Savings Help Needed!

[squidgster]

Anyone out there good with savings accounts? Basically, I am looking on behalf of a relative for a savings account for them to open in the next few days. They will be investing between �300,000 and �400,000. The money will only be in there for a matter of a couple/few months (somewhere between 2-4), and so they will need easy/instant access. All these AER's and variable rates confuse me! A few I have come across will only offer a rate of 2.5% ish if it's tied up for over 12 months, which wouldn't be any good.

Anyone either know what the best deal around is that would be suitable, or know where is good to get advice from?

Thank you muchly!

[squidgster]

Sorry if I appear a bit dense! The ING Direct Savings Account:

http://www.ingdirect.co.uk/savings/our_savings /about_our_savings/aboutoursavingsaccount.asp

Does this:

'New ING Direct Savings Account customers can enjoy a great variable rate of 3.00% AER (including a 1.97% gross p.a. bonus fixed for 12 months)

Our variable rate is 1.00% AER*. For more information on our existing customer interest rates please click here'

Mean that you need to have the money in there for over 12 months to get the rate of 3%?

[factor-fiction]

No it doesn't mean you have to have money in for 12 months. I take it to mean that the rate will fall in 12 months, but that won't matter to your relative

[factor-fiction]

Oh yes, don't forget savings are in theory protected only up to �50000 so the �300,000+ should ideally be split between half a dozen different institutions (if there are that many left) unless you use NSI

[Hymie]

Check available saving interest rates and conditions here:-

http://www.fsa.gov.uk/tables

With that kind of money to invest, it might well be worth taking professional advice, especially in relation to any tax payable. If the advisor cannot beat that offered via the link � say goodbye.

[Whoever]

You need to bear in mind the maximum compensation limit of �50,000 per person for absolutely safety. You also also need to be aware that many savings institutuions which you might think to be independent operate under the same FSA licence as others in their group. Check out : http://www.moneysavingexpert.com/savings/safe- savings#whatcounts which lists which institutions are linked together. I believe the government was thinking of increasing the amount of savings protection for short-term deposits of large sums of money. There might be an announcement in the April 22nd budget, but don't bank on it.
Also check out the Savings section on the moneysavingexpert.com website which lists the best savings deals. Interest rates are pretty dismal at the moment, and because the Irish economy is in dire straits, I suggest avoiding any Irish financial institutuions.

[Enterprise1]

By most peoples standards that is a lot of money. It would make sense to get advice from a professional.