Investment Option

Keith601

Hi There
Need a bit of help understanding my best option for investment.
My wife and I have a Joint Santander 123 Current account. (3%)
I pay basic tax on this, but my wife does not.
I am looking at the new HSBC regular savings account (4%), bearing in mind I pay basic tax.
Can anyone tell me which would be my best option please.
1. Pay into the 123 Account.
2. Open the HSBC Regular savings account.
Thanks
Keith.

grumbler

It's saving, not investing.
And it's not a rocket science.
4% is better than 3% with tax or without it. For your joint account the tax is 10% instead of 20% if your wife submits the relevant form.

That said, if you have a big amount ready, the best is to combine a normal saving account (123 in this case) with a regular saving account: Dripfeed: Best saving technique

Also, FD 6% regular saving account is better than HSBC's 4%. And there are some current accounts that pay 5% on limited balance, i.e. more than Santander's 3%.