Finally able to save for the first time in years... Help

icklejulez

Hi,


For the first time in around ten years I will now be debt free and able to start saving, probably around £5-£10k this year. Where is the best place to hold this money?


I know this isn't going to make a fortune however, I would rather be as smart as possible. Where would you hold this money?

rb10

Santander 123 current account, gives 3% on up to £20k.

There's a £2/month fee, but you'll probably get this back through cashback on direct debits (do the maths!).

You can also get around £50 back by switching through Quidco.

Assuming you save £10k, with savings spread evenly over the year, you can expect to get around £120 in interest (after basic rate tax). Do the same next year, and it'd be £360 (assuming interest rates don't change).