Student Saving Advice

Philosaffical

I wanted to get a student account with the highest overdraft and transfer the overdraft into a high interest account.
The student account I was planning to go with was the Co-op since its the highest overdraft, But I'm uncertain as to where I should put my money to save it?
Do I go for an account with the highest interest? Or do I go for an Isa which apparently has lower interest but no tax? Which one would work out more in my favor:money:?

MrsManda

Are you likely to earn over your personal allowance during the financial year from paid work/bank interest? - £7475 for 2011/12.

If not, you'd be better going for the higher interest account as you won't pay tax anyway.

If you are likely to earn over £7475 it may be better opening an ISA so you don't pay tax on your savings.

Either way, make sure you have an instant access/easy access account as an overdraft can be repayable at any time.

Cardozo

Philosaffical wrote: »

I wanted to get a student account with the highest overdraft and transfer the overdraft into a high interest account.
The student account I was planning to go with was the Co-op since its the highest overdraft, But I'm uncertain as to where I should put my money to save it?
Do I go for an account with the highest interest? Or do I go for an Isa which apparently has lower interest but no tax? Which one would work out more in my favor:money:?

ISA if earnings over tax allowance or High Interest Savings Account if not.

Voyager2002

At the moment, interest rates to savers are so low that this strategy might not be worth the trouble involved. Remember that time is incredibly precious to a student, and the time involved in finding the right "high-interest" savings account and moving money around might be worth more than the pitiful amount of interest you will end up receiving.