Student savings

dturner90

Trying to sort out my savings finally and not sure which would be the most profitable option.

I earn under £7500 per year and I am a full time student.
I have £25000 to put into savings and want to get the maximum interest although I might need access to it after 2 years. Is there any point in using ISAs at 2.8% or should I just stick to fixed rate savings accounts at 3.6%? Am I missing anything here?

Thanks in advance for any advice

atypical

Put £5,340 into an ISA now to protect it from tax if/when you become liable for it in the future. From April you can ISA another £5,640. You should do this for the following years too.

Whatever remains you could fix for 2 years at 4.2% or leave it in an instant access account at 3.1% - or use a combination of both.

Derivative

You can get a 3%+ easy access ISA, check the link above.

Personally I would max out the ISA allowance simply because you can't be sure that you will not be subject to 40% tax in the near future - I mean, that's why we go to University, right? :cool: