Tax Savings - What should I do with it???

GraphicMan

Hi. I've had a look through the forums and can't see anything similar to this problem.

I am a shareholder of a company and receive my wages in two payments, the first one being my taxable allowance which amounts to a take-home amount of £432.00 and the second is a dividend payment.

The dividend payment is taxable and I an currently putting the £432.00 away each month into a savings account to cover my tax bill when it appears.

Before the interest rates went haywire I was moving the money into a Kaupthing Edge account who have now been taken over by ING.

ING have informed me of a bonus rate of 3.51% gross pa variable 2.53% AER rate which includes a 2.02% gross pa fixed bonus rate for 6 months. After that it reverts to their standard rate which is currently 1.5% AER variable 1.49% gross pa.

I want to maximise the return on these savings while they sit in the bank but I will need access to them when my tax bill comes in. Are there some better options for this lump of money and regular deposits other than a savings account, maybe an ISA?

Currently the balance stands at £3400 ish topped up by the monthly £432.00 payments.

Thanks in advance