Best way to save

Greg_M

I'm confused by all the options: ISA, NISA, Savings, investments....argh! My head hurts....

I need to save, around £1500/month, and be able to draw it out in January to pay HMRC.

Currently I have a very poorly performing ISA and Flexible Saver, and a soon-to-mature Regular Saver with HSBC. Overall I put my current savings at around £8k but I need to maximise that between now and January. Moving forward I need to be confident that my savings are working for me.

So, over to you Money Saving Experts.... Please help!

bowlhead99

Probably worth checking out the top current accounts. Sounds like your balance will grow up to 8k or so.

If you don't want to deal with multiple banks:
- Santander pay 3% gross on their 123 current account once you've got 3k in there, right up to 20k.
- Nationwide pay 5% on the first £2500 in their current account and 2.5% on their regular saver for £1000 a month
- Lloyds pay up to 4% on their current account (it's tiered so you need 4k in there to get that rate and then it doesn't pay on more than £5k..) and 4% on £400 a month regular saver

Which one of those is most suitable depends on how much other cash you have beyond your tax fund. Or of course you could look at combining those and others such as TSB at 4% on £2k - but it can be a lot of faffing about if you literally only want the account until 31 Jan.

Greg_M

I don't mind having multiple accounts, and I've looked into the Santander 123... Just unsure if current account and paying tax would be better than a (N)ISA...

It'll be an ongoing thing, restarting after every tax bill.

jimjames

Greg_M wrote: »

I don't mind having multiple accounts, and I've looked into the Santander 123... Just unsure if current account and paying tax would be better than a (N)ISA...

It'll be an ongoing thing, restarting after every tax bill.

Depends if you can beat 5% before tax with an ISA. I'm not aware of any that pay so well but you may do.