student saving from a part time job

reehsetin

im at university just finished my first year, while at uni im working part time and after costs and fun money left over with about £300 a month plus my student loan brings in more. thinking about the best way to save it
ive got an ISA already with nationwaide which £200 a month goes into plus an odd lump of cash but still finding im left with over a grand usually in my current account - know i can only put in £3000 into the isa so what else can i do with the extra money, want to sort something out by the time i start uni again

dont want it locked away so i cant reach it in an emergency as my mums ill and i dont know if theres going to be a point where ill need it

any smart ideas whats going to be the best to do with it?

(dont know if thats all the info there that people need to give me some advice so let me know)

kingmonkey

This depends on how much you earn in a year. If you dont have to pay tax then a instant access high interest savings account would probably be best. Just remember to fill in the no tax please form. Also if you have a free overdraft then you can use the money from that to earn interest on it.

reehsetin

Earn about £8000 a year roughly will depend on comission tho so could be upto another grand over that
i do pay a fair bit on tax not sure the exact level and that tho tax confuses the hell out of me
what would be the difference between the high interest account and the isa? are there any restrictions on those

Just remember to fill in the no tax please form

sounds great where can i pick up one of them from? would i be able to claim back previous tax?

jem16

As you earn at least £8000 per year you can't fill in a "no tax please" form as you are a taxpayer. You would not be able to claim back tax either.

Savings accounts are usually taxed 20% at source so when you get your interest paid it has already been taxed. Basically what you need to look for is a savings account with the highest AER - these are usually internet operated accounts and would be around 4.55%-5.15% AER.

You can check here for the best rates.
http://www.moneysupermarket.com/savings/

cookie9

Make sure you are on the correct tax code and not emergency tax code. Look at your pay slip- if the tax code says "X" then it is emergency code and you should write to your tax office. Once they put you on the correct code you should pay less in tax and will eventually get a refund for any over paid tax.

Robert_Sterling

Use a Halifax current account with a Websaver Account.
Transfer from one to the other in real time 24/7.
Keep what you need in current account and transfer what you do not need to the Websaver.
Websaver pays 4.50% at present.

kingmonkey

cookie9 wrote:

Make sure you are on the correct tax code and not emergency tax code. Look at your pay slip- if the tax code says "X" then it is emergency code and you should write to your tax office. Once they put you on the correct code you should pay less in tax and will eventually get a refund for any over paid tax.

Also make sure your not on BR. If you have multiple jobs then its ok for them to be on BR as long as your main job is not on BR.

reehsetin

i was on BR few months ago my last job hadnt given me my p45 for ages will they automatically refund me the extra tax? (i have a feeling no but hey may as well ask!)

even thought im not on one of those tax codes still think the tax is a lot, £120 last month

reehsetin

jem16 wrote:

Savings accounts are usually taxed 20% at source so when you get your interest paid it has already been taxed. Basically what you need to look for is a savings account with the highest AER - these are usually internet operated accounts and would be around 4.55%-5.15% AER.

You can check here for the best rates.
http://www.moneysupermarket.com/savings/

ok so best to look out for one with a rate roughly around those percentages is that the only thing i need to look out for though? main thing would prob be the movements theyd allow in and out of the account but like are they all taxed at the same rate?

jem16

reehsetin wrote:

ok so best to look out for one with a rate roughly around those percentages is that the only thing i need to look out for though? main thing would prob be the movements theyd allow in and out of the account but like are they all taxed at the same rate?

What you probably want is a no-notice account. That will allow you access whenever you want with no limits on withdrawals. Some internet accounts need to be linked to a current account and some accounts can only be got if you have a current account with them.

Who is your current account with?

reehsetin

ive got a hsbc student account which is where my pay and loan and everything goes, got a barclays account too but really dont want to get into dealing with them again hate barclays it just sits there with a lil bit of money in it