Advice please on chooseing the right savings account

Katharine

Hello there people I've been reading this site and forum with interest and it's great stuff! I am still confused however about chooseing the right savings account.

Bascially my partner has recently become self employed but with a regular monthly wage. So hope I was right in adviseing him to get a saving account with a direct debit of a fixed amount every month that is more than enough to pay his yearly income tax when it comes round, gaining the maximum amount of interest in the mean time.

I would really appreciate some advise on this it's its confusing the hell out of me. Many thanks in advance.

Kat.

grumbler

Katharine wrote:

... a saving account with a direct debit...

Saving account usually does not have Direct Debit facility. As far as I know only current accounts allow for DD. Generally it is difficult to combine DD and high interest in one account. A&L Premier Plus current account now pays quite high 5% interest, but only for 12 months and they demand £1000 credit every month. You can open more basic account with them for DDs and use their instant access Online Saver with 5.35% to keep the extra money. Money can be moved instantly between these two accounts.
The similar option - Nationwide flex account (current) with their e-saving account (5%).
The best choice for long-term tax-efficient savings is cash ISA.