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IAIN wrote:post office account...

Tomo wrote:Stick £30,000 in Premium Bonds.

dat8962 wrote:Technically, no-one else should be advising you how to invest money if they are not qualified and registered.

The top paying accounts...

Finding an account that is totally 'clean' i.e. plays no tricks like introductory bonuses and withdrawal penalties, and still gives a top rate is getting harder. So it's crucial you read the pros and cons and pick the product that suits you best.


Ulster Bank 3.46%. From £10k. Inc 0.5% bonus, but restricted access.

The highest rate possible is with Ulster Bank's e-Savings Plus account, if you've £10,000 to £100,000 to save. It pays 3.46%, including a 0.5% bonus lasting six months.

However, if you withdraw money from the account in the first six months, you only earn 0.5% interest for that calendar month. If you think you may need to get your hands on the cash, look elsewhere; otherwise this is great. Also, if you save under £10k in the account, you receive a nominal 0.01% interest.

The interest rate quoted on Ulster Bank's website is 3.26% AER; this is the rate you'd get if the money stayed in there for a year, encompassing the bonus and non-bonus periods. If you ditch and switch after the bonus drops, you can get the higher 3.46% rate.

Ulster Bank is fully UK registered, meaning you get £50,000 protection from the UK govt. Though it's owned by the RBS family (inc. Natwest), it is registered separately, meaning you can have £50k here, and in another bank from the group, and it'd all be fully guaranteed. For full info read the full Are Your Savings Safe? guide.

Investec 3.11% AER. Guaranteed good rate, if you've £25,000+

The High 5 account from Investec pays the average of the five highest savings rates in the market, currently 3.11% AER (as decided by price comparison site Moneyfacts), and it changes every Wednesday. The catches are that you need to save over £25,000 and give three months notice to withdraw any money, so only open this if you dont need instant access to your cash. It may also be worth you checking the fixed savings accounts section.


Sainsbury's 3% AER. Plus top rate guarantee.

If you've got £5,000, Sainsbury's Internet Saver pays 3% AER. Yet the big boost here is a promise that the rate will stay at least 2% above base rate for twelve months, thus guaranteeing you a decent rate. The catch is that if you withdraw any cash during the first year, the interest rate drops to 0.75% from that point on.

You can save up to £100,000 in it, and it's operated online. However, if you want this rate, act quick; it's a limited offer and is scheduled to be withdrawn on 7 April 2009.

Sainsbury's is part of the HBOS stable of banks, yet as it's a fully independent UK subsidiary for savings safety sake, you're covered up to the FULL £50,000 per person per financial institution.

ING Direct 3%. Inc. 2% GUARANTEED bonus for a year


ING Direct* pays new customers 3% AER from £1, with no max. Here, 1.978% is a fixed introductory bonus, lasting a year. Current predictions suggest savings rates will keep falling, so this ensures at least 1.97% interest for twelve months, with instant access.
This online and telephone account is NOT protected by the UK compensation scheme but the Dutch scheme, which covers the first €100,000. See the foreign banks section of the Are Your Savings Safe? guide.

ICICI 2.45% AER.

The UK subsidiary of Indian owned bank, ICICI* pays 2.45% AER in its online account, from £1. Some concerns were raised over its parent bank's stability, and one best buy table unlisted it. Our policy, however, is to include ALL top rates, plus any concerns so you can decide yourself.

ICICI is a full UK subsidiary, meaning in the event the bank went bust, you're fully protected up to £50,000 per person per financial institution. Even under £50k carefully consider whether you want to lock money into a non-European owned bank in the current climate.