completely confused!!!

getreal_3

I have already asked this question but didnt get much response and now am even more confused. I have approx £4.5k to save that I will need access to in 6 months time. Where is the best place to save. I was looking at the below and then read on another thread about the tax issue bringing the rate down. Also although it says below about needing to have there top savings account as well when I proceed there is no mention on their site that I need to do this and do not understand why I have to ??????

paulboy83

I'm not sure I understand what you are asking.

There are 6 month bonds in which you can place money, or you can just put it in the highest interest savings account which offers instant access. There are guides on this site which will offer you more information about the best rates available at the moment.

Hope that helps a little.

jem16

getreal wrote: »

I have already asked this question but didnt get much response and now am even more confused. I have approx £4.5k to save that I will need access to in 6 months time. Where is the best place to save. I was looking at the below and then read on another thread about the tax issue bringing the rate down. Also although it says below about needing to have there top savings account as well when I proceed there is no mention on their site that I need to do this and do not understand why I have to ??????

You're not the only one who is completely confused.

Perhaps you could try to make it a little bit clearer?

As far as tax is concerned, the rate you see advertised on savings is the gross rate. If you are a taxpayer you have to think about the net rate as you pay tax on the interest you get.

So if the gross rate is 6.5%, a basic rate taxpayer will actually get 5.2% and a higher rate taxpayer will get 3.9% after tax. The exception of course to this is an ISA where you would get the full 6.5%.

nicko33

from www.moneyfacts.co.uk/savings

6 month fixed-rate fixed-term
6.97% Kaupthing Edge
6.86% IceSave
6.50% Nationwide Buiding Society

notice accounts
6.60% (60 days) Heritable Bank
6.56% (30 days) West Bromwich Buiding Society

internet accounts
6.51% Bradford & Bingley
6.40% Intelligent Finance

take your pick

jingle68

6 month fixed-rate fixed-term
6.97% Kaupthing Edge

I have just had the same issue and opted for the above, its easy to open,there is an instant access no penalties savings with high interest account which Kaupthing Edge open first then give you the option to switch to the fixed rate term as soon as your cash is cleared into the savings account.

Jingle 68

getreal_3

so there is no point picking the fixed then as by the time I take into consideration the tax then the at is not that great.. I apologize if I sound dumb, savings accounts/tax not my strong points!

also it appears that you can pick the fixed rate without opening another savings account first?
thanks for the help

getreal_3

i do not work so wouldnt pay the higher tax? I guess im asking where is 4.5k going to earn me the most in 6 months

jem16

getreal wrote: »

i do not work so wouldnt pay the higher tax?

If you are not a taxpayer you will not pay any tax on the interest - just register for gross interest.

I guess im asking where is 4.5k going to earn me the most in 6 months

Kaupthing Edge 6 month fixed rate.

nicko33

see http://www.moneysavingexpert.com/banking/interest-rates#tax