Saving £12000 in one year

Dr_Kit

Hi all,

I wondered if anyone could give me some advice. My partner and I are planning to save up £12000 in one year starting from August. We will withdraw most or all of the money at this time and use it to fund taking a career break and traveling for a year. We will be saving regular amounts from our current accounts each month after we are paid. I will be paying about £600 and my partner will be paying about £400, more than the maximum for most of the high interest savings accounts.

I wondered what people thought would be the best veichle for this. Do people think ISAs or regular savers? Is it worth putting the money in an ISA if it is going to be there for just a year? Is it worth opening up several high interest regular savers accounts and getting their good rate for a year?

I would appreciate your thoughts;

MoneySaverLog

I'd use the regular savers if I was in your shoes. :-)

xylophone

You could each fill your ISAs first then each open an account with the best rate you can find?
http://moneyfacts.co.uk/compare/savings/accounts/search/

Dr_Kit

Is there any point saving it in an ISA when I am going to be withdrawing it all in 12 months time do you think?

xylophone

Is there any point saving it in an ISA when I am going to be withdrawing it all in 12 months time do you think?

Do you want to pay tax unnecessarily?

Cyrus

Dr_Kit wrote: »

Hi all,

I wondered if anyone could give me some advice. My partner and I are planning to save up £12000 in one year starting from August. We will withdraw most or all of the money at this time and use it to fund taking a career break and traveling for a year. We will be saving regular amounts from our current accounts each month after we are paid. I will be paying about £600 and my partner will be paying about £400, more than the maximum for most of the high interest savings accounts.

I wondered what people thought would be the best veichle for this. Do people think ISAs or regular savers? Is it worth putting the money in an ISA if it is going to be there for just a year? Is it worth opening up several high interest regular savers accounts and getting their good rate for a year?

I would appreciate your thoughts;

If you can, you could both apply for the 8% Regular Saver with First Direct. You can only pay in £300 a month so that £600 a month gone. I'm not sure if you would be allowed since first direct is HSBC but you could also try and get there 6% Regular Saver to sort out the rest of your money.

Cyrus

xylophone wrote: »

Do you want to pay tax unnecessarily?

Paying 20% Tax on an 8% Regular Saver is still a better rate than any ISA I know of and since they don't have a lump sum a reg saver is perfect.

MoneySaverLog

Cyrus wrote: »

If you can, you could both apply for the 8% Regular Saver with First Direct. You can only pay in £300 a month so that £600 a month gone. I'm not sure if you would be allowed since first direct is HSBC but you could also try and get there 6% Regular Saver to sort out the rest of your money.

Yes I have both.

Cyrus wrote: »

Paying 20% Tax on an 8% Regular Saver is still a better rate than any ISA I know of and since they don't have a lump sum a reg saver is perfect.

And they only want to save for 12 months too Seeing as the two of them could have a 8% and 6% account they could account for the full £1,000 a month target.

Cyrus

MoneySaverLog wrote: »

Yes I have both.



And they only want to save for 12 months too Seeing as the two of them could have a 8% and 6% account they could account for the full £1,000 a month target.

Boom, sorted.

We should start some sort of advice giving business.

bigadaj

Cyrus wrote: »

Boom, sorted.

We should start some sort of advice giving business.

There's £200 a hour in that you know.

Nine_Lives

ATEOTD if you're pulling it after 12 months then escaping tax isn't really a concern IMO. Getting the greatest return on 12 months however, is. With the rates that the ISAs are at, that can mean paying tax on the savings.