savings account for a tax bill

simonvw

Hi can anyone recommend a suitable account into which I can put away a bit each month (£150-£200) for a £700 tax bill due by the end of the year? I'm a freelance journalist who's just coming to the end of my first's year's trading and my accountant has told me how much I'll need to pay! I'm not looking for a jaw-dropping interest rate (there aren't any anyway!) but just a competitive one which I can open and manage online
thanks for any tips

jimbow25

Really you want an easy access account, possibly an ISA if you don't already use your allowance, and don't expect to.

BUT:

If you want something fairly hassle-free and aren't overly worried about the rate why don't you just see what your current bank offer in the way of an online easy-access savings account, and open that? If you already bank online you can probably have it open in a day or two and you can keep track of the balance with alongside yout business banking.

You might earn a bit less interest but the hassle of opening an account with a new bank, going through ID checks, and managing a whole separate banking log in, for the sake of 6 months interest, are unlikely to be worth it in my opinion.

3% interest for 6 months on £400 (probably your average balance over the period), net of 20% tax, is about £5. If your current bank only offers half that you've lost £2.50 but saved a lot of valuable time!!