What is the best Saving Account for Me?

Dan_Stevenson

Hello.

I am currently looking at moving my money from my Abbey National E-Saver account. I have around £17,000 and am not paying tax on this as I am currently a student. I would like to move my money to another account to try and make the most of my extra cash.

I have looked into having a fixed ISA but I do like the option of not being able to take my money out if needed.

What is the best option for me as if I move my money to another instant access I will get taxed and if I move to an ISA I wont have full access to my money for a certain period. I could put around £10k in an ISA and put the rest in an instant access. Please help and let me know what offers are the best for me.

Thanks, Dan

Lokolo

-You can only put £3600 in an cash ISA each tax year.
- Just because you a student, doesn't mean you get tax exemption. If you earn over your personal allownace, you do pay tax.

You won't get a fixed ISA without having a penalty on taking it out.

Go onto moneysupermarket, there you can find savings accounts best suited to you.

CLAPTON

Dan_Stevenson wrote: »

Hello.

I am currently looking at moving my money from my Abbey National E-Saver account. I have around £17,000 and am not paying tax on this as I am currently a student. I would like to move my money to another account to try and make the most of my extra cash.

I have looked into having a fixed ISA but I do like the option of not being able to take my money out if needed.

What is the best option for me as if I move my money to another instant access I will get taxed and if I move to an ISA I wont have full access to my money for a certain period. I could put around £10k in an ISA and put the rest in an instant access. Please help and let me know what offers are the best for me.

Thanks, Dan

what sort of account is abbey e-saver? is it an ISA or just a online savings a/c?

isofa

Have a look at the best ISAs and best instant access accounts on Moneyfacts.

If you already have an ISA, you'll need to transfer it (if you want to - or leave it where it is.), If you haven't used this years cash ISA allowance, put £3600 away now in a good top rated one.

For the rest, you'd be better off sticking to high rate instant access, as you aren't keen on tying money up for a fixed period, there are plenty of good paying internet accounts.

All fixed rate accounts have a term or notice period, usually 1 year, but some are 6 months, and you can also get 2, 3, 4 and 5 year fixed rate accounts ("bonds").

Personally I'd not touch Shabby Abbey with a bargepole.

Dan_Stevenson

It is just an instant access online saver account, not an ISA.

isofa

Dan_Stevenson wrote: »

It is just an instant access online saver account, not an ISA.

Therefore as above. If you don't have another ISA, or have used your cash ISA allowance this year, put £3600 into a cash ISA, and the rest... as my post above.

tiptoe_mouse

Dan_Stevenson wrote: »

What is the best option for me as if I move my money to another instant access I will get taxed and if I move to an ISA I wont have full access to my money for a certain period.

If your income is under the personal allowance, you won't have to pay tax on your interest wherever you put your savings. You would need to fill in form R85 to get the interest paid gross.

An ISA doesn't necessarily tie up your money for a fixed period. There are plenty of instant access ones out there - try icesave at 6.1%, for example.

You may wonder if there is any point in having an ISA if you're a non-taxpayer. The advantage of putting money in now, and next year, and so on, is that way you can eventually shelter a larger amount from tax.

If I were you I'd open an instant access ISA. Have a read of this MSE article http://www.moneysavingexpert.com/savings/best-cash-isa or look at this post for the best deals http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1, and then read the ISAs board to check out people's experiences. A lot of people have had problems opening Barclays 6.25% ISA, for example. Also be aware that to get the best rate you will need to be prepared to transfer your ISA each year.

As you'll only be able to stash £3600 into each year, you will need a good instant access savings account as well - have a read of this MSE article http://www.moneysavingexpert.com/savings/savings-accounts-best-interest.

Then move another £3600 from the savings account to the ISA each tax year.

If you fancy making things a little more complicated, you could look at adding regular savers into the mix - see this thread http://forums.moneysavingexpert.com/showthread.html?t=608697 and this MSE article http://www.moneysavingexpert.com/savings/best-regular-savings-accounts.

Have fun!

tiptoe