Help!!..Best saving account with highest interest rate in UK?

london2012london26

hello everybody, i have 500 pounds to open a saving account and i want to put in between 100-300 pounds a month in (maybe 400 some months)...
i have another account which will have my living money so it doesn't matter if i cant withdraw from my new saving account for a year or something but i will be wanting to put money in every month .... any ideas??? greedy but id love to find a account with like a 7-9% interest rate :-)
:money:

opinions4u

Links at the top of the page will help.

First Direct Regular Savings account pays 8% with conditions.

london2012london26

8% that sounds very good , but is it 8% on the saving in the account a month or 8% a year?? proper newb question but i need to no

Bank_Notes_2

Good Afternoon london2012london26.

Thank you for your post.

I would like to suggest that you put your money into an ISA.

You get interest and no TAX to pay.

You can top it up as you go along.

Depending on the risk you want to take will depend on the amount you get back.

london2012london26

thanks bank notes, i liked what opinions4u said 8% first direct saving account sounded perfect but didnt no i had to pay tax on my savings , guess il start searching for ISA ,thanks
soo do you guys no any good ISA??

opinions4u

london2012london26 wrote: »

8% that sounds very good , but is it 8% on the saving in the account a month or 8% a year?? proper newb question but i need to no

Savings accounts will accrue interest daily, based on the balance at the end of each day.

If you save up £300 a month you won't get a year's interest on £3,600. But you will get what's due to you.

ISAs are another option and there's another link at the top of this page. But a basic rate taxpayer will still earn more after tax from the First Direct account than it would from any cash ISA.

Do some reading.

john0

Would it not be better in the long run to start putting money away in to an ISA, each year transferring the old ISA in to a new one and growing the tax free pot?

Gromitt

I put £300/month into a FD Regular Saver, and at the end of the year, put it into an ISA

If you have a lump sum, then put that in an ISA straight away (upto your annual limit).

jamesd

It's not worth using an ISA until you've used the First Direct regular saver. For all tax rates the FD account pays more than you can get in an ISA of comparable term. Which means that you'd lose money by using the ISA instead.

You don't need to pay tax on savings directly if you are either not a tax payer or are a basic rate tax payer. Basic rate tax will be deducted automatically except in an ISA. If you are not a tax payer or if you are a higher or top rate tax payer you should let HMRC know so the tax can be adjusted.

MoneySaverLog

Time the regular savers to mature in April, better ISA rates around then :-)

Move the money saved in the regular savers into a new ISA, review any existing ISA. Are you still getting a good rate, or has it now nose dived? If so look to transfer out.

Start another regular saver, when the old one matures, and start again.

Any left over try building up a pot in a good instant access savings account, something around 3% would be good at the moment.