graeme jones

Hi Guys
The wife and I are going to be starting a family in the new year and we want to do the sensible thing and prepare for it by paying the outstanding finance on a loan we have which will free up £300 a month.
We will be saving £700 or more a month and what I want to know is for the 7 months we will be doing this (7 months will easily pay the remainder off) does it matter what savings account it goes in to?
I currently have a standard savings account with the Cheshire Buildings society. Can you get a decent amount of interest back for this kind of savings for such a short period?
I am not too smart on ISA's and all that stuff so any advice is welcome.

pslewis

Post Office is paying 2.9% at the moment.

Best Savings account currently, operated online - take the monthly interest option.

SRSport

Is this tax free ISA? Nationwide do an 'e'ISA that offers 2.8%tax free. Santander offer 5% if yo uswitch to them plus £100 which would be the equivalent of an even higher percentage when worked out over the time and total amount saved.

stuart69

iTrader: (1)

would this be anygood to you?

http://www.skipton.co.uk/savings_and...saver_account/

SRSport

Nationwide and Santander will allow to withdraw money thoughand with a higher maximum savings. Santander require you to pay in £1000 per month but theres nothing to stop you taking it back out again and doing that every month.

pslewis

Santander have a very bad Customer Service record.

graeme jones

I was just reading an article about Santander being incompetent so may give them a swerve.
I have never heard of Skipton before don't think there is one local to me.

SRSport

Doesnt surprise me. I avoid anything that has 'made in Spain' on it. I dont know anything about Sandander in the UK but they were appalling in Ibiza.

jonc

Can't possibly use the Post Office bank. It's underwritten by the Bank of Ireland where the PO have to pay them 50% of their profits. The boss of BoI recently got paid €1.5million bonus pension top up!

graeme jones

Not too bothered about that more if they can offer me more back on my money?

jonc

If you're only going to do this for 7 months, go for a cash ISA, interest is paid tax free and you can take the cash out whenever you like without penalties. Beware of accounts that offer high interest, usually there is a tie in period where you will loose the benefit of the higher rate if you make a withdrawal with the investment period, usually 12 months.

SRSport

What is the highest interest rate ISA that people have found?

tony de wonderful

Have you tried Icesave??

SRSport

Didnt they collapse and owe a few billion pounds?