Tax-free savings

weatherwax_2

As of now we have about £8000 to open a savings account. As I am on IB I won't have to pay any tax until November when I start to receive my OAP, and even then my tax won't be very high.

Any suggestions for an account paying good interest with no hidden strings, gobbledygook-free, easy access (though we don't intend to touch the money except in extremis)and, dare I say it, a reputation for good customer service? ::) We intend to add to it by about £30 a month.

To sum up, a straightforward, no hassle savings account, bearing in mind all of the above.

Any advice appreciated.

blinko

first get yourself a cash isa if you dont have one

abbey have a good one at 5.35% this is a tax free product so you wont pay any interest on it.

also look at egg savings at 5.5% for the first 6 months https://www.moneysupermarket.co.uk and click savings and you can see a comparison table

Walletwatch

abbey have a good one at 5.35% this is a tax free product so you wont pay any interest on it.

Good customer service?? I don't think so.

Plus this is a postal ISA, so you cannot even go to a branch and holler for help...

dunstonh

Plus this is a postal ISA, so you cannot even go to a branch and holler for help...

If that is important to you then go with a branch based product but expect to pay for that extra service by getting a lower rate.

weatherwax_2

Good customer service?? I don't think so.

Plus this is a postal ISA, so you cannot even go to a branch and holler for help...

I have'nt been impressed by the word on AN customer service, and this is important to us. We don't really want to go the ISA route as they only permit a £3000 limit. We simply want somewhere to put £8,000 initially and add to it, along with the other factors mentioned  in my OP.

We're not au fait enough with finance to spread it around which is why we want to consolidate the money in one place. Nice and simple.  :)

Any views on Ing or Cahoot?

deemy2004

We implies 2 people so you have £3k each for cash-isa's now and £3k each from 6th of April 05 so the £8k is more than covered.

The name of the game is to maximise your interest earned, Yeh Abbey can be a pain if you don't fit their tight criteria of documents required. But worth it for the extra rate of return.

Cash-ISAs are the best savings accounts as the interest does not count as taxable in addition to any other earnings.

johnllew

£3k each from 1st of April 05 so the £8k is more than covered.

Small point: the new tax year starts on the 6th April, not the 1st.

isasmurf

Any views on Ing or Cahoot?

Cahoot is Abbey in disguise, and you've already said you're not impressed by them.

If you are prepared to consider an internet account, maybe Alliance & Leicester online saver may be worth considering.

weatherwax_2

Thanks to all for your replies. I'm mulling them over. Aaaagghhh, I hate financial stuff. I just want to live in the style to which I'd like to be accustomed. ;D

MarkyMarkD

If you don't get ISAs, you want an account which either credits interest on 31 March or 5 April, or one which credits it monthly, as you won't be paying tax this tax year, but you will do next tax year.

Only a small issue, but worth considering.

Alternatively (just as effective) open the best account you can get now.  Close it on 5 April (but don't miss the deadline!) and then your interest will be credited this tax year.  Open a new account on 6 April with another or even the same institution!

By the way, if pension is your only income from November onwards, then you might not reach the income tax threshhold in the 2005/06 tax year anyway. You will only get 6 months' pension in that tax year. So consider whether the tax thing actually matters for a while. Is your IB taxable? It is only taxable if you first received it after 13th April 1995.