Cash ISA or regular savings account?

asphodella

I am a student on a placement year - I'm looking to save around £250 a month for the last 6 months of my placement (starting this month) then reduce this when I go back to uni.

The variety of savings accounts on offer is very overwhelming! How will I be able to save the most? Should I start with a regular savings account or a cash ISA?

I am being taxed at the standard rate whilst on placement - which covers two tax years.

Thanks for your help

Sanzai

Well I would have a look around at available accounts and check some of the sticky thread in this forum for best accounts at the moment. Since you are being taxed at 20% I would imagine that a cash ISA is going to give you a better rate of interest than you will find with regular accounts.