Best savings account for £1k+

[Stupeo]

I have £1,100 that my grandmother gave to me when i turned 18. It is currently sat in a childs savings account with Lloyds TSB. I need to move it to a proper adult account ASAP.

Where is the best place to put it? I know its not much, but it would be good to earn some interest on it over the next few years. I will also start saving say £50 a month into the account.

I am happy to lock it away for a few years im not bothered about needing access to it.

Thanks.

[digger_R]

A cash ISA is probably the best way to go. take a look at moneysupermarket.com or moneysavingsexpert.com to get the best deal

[shamrock]

An E-ISA will give you a better return than a cash ISA.

Try www.Natwest.com

Cash ISA 0.60% to 2.00%
E-ISA 2.25% to 2.50%

[Eric Mc]

Are you in employment at the moment?

[The_Doc]

Stupeo said:

I am happy to lock it away for a few years im not bothered about needing access to it.

Thanks.

if you're not paying any income tax currently, and this is the real nub of the answer, then a fixed term bond is also good. You can't touch it for a while though..

[Eric Mc]

Stupeo - do you have earned income at the moment and are you paying income tax?

[kryten]

Plenty of Cash ISAs around at the moment over 3%.

ING have an instant access savings a/c paying 2.75%

On a grand, the difference between the top paying account and one that's just a more general account is only likely be a tenner anyway (unless you get one of the <1% accounts).

[Eric Mc]

Looking for a tax free account is academic if the individual is a non-tax payer. That's why I keep asking him if he currently pays tax.

[shamrock]

kryten said:

Plenty of Cash ISAs around at the moment over 3%.

Would you happen to have a link for one of these cash ISA's paying over 3%?

[The_Doc]

I would link you to the Natwest Cash ISA Plus account that I opened two weeks ago at 3.45%

but they've withdrawn it

looks like we're in for many more months at 0.5% base rate...

[kryten]

Barclays Golden ISA is currently 3.61% - not sure how long it'll stay that high but they are about if you look...

Good points from Eric about not paying tax BUT Cash ISAs can be found >3% at the moment whereas normal savings accounts at that rate are few and far between. Most have minimum investments etc so even if the OP is a non-taxpayer in this case an ISA may actually still be a sensible plan because of the rate (unless you aren't allowed an ISA because of not paying tax which I don't think is the case).