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Help bamboozled!

HI

I am so confused! My lump sum pension has come through (£40,000) and I am not sure where to save it. I owe lots on my mortgage but I am trapped with them for another 16 months (£5,000 early leaving fee!!)so ideally want to save it in the highest rate savings account but I am so confused which is the safest, will I pay tax in the savings account ect. I can do fixed rate for 12 months but no longer.
Also if I apply to open an account will they check my credit rating (Its good at the moment but I have heard that even checking it can decrease your score)
PLease help I am totally confused!:confused:

Sara x

Comments

  • You could give it to me, if you wanted?
    Guess u wont :(
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    You should start with the savings article on this site:
    http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
    It explains savings in great detail.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Reaper
    Reaper Posts: 7,356 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    poorbird73 wrote: »
    Also if I apply to open an account will they check my credit rating (Its good at the moment but I have heard that even checking it can decrease your score)
    PLease help I am totally confused!
    Don't worry about your credit score. If you are opening a savings account that has no overdraft facility they are not bothered about your credit score because you can't go into overdraft. They won't log anything in it. Even if you apply for one that allows an overdraft it will have only a small effect, and can even be beneficial if it subsequently shows you operated the account responsibly.

    What they are looking for is people applying for dozens of credit cards in a short space of time so they can run up massive debt, not savers.
  • You have got £40,000
    If your credit rating is poor have you got any debts which you could now pay off?
    If you give details of your mortgage, Outstanding balance, years remaining, monthly payment, it will be possible to work out what you would save if you paid some off.
    ...............................I have put my clock back....... Kcolc ym
  • Reaper
    Reaper Posts: 7,356 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    You need to read the first post again. They said their credit rating is good and they can't pay off the mortgage early.
  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sara,

    Sounds like a fixed rate bond for 12 months is your answer - some of these often run for about 14 months anyway so you can earn a decent yield.

    If you are still paying tax, it might be worth putting £6,400 into ISAs though (1/2 before 6 April and 1/2 afterwards).

    Don't worry about credit searches! An identity check is not going to mess your credit rating up, and since you are retiring, you presumably won't be taking out another mortgage or other loan or credit cards again anyway?

    Good luck

    R.
    Smile :), it makes people wonder what you have been up to.
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