Where should I put my £35k?

By THIS IS MONEY
Updated:

 

WHO is offering the best postal/internet account for a one-year investment with a guaranteed rate of interest? I have £35,000 to invest. NC, Hawkhurst

This is Money replies: According to This is Money's best savings rates tables, these are your best options:

Bradford and Bingley's internet-based eSavings account offers 5.25% interest, with a minimum investment of £1,000. This rate is guaranteed to at least match the Bank of England base rate until 31 Dec 2005.

Northern Rock Silver Savings, which can by run by phone or post, offers 5.22% with a minimum deposit of £10,000. However, this account is available only to savers over the age of 50. It guarantees the annual rate will at least match Bank of England base rate until January 1 2010.

If you are under 50 there is the Leeds & Holbeck Direct Saver account, which pays 5% on a minimum investment of £5,000. This is a limited issue postal account, paying 5% or base rate - whichever is higher - until 30 September 2005. From this date it will match base rate until 30 September 2007. Minimum withdrawal is £1,000.

Finally, you could look at a fixed-rate account. Derbyshire Building Society is offering 5.25% fixed for a year, with a minimum deposit of £15,000.

TOOLS: Best Savings Rates, updated weekly

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