Where should I save my Money?

UNISTUDENT

I have about £5000 to put into a savings account and can make payments of about £200 a month. I'm a student so don't think I get taxed (maybe wrong). Although I may need to make a few withdraws a year.

What is the best rate I can get at the moment? Or where would you recommend putting my money? ISA etc?

Is it worth waiting a bit for a higher interest deal to become available?

Thanks for your help

Lokolo

You get taxed if you earn more than your personal allowance (£6475 for most people this year).

If you can definately put X amount in per month you might want to think about a regular saver:

http://www.halifax.co.uk/savings/regularsaver.asp

Theres one.

For the rest of the £5,000 you may as well find an account, whichever is the highest, and put it in there. If you need access to it you may want to just put it in an instant access account, but these usually come with poorer rates.

Baldur

UNISTUDENT wrote: »

I have about £5000 to put into a savings account and can make payments of about £200 a month. I'm a student so don't think I get taxed (maybe wrong). Although I may need to make a few withdraws a year.

What is the best rate I can get at the moment? Or where would you recommend putting my money? ISA etc?

If you need easy access, the Citibank Flexible Saver 6 pays 3.3% AER (including a first year bonus of 2.25%).

Is it worth waiting a bit for a higher interest deal to become available?

If your cash is in an easy access account, you can just withdraw it if a better offer comes along - why wait?

UNISTUDENT

Thanks for your help

Baldur wrote: »

If you need easy access, the Citibank Flexible Saver 6 pays 3.3% AER (including a first year bonus of 2.25%).

If your cash is in an easy access account, you can just withdraw it if a better offer comes along - why wait?

Think I will just put it into this account if it has the highest interest at the moment as I may need to withdraw money from it throughout the year. I guess it is better than just sitting in a normal current account.

Baldur

The only account better, that I am aware of, with easy access is a Lloyds TSB Classic account with Vantage, which pays 4% on balances between 5k & 7k but you have to pay in £1000 per month to meet the Ts & Cs.

UNISTUDENT

Baldur wrote: »

The only account better, that I am aware of, with easy access is a Lloyds TSB Classic account with Vantage, which pays 4% on balances between 5k & 7k but you have to pay in £1000 per month to meet the Ts & Cs.

Ok cool, Yer don't think I could save that much a month