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I have a sum of £6000, that I want to put somewhere to gather good interest. I probably won't be able to add to it, and want to be able to withdraw if necessary, without penalties. Can you suggest anything? Gail 

Answer

Dear Gail, in response to your question to the myeggnest website, if you are looking at deposit backed investments such as bank accounts, I would always advise using your cash ISA allowance first, you can put up to £3,600 per tax year into these and any interest is tax-free and money is easily accessible. I would be careful in the current financial climate though as most of the banks which are offering the highest interest rates are those which are in most financial trouble. Although you are currently covered for £35,000 under the financial services compensation scheme it would obviously be preferable to not go through a compensation claim, however the Irish government has said it will guarantee all deposits with the following institutions:

Allied Irish Banks plc (AIB), Anglo Irish Bank Corp, Irish Life & Permanent plc (Permanenttsb), The Governor and Company of Bank of Ireland, EBS Building Society, Irish Nationwide Building Society.

Please be aware that the interest rates are changing on a daily basis and are likely to decrease on the back of this news of a guarantee so if you would like some advice on the best one to go for when you are ready to make a decision please feel free to contact me, my details are included below, thanks, Steve

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH

Email: sweisner@myeggnest.com
Tel : 020 7382 0437
Fax : 020 73740462  

If you have a question for Steve or anyone of our other resident Expert, please complete our Ask the Expert Form HERE.

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