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Really Am Confused Now About Best Savings
rockrat
Posts: 135 Forumite
hi all,
first post here so forgive me if i have not found the answer which is buried in the millions of posts here.
i recently had a decent enough payrise to start actually considering saving properly.
As a typical tight yorkshireman my outgoings are reasonably pared to the bone anyway, but this has been a necessity. We have no loans etc, and a small debt on credit card being paid off on an interest free deal currently so not worth mentioning. My wife works part time and just comes in at the tax free limit of £4,700 p.a.
But, now we have the chance to save about £500 a month.
I have an A & L savings account and have done my first payment into there, but as a 40% tax payer i am wondering if i am getting the best allround.
My question here is how best to maximise that money, but without having to tie in for long term periods.
we have two children (3 & 5) and so could possibly look into paying into childrens savings account, ISA's confuse me but that could be an option.
Should i split the money and put some into savings, childrens and an ISA, or all in one.
If i put into childrens will they not get taxed at my 40% after they have accrued more that £100 interest?
your advise is greatly appreciated.
baffled from yorkshire
Over the course of the year i would be looking to save £6000, (12x£500).
first post here so forgive me if i have not found the answer which is buried in the millions of posts here.
i recently had a decent enough payrise to start actually considering saving properly.
As a typical tight yorkshireman my outgoings are reasonably pared to the bone anyway, but this has been a necessity. We have no loans etc, and a small debt on credit card being paid off on an interest free deal currently so not worth mentioning. My wife works part time and just comes in at the tax free limit of £4,700 p.a.
But, now we have the chance to save about £500 a month.
I have an A & L savings account and have done my first payment into there, but as a 40% tax payer i am wondering if i am getting the best allround.
My question here is how best to maximise that money, but without having to tie in for long term periods.
we have two children (3 & 5) and so could possibly look into paying into childrens savings account, ISA's confuse me but that could be an option.
Should i split the money and put some into savings, childrens and an ISA, or all in one.
If i put into childrens will they not get taxed at my 40% after they have accrued more that £100 interest?
your advise is greatly appreciated.
baffled from yorkshire
Over the course of the year i would be looking to save £6000, (12x£500).
0
Comments
-
Hi, rockrat,
A cash mini-ISA each for you and your wife would cover the £6000. It's not complicated; a cash ISA is just a bank account which pays interest tax free on up to £3000 ( your annual cash mini-ISA allowance ). Have a look at the article here -
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1045408312,40680,
HTH
Cheerfulcat0
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