savings advice needed

[Deleted User]

Hi

I have £9k of savings currently in premium bonds
I have had a dismal return in the last year (£100) and want to move it to a savings account.
I am just wondering what the tax situation would be in a savings account for me.
I am a student not working and not paying tax.
If I opened eg an icesave account would I get the full c5% interest?

thanks in advance

Michael

RubyBish

If you open a savings account like IceSave income tax at 20% will be deducted automatically from interest payments. By submitting the form R85 which you can obtain from them on opening you can request for interest to be paid gross (i.e. the full 5.2%).

Although you would not be taking advantage of the tax benefits now you might still consider a cash ISA as you can benefit from the tax free status in years to come when your income increases.

Robert_Sterling

Some people think there is nothing to lose when you buy Premium Bonds.
You could have got about £360 or nore after tax from investing your £9000 elsewhere. You actually got £100 from Premium Bonds. You might say you lost at least £260.

[Deleted User]

Robert_Sterling wrote:

Some people think there is nothing to lose when you buy Premium Bonds.
You could have got about £360 or nore after tax from investing your £9000 elsewhere. You actually got £100 from Premium Bonds. You might say you lost at least £260.

lol thanks bob you are a ray of sunshine lol