We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Best Type of Savings Account for Cash Prize?
TheJasperCo
Posts: 6 Forumite
Hi there, basically I won some prize money in a competition and want to save half of it for after I graduate (next year). Problem is, I'm not sure what the best type of bank account would be to keep the money stored away.
I don't want to have the taxman take any of it before I get the chance to use it, so I've looked at a tax-free ISA. But, there's a limit to how much cash you can put in one of these, so the rest of it has to be invested as shares (I think?) This seems risky, so I was hoping someone could give me some advice about what to do with the whole amount of money to limit the amount taken in taxes (not so worried about added interest rates, just don't want it to be eaten up in taxes).
I don't want to have the taxman take any of it before I get the chance to use it, so I've looked at a tax-free ISA. But, there's a limit to how much cash you can put in one of these, so the rest of it has to be invested as shares (I think?) This seems risky, so I was hoping someone could give me some advice about what to do with the whole amount of money to limit the amount taken in taxes (not so worried about added interest rates, just don't want it to be eaten up in taxes).
0
Comments
-
Are you actually a taxpayer?
http://www.hmrc.gov.uk/rates/it.htm
http://www.hmrc.gov.uk/taxon/worked-examples.htm
http://www.hmrc.gov.uk/taxon/
http://www.moneysavingexpert.com/savings/best-cash-isa
You can save up to £5760 in a cash isa in this tax year- you could opt to save up to the same amount in a stocks and shares ISA but if you are uneasy about this then you just choose the deposit account to suit you. Re tax, see above.
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest0 -
TheJasperCo wrote: »
I don't want to have the taxman take any of it before I get the chance to use it, so I've looked at a tax-free ISA.
You will find that there are accounts that pay you more interest after basic rate tax than an ISA does.
They have / are being all discussed on the MSE forums. You just have to do a bit of research.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.8K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.6K Work, Benefits & Business
- 604.6K Mortgages, Homes & Bills
- 178.6K Life & Family
- 262.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards