Savings and tax question - please help!

masterp_2

Hi,

I am very new to this site and so if I ask anything stupid please bear with me. I have two specific areas I need help with.

Firstly:

My wife is self employed and wants to put a monthly amount aside to cover her tax bill into a savings account so that it can earn some interest. What account would you suggest - I am interested in the ICESAVE account. The A&L Direct saver doesnt pay any interest in those months when a withdrawal is made - and obviously we will be withdrawing the money to pay her tax bill. Any other accounts/suggestions?


Secondly:

I am going to become a student again for the next 4 years from October of this year. I will be paid a tax free stipend. Would it make more sense for me open the saving account (whichever one you guys recommend!) in my name as I will not be paying tax and still have my personal allowance?


Thanks for you help.

MadSage

Amazing... I was just about to write a post asking the same question as your first question

I have all money paid into my old Halifax Liquid Gold account (which my parents opened years ago). This is where I keep any money for my tax bill usually, or in my Halifax current account. So it's hardly gaining any interest, unlike my savings which I have in an A&L DirectSaver.

So yeah, I also want an account with high interest to keep my tax money in and not lose interest when I have to withdraw. I would also like to have access to the account online. I've seen ICESAVE mentioned, but I've never heard the name until I came here. I tend to have more trust in well-known names.

masterp_2

Thanks for the reply.

Im fairly new to this site but looking through Icesave seems to have a good reputation and good feedback. Martin's other tip (ICICI) doesnt seem to have particularly good feedback.

I would also like a "trusted" name but these are the ones with lower rates or catches in the account.

jem16

How about Sainsbury's Bank Internet saver at 6%. It's part of HBOS group.

Sainsbury's Bank Internet Saver

MadSage

Thanks for spotting that. I've just realized that was on a page I looked at earlier, but my eyes glanced over it for some reason. It looks slightly better than ICESAVE, but interest is paid annually instead of monthly. Not a problem for me though.

erb

masterp wrote: »

Hi,

I am very new to this site and so if I ask anything stupid please bear with me. I have two specific areas I need help with.

Firstly:

My wife is self employed and wants to put a monthly amount aside to cover her tax bill into a savings account so that it can earn some interest. What account would you suggest - I am interested in the ICESAVE account. The A&L Direct saver doesnt pay any interest in those months when a withdrawal is made - and obviously we will be withdrawing the money to pay her tax bill. Any other accounts/suggestions?


Secondly:

I am going to become a student again for the next 4 years from October of this year. I will be paid a tax free stipend. Would it make more sense for me open the saving account (whichever one you guys recommend!) in my name as I will not be paying tax and still have my personal allowance?


Thanks for you help.

1) Icesave has worked well for me and the interest rate is guaranteed to be rise with the base rate for a long time.
2) I agree use your tax free allowance by getting the interest in your name and register to get it gross.