Best savings account for a student?

Lavace

Hi all!

I've tried reading a lot on the website, but I'm still completely unsure about which type of savings account would suit me best.

I've always lived in England and attend a university here (this is my first year, that is coming to an end). I currently have three well-paying jobs that are spread out over term-time and vacation periods. I'm expecting to earn about £3000 this summer and thereafter in term-time around £150-200 per week.

I'd ideally like to save a huge amount, so when I graduate I have a decent financial situation to allow me to do what I want to do (as I use my student loan to pay fees and live, so I can put all my job earnings into a savings fund).

Could anyone reccomend me a savings account and explain why it is best suited for me?

kidmugsy

Cash ISA - the interest comes tax-free, year after year. When next available - allegedly this tax year - check the Terms and Conditions for Index-Linked Savings Certificates from ns&i. No tax to pay and they beat inflation, however high or low it is.

Lavace

kidmugsy wrote: »

Cash ISA - the interest comes tax-free, year after year. When next available - allegedly this tax year - check the Terms and Conditions for Index-Linked Savings Certificates from ns&i. No tax to pay and they beat inflation, however high or low it is.

So ISA's work in the sense that the interest earned is interest free.

We deposit up to the limit of £5000-something and earn interest free tax to the end of each tax year.

What do we do after the tax year? Move all the money to another account or do are we allowed another £5000-something on top?

Also, do we deposit enough to be below the limit, whereby we then don't go over the limit as interest is paid?

xrjtg

The limits on ISAs are always on the amount you pay in in any given year. You can add more next year, and interest paid doesn't count towards the limit.

kidmugsy

"What do we do after the tax year?" You check the interest being paid on your account (as you would occasionally on any accont).

"Move all the money to another account": yes, if you are not happy with the interest rate, move to another ISA. You must be careful NOT to withdraw the money yourself - you get your old provider to transfer the money to the new one. That way the money stays within the tax shelter.

"or do are we allowed another £5000-something on top?" Yes, but you needn't put it into the same account if you don't want to. You might, for instance, prefer to have one account on instant access and one on notice.

"Also, do we deposit enough to be below the limit": the provider should check that you are not depositing too much, though obviously it's more convenient if you also check.

"whereby we then don't go over the limit as interest is paid": the interest doesn't matter in terms of the limit. That's because the limit involves how much you contribute in the tax year, and interest isn't a contribution, it's earnings within the ISA.

TRUSt_NO_1_2

Lavace wrote: »

Hi all!

I've tried reading a lot on the website, but I'm still completely unsure about which type of savings account would suit me best.

I've always lived in England and attend a university here (this is my first year, that is coming to an end). I currently have three well-paying jobs that are spread out over term-time and vacation periods. I'm expecting to earn about £3000 this summer and thereafter in term-time around £150-200 per week.

I'd ideally like to save a huge amount, so when I graduate I have a decent financial situation to allow me to do what I want to do (as I use my student loan to pay fees and live, so I can put all my job earnings into a savings fund).

Could anyone reccomend me a savings account and explain why it is best suited for me?

So you're at Uni for the sex I guess.

I'd invest the money to make one of your 3 jobs easier/more profitable.