Fixed rate savings for tax payment

pmorrison_2

Just done my online tax return and worked out how much tax I need to pay this January, I want to put the money into a decent fixed rate account so that firstly I 'separate' it from my own money so I wont miss it so much when its gone, and secondly, get the maximum amount of interest from it as possible.

The first payment due is 31st January (approx 3 months) and the second is 31st July (approx 9 months). I am thinking of putting them in a 3 month 7% and 9 month 6.5% Fixed rate savings account with Halifax. However, I was wondering if there were any other similar accounts that may work out better?

Cheers,

pmorrison

masonic

Those accounts do look like an ideal option for you, but if you open the accounts now, do you think they'll mature early enough for you to make your payments on time?

pmorrison_2

I think that they will mature after the due date - I think you have to open a web saver first and then transfer it over to the fixed rate from there - I have a Halifax account already so I would hope it would be opened instantly, obviously it will take 3 days to transfer over the money which will take me over the end of this month. However, I will have the money in other acounts to pay the bill by the due date so I can just replace that money once the fixed rate matures.

Mikeyorks

Either a Web saver or one of their Current accounts. Opening the fixed rate generally takes just a couple of minutes if you're operating from their online Portfolio.
Tend to agree they're the ideal accounts to drop money for Jan / July. Trust you've included the 50% POA for the following year in the 31st Jan calculation!

pmorrison_2

Yes the payment on account is included, the online calculations give you both amounts that are payable.