best bank account for �10k?

**rtj666** · 3rd August 2008

My folks have come in to a few grand through changing work conditions and cashing in of pensions and what-not.

Question is: what is the best way for them to stash (or put to good use) their new found riches of approximately �10k?

The bank obviously want their grubby paws on it, but it won't make them anything sitting in a stagnant bank account. ISA accounts have a limit of about �3.5k (from what I read).

Should they open an offshore account in Panama? Move to Jersey?

Any advice would be most welcome chaps.

**Argyll** · 3rd August 2008

Go to moneysavingexpert.com and all will be revealed.

**mysterym** · 3rd August 2008

A fixed term bond at a highsteet building soc coud be a good idea.

**gunner** · 3rd August 2008

2 x ISA's! I would go for as self select shares ISA and pick some well performing stocks in this financial climate (BP, Shell, Tesco).

**doughboy** · 3rd August 2008

Originally Posted by rtj666

ISA accounts have a limit of about �3.5k (from what I read).

That's what you can pay in each year, not the actual balance limit.

**eggon** · 3rd August 2008

Have they paid off their mortgage or any debts? probably best to do that then invest the rest of the money

**Q-Ball** · 4th August 2008

isa for you, and an isa for the mrs if you have one. Best way to avoid tax.

In terms of savings, ICICI is offering 7.2% interest if you can lock it in for a year, or its 6.55% with Kaupthing. I personally have a eSaver with alliance and leicester (6.5%), but the problem with that is you need a premier current account which you must top up with �500 a month, and you lose interest for any month in which you make a withdrawel.

Argyll is bang on, check out moneysavingexper.com - its a great site. If you have any other questions, just shout - glad to help/advise.

Q

**rtj666** · 5th August 2008

Thanks guys, I had a look at MSE and it seems like they'd be best with an ISA each for their cash. Hell, I might even open an ISA for myself!

Kaupthing Edge seem like a good bet, gets good write ups on MSE, with them having the best interest.

Although, and I might be acting a bit thick here, but would the interest be (for talking sakes) 6% interest (of �3.5k) each month? Or is it 6% each year?

Thanks for the tips!

**Mule** · 5th August 2008

It's per year

**Roach-Rampino** · 5th August 2008

Another option would be to buy Premium Bonds. It would mean that the money is always accessible and with a large amount like �10k they would stand a good chance of winning regular prizes.

**gunner** · 5th August 2008

Originally Posted by Roach-Rampino

Another option would be to buy Premium Bonds. It would mean that the money is always accessible and with a large amount like �10k they would stand a good chance of winning regular prizes.

I would not recommend premium bonds tbh, after reading about them on MSE.
http://www.moneysavingexpert.com/savings/premium-bonds

**Roach-Rampino** · 5th August 2008

Originally Posted by gunner

I would not recommend premium bonds tbh, after reading about them on MSE.
http://www.moneysavingexpert.com/savings/premium-bonds

I was only offering another option for their money.

I currently hold �20k worth and so far this year have received �1350 in prize money (won �50 yesterday). They are a safe, risk free place to put your money, it's instantly accessible and you don't pay income or Capital Gains tax on the winnings.

**Q-Ball** · 5th August 2008

And premium bonds are more fun! I only for a few K in them, but every time i "win" something from them, i get alot happier than i do when i get interest in my bank account. Also been quite lucky in the fact that so far i have won more each year than i would have in interest - i just keep plouging the winnings back into the bonds - they seem to be paying off!