What is the ideal bank account or ISA to have if you have over £17K in your account?

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    Hi all,

    I just wondered, what is best current account or ISA to have with a lot of savings?

    I wondered because most current accounts stop giving interest after a certain amount of savings in the account. Also not sure about how ISAs may benefit me, because they allow money which is under a certain amount to gain interest. I wondered the best way to maximise my savings as I rarely use an overdraft or any thing like that. Currently I am not gaining any interest on my savings in my current account. I am unsure whether to transfer all my money from my current account into a savings account so that I can control any spendings, but I guess I would not gain any interest from putting it all into a savings account either.

    Any help or advice would be great
    Thanks
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    Savings don't earn much anywhere. you can earn £1000 interest per year now without paying tax on it, so some benefits of ISAs have been lost. Take a look at the Santander 123 current account, seems best for those with higher amounts in their account. People like Jennie1987 are far better placed to advise on this, especially if you set up direct debits from one account to another to play them off and gain interest from several accounts.
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    (Original post by TheOcean)
    Hi all,

    I just wondered, what is best current account or ISA to have with a lot of savings?

    I wondered because most current accounts stop giving interest after a certain amount of savings in the account. Also not sure about how ISAs may benefit me, because they allow money which is under a certain amount to gain interest. I wondered the best way to maximise my savings as I rarely use an overdraft or any thing like that. Currently I am not gaining any interest on my savings in my current account. I am unsure whether to transfer all my money from my current account into a savings account so that I can control any spendings, but I guess I would not gain any interest from putting it all into a savings account either.

    Any help or advice would be great
    Thanks

    It completely depends on the money you have in terms of what has to be 100% free for your use but current accounts are providing great rates of interest rate now, and if you split your money up you can really maximise your interest. Let alone if you introduce switching bonus' so that you move a current account between banks and earn upto £200 within the first couple of months. I earn several hundred pounds a year in interest and even with the rate cuts from January you can earn 3% a year compared to the usual ISA which is 1.5%.

    Please note that if you are want to use your savings purely for buying a first home then the Help to Buy ISAs will always give you the best return on investments, and like with all of this there are lots of terms and conditions to bear in mind.

    The best place to look is Money Saving Expert. Ive linked the Current Accounts best for earning interest because I think it will be best for most people but they have the lowdown on the best Savings / ISA accounts as well. All extremely well researched and easy to understand :grin:
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    You could save it all in my account if you want.
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    Current Accounts. Divide between Nationwide Flexplus, Tesco, TSB, Club LLoyds and a few others. I get about 5%, going down to 3% soon. Moving most of my money to Tesco Bank
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    I have a bit less than you do, but I have it split across a club lloyds account, club lloyds monthly account, help to buy isa and a regular monthly savings account, the interest isn't great but it's better than the pathetic rate and isa alone gives you.
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    Id suggest splitting it as per the rough numbers on the attached, it will take work and you must meet all conditions (including more not outlined, please check first) but this is what will make you the most money outside of a H2B ISA or a LISA as we assume will be available next year.

    If you do want a Help to Buy ISA then Barclays pay the best bank interest rate on top of the governments 25% mortgage voucher at 2.27% but while you wait to fill it you might as well open the accounts Ive listed so that the bulk of your money is earning interest alongside it.
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    (Original post by Jennie1987)
    Id suggest splitting it as per the rough numbers on the attached, it will take work and you must meet all conditions (including more not outlined, please check first) but this is what will make you the most money outside of a H2B ISA or a LISA as we assume will be available next year.

    If you do want a Help to Buy ISA then Barclays pay the best bank interest rate on top of the governments 25% mortgage voucher at 2.27% but while you wait to fill it you might as well open the accounts Ive listed so that the bulk of your money is earning interest alongside it.
    Thanks Jennie,

    I wondered if I could open an H2B Isa, but would it matter if I later decided not to buy a house? Or can I only use the interest to help buy a house when I have enough saved?

    Also a query about some of the accounts require a payment of £1000 per month, but they expect you to save no more than £2500 savings in that account; how does that work if you wont use that account for having wages paid in (as it would go past 2500 fast). So would you need to maintain a limit of £2500, by transferring £1000 every month to that account and then moving money out to make sure it doesnt go over £2500?
    Apologies for this sounding confusing, but the process does seem like it.

    Thanks x
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    (Original post by TheOcean)
    Thanks Jennie,

    I wondered if I could open an H2B Isa, but would it matter if I later decided not to buy a house? Or can I only use the interest to help buy a house when I have enough saved?
    If you decide not to use the money for a for your first house deposit then you only profit from the bank's interest rate (Barclays as an example would be 2.26%) and do not collect the 25% voucher from the government (via your solicitor). Therefore it makes more sense to save it in a current account or a monthly saver which bank vs bank have a higher interest rate in cash terms.

    Also a query about some of the accounts require a payment of £1000 per month, but they expect you to save no more than £2500 savings in that account; how does that work if you wont use that account for having wages paid in (as it would go past 2500 fast). So would you need to maintain a limit of £2500, by transferring £1000 every month to that account and then moving money out to make sure it doesnt go over £2500?
    Apologies for this sounding confusing, but the process does seem like it.
    Yeah it is confusing initially because they don't want too many of us profiting from it so you can go over the max but won't get the good interest rate on the extra amount. What I do, because I've set it up for any new savings to only benefit my H2B ISA, is everything pays into each other at the qualifier amounts needed on one day and then the next day they each pay the other back the same amount. It's easiest for you to do it all on the same day and take the highest value so all the transactions cancel each other out in one go and it isn't as confusing; For example if you need £500 in A to get the interest, £750 in B and £1000 in C, on one day set up a monthly standing order so account A pays B £1000, B pays C £1000 and C pays A £1000. It doesn't matter how much you have in each as long as they meet the monthly amount you've set up (£1000 in this case). And if you find any exceed the level where you get the good interest rate you don't get penalised by the banks, you just aren't using the extra money effectively because you could open another new account with a good interest rate on it. If you do expect to save more than your £17k I would add in Santander or if it's a minimal monthly amount (usually £25-£250) my preference would be a higher rate monthly saver but that's with harsher rules as it locks you in for a year before you get given your interest on it.

    Thanks x
    I hope you find this edited quote makes sense of it all but let me know if you need anything else. Like I said, grabbing a switching bonus would be great too, but I know I've thrown a lot at you already.
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    (Original post by Jennie1987)
    I hope you find this edited quote makes sense of it all but let me know if you need anything else. Like I said, grabbing a switching bonus would be great too, but I know I've thrown a lot at you already.
    Thanks Jennie, that helped so much !
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    (Original post by TheOcean)
    Thanks Jennie, that helped so much !

    Aw glad to hear it!! :five:
 
 
 
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