You are reading a single comment by @hippy and its replies.
Click here to read the full conversation.
-
Bullshit: a 'savings' account that pays next to no interest, hence bullshit.
Which accounts give 5% for 1yr?
hippy-
http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits
http://www.hsbc.co.uk/1/2/savings-accounts/regular-savings-accounts
Both Nationwide and HSBC do, if you already bank with them. I've got a Nationwide regular saver maxed out to get the 5% after a year.
Drakien
What does bullshit mean?
You can get 5% for 1yrs from a number of saving accounts. It won't make you rich, but it's safe and inflation beating (for now).
If it was me I'd do that for a year then put the £3k into something like a stocks and shares ISA - depending on what things are like next year.
But if they're risk adverse, then I'd probably look as something, based on what you can get in the market.
The problem I think a lot of people have is when you are talking about small sums is they forget that a reasonable % of a small number = a small number.
They then think it is pointless. But what they forget is that you're really trying to build your pot so that in the future you're earning a reasonable % on a reasonable number. And if you're building your pot somewhere safe, then it may as well not devalue against inflation.