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MONEY COMMENT
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In Parts One and Two of this series, I wrote about my search for a better current account and a tip-top TESSA-only ISA. However, as part of my latest financial frenzy, I need to find a Best Buy savings account for some spare cash . Part Three: Finding a high-interest savings account About a month ago, I wrote about being caught up in the scandal surrounding the introduction of the new tax credits for families. My wife is receiving payments of around £5,000 a year that we're not supposed to have! We're keen to sort out this problem and return the money, but the Inland Revenue is unable to help us at present, because it's been overwhelmed by millions of applications and incorrect assessments. My wife has written to the tax credits office, asking it to stop paying her and reclaim these payments. In the meantime, we need to put this money somewhere safely out of the way until we hear from the Revenue. Hence my search for a no-strings, easy-access savings account that pays a good rate of interest. I started by checking our very own Savings Centre, where the best deal is with ING Direct, which pays a tidy 4.3% EAR on as little as £1. However, we were already planning to open an ING account for other reasons, and we'd like to keep our tax credit money separate. According to Moneyfacts, there are several notice accounts paying over 4% on £1,000 or more. However, we can't tie up this money, as we need to repay it on demand, so I turned to those internet-based accounts paying 4% or more with easy access. The highest rate is paid by Northern Rock's Tracker Online account: 4% plus a bonus of 0.31% for the first six months. Normally, I avoid accounts with introductory bonuses, as the underlying rate often becomes unattractive when the bonus expires. However, as we don't expect to hang on to our tax credit money for very long, this account sounds ideal. Applying and transferring money is all done online, with withdrawals made via BACS and deposits by cheque or BACS. So, in this series of three articles, I've outlined my search for a new bank account, a better TESSA-only ISA and a Best Buy high-interest savings account. But my search doesn't end there - I'm always on the lookout for the latest financial bargains! More: The Fool's Savings Centre | Hang on to more of your money with our Financial Health Check.