Let’s say you had £1000 to put into the long term emergency fund that will end up at £15, 000 and you had £173 to put towards your £1000 dip in emergency fund, what type of accounts would you put them in?
The goal is not to touch the long term emergency fund (so want relatively easy access but not necessarily instant access) , but the smaller dip in emergency fund should be one with good, easy, instant access.
All advice very much appreciated for this newbie :0)
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I would put the dip in emergency fund money (1000) in a savings account like hsbcdirect.com, you’ll get a good rate of interest and easy access to the funds, just transfer it back to your checking account. Or if you want it easier, then open up a savings account at your bank and link it to your existing checking account. For the long term emergency fund (15,000) I would suggest opening another high yield savings account.
I would put the £1000 into an Cash ISA if you don’t already have one – I think the best currently is with Barclays @ 6.5%. Failing that, I’d pick the one from Kaupthing Edge @ 6.5% (don’t ask, it’s an Icelandic bank but insured by the FSA).
For the £173, I’d put it in the Yorkshire Websaver account @ 5.75%. You get a cash machine card with this, so it’s very easy access.
Btw, I got my best buys from Moneysavingexpert.com
Thanks ladies!
Thanks for the link plonkee, that sounds great!!!
I’m really happy with my Icesave accounts, the Easy Access one still pays more than 6%. And no, I don’t care about the rumours regarding Iceland – as long as you keep less than 35k with any one institution you’re covered by the FSA anyway!