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Advice please

Hi all, am new to this site but would like some advice. I've been given some money by my parents (I've recently moved out but OH's parents have also helped us out with some big purchases) so we don't need to buy anything with the cash immediately. I want to save this cash and be able to add to it every month, which kind of account would be best to put this in to get the best interest rate? Thanks in advance x
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Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Are you a taxpayer?
    Have you filled up your ISA allowance?
    How long can you tie up the money?
    How much have you got saved at the moment?
  • yes I am a taxpayer, I don't really want an ISA, I don't have to use the money for about a year or so but would like access for emergencies, I have 2k so far
  • zzzLazyDaisy
    zzzLazyDaisy Posts: 12,497 Forumite
    Part of the Furniture Combo Breaker
    Thats crazy, you will have to pay tax on the interest, and with today's poor interest rates that is a real issue - you can have an instant access ISA, so you don't tie the money up if you don't want to, but you will receive interest tax free. You can put up to £3600 in an ISA this tax year
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
  • ISA's put me off as I do know of someone who lost their money, a long time ago granted that is something that concerns me
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    ISA's put me off as I do know of someone who lost their money, a long time ago granted that is something that concerns me

    Thats a Stocks and Shares ISA not a Cash ISA.

    A cash ISA it just a wrapper to make sure you get tax free interest.
  • Ah now I see the difference. So are there penalties for taking money out? Which one pays the highest interest?
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Depends on the ISA. Fixed rate term ISAs yes.
  • cos69
    cos69 Posts: 413 Forumite
    Ah now I see the difference. So are there penalties for taking money out? Which one pays the highest interest?

    Check out the tables here to see if anything looks of interest
    http://www.moneysavingexpert.com/savings/best-cash-isa#best
    "How could I have been so mistaken as to trust the experts" - John F Kennedy 1962
  • Thanks for all the help, much appreciated
  • dosh37
    dosh37 Posts: 539 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    My advice is spend it while prices are down.
    Saving in the current climate with interest rates as they are is pointless.
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