40k to invest for 1 year offset mort or high interest savings???

lesandflynny

Hi I currantly have 40k in my egg offset mortgage which is 5.65% but not fixed.

I don't need to touch it for a year would I make more in a high interest account, online or highstreet. If its not much I am not bothered messing about though. I know they tax any interest made on savings but don't know the mathematical formula to work this out myself.

Any maths wizzards around??

Thanks
Diane

silvercar

you'll be hard pushed to get an interest rate of 5.65% after tax. the best savings accounts pay about that rate gross (before tax). Stick it in the offset.

Martinslovechild

You could sign up for the Alliance & Leicester Premier Regular Saver account, which pays 12% gross fixed for a year. There's a maximum one-year term and interest is paid at the end of the 12 months.

Drawbacks? You have to open an Alliance & Leicester Premier Current Account to qualify, you must pay at least £500 into the Current Account and there's a maximum of £250 per month that can be paid into the Premier Savings Account.

Given all these rules & restrictions, I would leave the money where it is to be honest.

nrsql

Best where it is at the moment.
Could maybe do better by remortgaging to a discount or fixed rate and keeping the money in a savings account - would probably also be profitabe to change to a flexible mortgage if you want that facility.

Your offset mortgage is probably very expensive but without changing that it is probably best to keep the money there.

lesandflynny

Cheers Guys

I have no time for re-mortagage etc so will leave where it is for now. Plus it is easy to get at if I need emergency funds