and 2.44% nett. The Isa's is 0.50% anually in 2011 it was 3.30%.
  OK so more info:
  I am sorted with pensions via a personal pension.
  I am 55
  Emergency fund of Ј8000
  The Ј24000 in the zero % account was money I had in 5 different accounts (very low interest again) that last week I closed and moved to the one account so I can asap move from here to a better home.
  I have just rang my local branch of Santander to make an appointment to see them next week. Hopefully to open the 123 account.
• Open the open the 123 - transfer your DDs for power, council tax, water, phone to it so as to benefit from cash back?
  Consider a longer time frame for the ISA cash - maybe transfer to a stocks and shares ISA with say i web - you might choose the gross Acc version of a Distribution Fund - I have used Invesco Perpetual for a number of years and been content - not exciting but steady enough?
  Otherwise, if you wish to keep the ISA in cash, transfer to a product with a better rate.
  https://www.thisismoney.co.uk/money/s...rate-Isas.html
  Use high interest current accounts for the balance of the money?
  https://forums.moneysavingexpert.com/...=#post67759045
• If you want to keep the ISA status on the old ISAs, remember that you must ask the new provider to arrange a transfer.
  If you have not used your ISA allowance at all in this tax year then you can still pay up to Ј15000 into an ISA before 6 4 15, as can your partner.
  The allowance will increase to Ј15 240 per person on 6 4 15.
• I would open three Santander 123 accounts to get 3% on Ј60k
  Meeting the dd and income requirements is simple so just do it
  Of course if you are higher tax rate payers I would opt for an equity isa each, that would also take care of Ј60k
  Cheers fj
• Just be clear there are 2 of us, me and my better half wifey...
  I really appreciate all your help guys and have lots to think about over the weekend.
  Interesting point about the cash isa with today's rates not being as good as accounts like santander 123.