Savings

percy

Can someone help me through the maze of different savings accounts? I would like to save about £300 per month over the next year. I would like to be able to draw on the savings if needed. I am ashamed to admit I don't understand the ISA thing, is this the best option or do you have to invest a lump sum? I am retrired and my husband is semi-retired so don't know if this makes a difference.We are obviosly looking for the best return but I am totally confused as to which way to go! Any help appreciated

Lokolo_2

percy wrote: »

Can someone help me through the maze of different savings accounts? I would like to save about £300 per month over the next year. I would like to be able to draw on the savings if needed. I am ashamed to admit I don't understand the ISA thing, is this the best option or do you have to invest a lump sum? I am retrired and my husband is semi-retired so don't know if this makes a difference.We are obviosly looking for the best return but I am totally confused as to which way to go! Any help appreciated

Well, an ISA is just a savings account with tax-free interest, there are some Regular saver ISA's around, but you'd need to compare them to standard regular savers to see which offers the better rate.

Since you are retired and probably getting a pension then you are likely still a taxpayer so an ISA could help, you are correct that ISA's are most beneficial if you can deposit the full lump sum of your yearly allowance, however you can still open an instant access ISA and make deposits into it every month - Barclays offers one (3.25%) and Santander (3.3%)

I think the answer to your question depends on your tax status, are you paying income tax at the moment? If not then just a regular savings account might offer the best rate!