E-Savings with Barclays

[jrtv]

I have been left �20000 and have put it into a e-savings account with Barclays which gives me 4.62 AER/ 4.54 Gross, should I look at bonds or isa, I won't need to touch it for 3 years.

[Ethel]

Are you a tax payer?

Are you over 60?

Do you have children under 16?

[jrtv]

I'm 61 and a tax payer with grown up kids

[Ethel]

You definitely should be looking at ISAs to avoid paying tax.


Coventry Building Society is offering a 60 day notice bond for the over 60s at 5.85% gross.
The same BS has a regular saver at 6% in the first year - but you can save only �2000 per month. Worth transferring from your Barclays, though!

Alliance and Leceister also do a direct saver at 5.8% gross.

So, take your time, look at ISAs and bonds as well as the savings accounts open to you. Many can be operated online, which makes things easier.

[dzug]

ISAs will cover only a small part of your �20K but are a start. �3K this year and �3K next if you get a move on and I think �3.6K in April 2008.

You should be looking at trying to get a higher rate than Barclays for the rest. A possiblity is Northern Rock's silver saver account (available to the over 50s) currently paying 5.71% gross if you get the online version. Very easy to open.

For 3 years shares or bonds are a bit risky.