Savings Advice

buzzandcindy

Please would someone give me a bit of advice. Myself and my boyfriend are both self employed plumbers, last year we overpaid the mortgage by £3000.

Due to the current down turn in our workload, we have taken the £3000 back from the mortgage company, as a safety net just in case work doesn't pick up in the next year.

I can't get my head around all the different things to do with it, but we need to put it somewhere that we can access it should times get harder, but don't know what to do!

We don't have any creditcard/loans or debts other than the mortgage.

Thanks in anticipation

Cindy

Sorry, think I have put this in the wrong place, and not sure how to move it:o .

Reaper

How about an instant access cash ISA?

See Martin's article if you are not familiar with them.

KingL

If you are not in the habit of regularly taking out ISAs, then stick it in an easy access cash ISA. You will be able to get about 6% interest on it and you won't have to pay income tax on the interest.

There is a slight downside in that if you have to withdraw the funds then you won't be able to put them back in again later (you would have to wait until 6 April 2009 before you can open another ISA), but it doesn't sound like that would be a problem in your circumstances.

If you can find a fixed rate (N.B. not fixed-term) easy access cash ISA then so much the better. But I think they have all gone now.

Use this to find some possible cash ISAs. Choose the 'savings' option on the front page, then input your other criteria. Make sure you answer Q3 as "tax free" to see the ISAs.
http://www.fsa.gov.uk/tables/

Make sure you read the terms and conditions of any account you are planning to open!




If you already have plans for your ISA allowance, then you still have a few pretty good (variable rate) instant-access savings accounts available (6+%). You will have to pay tax on the interest from these and the interest rates can (and probably will) drop over time, but you can add and remove funds at will.


Also, have a read of this http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

buzzandcindy

Thanks will have a look for the easy access cash isa. Never had an isa so allowance is ok.