Best return on £100,000 savings

Mcqwerty

Just about to sell my house and clear £100,000 I`m not buying straight away and will be renting. Whats the best Bank / Building society to put the £100k into hopefully what I make in a year will go some way to help paying rent.
Whats the highest rate 6%? 6k return on a year?
Help please.

jem16

Sainsburys Bank is at 6%. Remember though you will pay tax on this so only 4.8% net or less if you are a higher rate taxpayer.

Mcqwerty

At what point do you start paying tax on your savings?

SkipClick

jem16 wrote: »

Sainsburys Bank is at 6%. Remember though you will pay tax on this so only 4.8% net or less if you are a higher rate taxpayer.

6.5% from another UK bank been on this forum if you do a search!!!.

jem16

Mcqwerty wrote: »

At what point do you start paying tax on your savings?

As soon as you have income of more than £5225 pa.

[Deleted User]

After you have earnt 5200 if your unemployed. If your in a job and earn more then 5200, then you pay 20%. If you earn more then 40K (including interest on accounts) then you pay 40% above this boundary.

ICESAVE, sainsburys, few goodens

jem16

SkipClick wrote: »

6.5% from another UK bank been on this forum if you do a search!!!.

Tesco's are doing 6.5% but only for 6 months. There might be other fixed possibilities.

Care to elaborate?

jem16

Yant1 wrote: »

After you have earnt 5200 if your unemployed. If your in a job and earn more then 5200, then you pay 20%.

Partly correct.

If you earn over £5225 but under £7455 (including gross savings income) you are only liable to pay 10% tax on your savings. However 20% will be taken off at source by the bank and you will have to claim the extra 10% back from HMRC.

cheerfulcat

The 10% band was abolished by Gordon Brown in his last Budget ( new rates effective April next year ).

McSaver

Mcqwerty wrote: »

Just about to sell my house and clear £100,000 I`m not buying straight away and will be renting. Whats the best Bank / Building society to put the £100k into hopefully what I make in a year will go some way to help paying rent.
Whats the highest rate 6%? 6k return on a year?
Help please.

he could also use an ISA to move 3K a year over to boost returns a little.