Which to choose for a few Grand

M

megabyte

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Want to put a few grand into a no risk.
Looking at two options and have to choose from 18% gross return after 4 years 4.22%AER or 6.50% gross 18 months 4.29 AER.
Which would be the best.
 
I presume you mean cash deposits so? In which case look at the Financial Best Buys lists of demand and term lump sum and regular saver deposit accounts/rates on offer and the many threads on mixing and matching these to maximise deposit interest returns.

Of the two options mentioned above the one with the highest AER will offer the best returns. But there may be other better options out there.
 
Thanks Clubman, yes deposit.
I have checked the threads but the rates are all good for the first year and then drop back to around the 4% mark anyway.
As I am coming out of one of these 7% rates I was looking to the next best thing and this is what was offered.
 
As far as I can see there are some one and two year fixed rate/term accounts offering more than the rates mentioned in your first post if that's what you're looking for. There are also better lump sum demand deposit rates (albeit variable) on offer too. What are you saving for and when will you need the money?
 
One account is for Childrens Allowance which we put away each month so it will be long term but will move down from 7% to one of the above next month.
We also have a few Grand which is in a 4% account.
 
For long term savings you should at least consider a low charges unit linked fund (not necessarily a high risk/reward fund if that does not suit) rather than deposits.

You can get significantly better than 4% even on demand deposits at the moment. And you can mix and match the various demand lump sum and regular saver accounts on offer to maximise returns for a little effort. This is all covered in existing threads and the Financial Best Buys lists.
 
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