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ISA/Savings account? Confused...
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PRINCE$$
Posts: 84 Forumite
Hi all,
This may be really stupid of me but I've read Martins articles and am still confused about what best to do. I'm wanting to save a small amount of money (£200-500 a month) and would want penalty free access to it should the need arise. I currently have A & L premier direct current account and a plusSaver though I have no idea what the saving one is and have never used it. I also have an HSBC current account and an old saving account with them that I don't use anymore.
Any idea whether I'd be best off with an ISA or a savings account? Also, my A & L current account pays 6.1%, is this not more than most savings accounts?
Any help much appreciated
Cheers
This may be really stupid of me but I've read Martins articles and am still confused about what best to do. I'm wanting to save a small amount of money (£200-500 a month) and would want penalty free access to it should the need arise. I currently have A & L premier direct current account and a plusSaver though I have no idea what the saving one is and have never used it. I also have an HSBC current account and an old saving account with them that I don't use anymore.
Any idea whether I'd be best off with an ISA or a savings account? Also, my A & L current account pays 6.1%, is this not more than most savings accounts?
Any help much appreciated
Cheers
0
Comments
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An ISA stands for Individual Savings Account. It is nothing more than a tax wrapper. A cash ISA is just a savings account that has no tax chargeable on the interest, which is subject to a maximum deposit of £3000 per year. There is nothing more complicated to it than that.
6.1% at basic rate tax is 4.88%, the top paying ISAs earn more than this, therefore an ISA is better.0 -
The 6.1% with your current account is only on the first £2500 anyway. if you did 'save' £500 a month after 5 months you'd only be earning 0.1% on everything above £2500.0
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