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Help bamboozled!

poorbird73
Posts: 44 Forumite

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!
Sara x
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!

Sara x
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Comments
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You could give it to me, if you wanted?
Guess u wont0 -
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 1.0 -
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!
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.0 -
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 ym0 -
You need to read the first post again. They said their credit rating is good and they can't pay off the mortgage early.0
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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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