Just looking at options for a 20K lump sum. First Active's [broken link removed]guarantees 22.30% gross (AER 4.11%) over a 5 year term with access to your funds.
What are the chances of this outperforming Rabo/Northern Rock deposit rates over the 5 year period? My fear is that interest rates are peaking and could start going down fairly quickly in Rabo/NR, whereas the elevator rate are guaranteed.
If you think rates are going down and are looking for security then you have answered your own question really and should go with the elevator a/c. However, I don't think you will find many takers on rates going down over the next year at least.
Also, if you're investing for 5 years it is likely that stock markets will outperform cash over that period. Why not dump it into NR and contribute 1000 per month into a low charging fund?
Thanks Calico - I have already invested some of my savings into stocks. This is the bit I am keeping for a rainy day...I think I might go for the elevator, as it has guaranteed returns and funds are accessible should I need them.