£90000 to save but where?

qwerty2911

Hi

I read over the site and its still really confusing.

I have £90,000 insurance payout and i need to know whats the best thing to do with it.

I am wanting to keep £20,000 so I have access to it but I still want it to gain interest but have no restrictions on withdrawing it.

The other £70,000 I want to put away somewhere that I cant touch it for at last 2 years (probably split it into £35,000 at different banks so it is secure as it said on this site) but also gain alot of interest.

I read that one was 7.2% and because I work and pay tax from my wages then the savings will also be taxed, now does the bank sort all that out so I dont need to do anything??

I really have no clue and hope you guys can head me in the right direction.

If you need any more info them please let me know. I want to get this all sorted out asap.

thanks

Steve_xx

If you want savings accounts then you should split it into lots of not more thn £35k. In reality you ought to split it into lots of about £33k in order to allow for the addition of interest bringing the total up to £35k within a year.

Yes the bank will discharge the interest tax liability for you and you need do nothing more if you pay tax at 20%. However, if you are a higher rate tax payer you would have to pay the difference to the revenue.

Kaupthing have an easy access account that pays 6.55%aer and a year bond that pays 7.15%aer.

http://www.kaupthingedge.co.uk/?gclid=COOb35__lZUCFQ6TMAodmHxQgQ

ICICI Bank have an easy access account that pays 6.16%aer and a year bond that pays 7.20%aer.

http://www.icicibank.co.uk/hisave.html

There are several other banks paying around 6.7% aer on easy access accounts. Bradford & Bingleys Internet Saver 3 pays 6.51%.

Hungerdunger

Or if you prefer to put your money with a Building Society, National Counties and the Stroud & Swindon currently have fixed rate bonds offering 7% or over.

whu

as you are a tax payer you might want to consider using you ISA allowance for part of the money you dont need easy access to - £3600 per financial year for a cash ISA or £7200 in stocks and shares ISA or split evenly between the two types of ISA - this pays interest tax free - the you should look into the accounts others have mentioned or see a financial adviser if you are looking for longer term investments

jimmy111

Steve_xx wrote: »

ICICI Bank have an easy access account that pays 6.16%aer and a year bond that pays 7.20%aer.

I'd steer well clear of ICICI. My experiences with them indicates to me that the IT is poor and their so called "customer service" delivery is dreadful (they don't listen and don't do as promised). It's not worth the hassle for a marginally better rate compared with their close competitors. I'll certainly not put any more of my money their way!