Hopeless Newbie Saver

Zahc

Hi all,
I find myself debt free with 20K in the bank, which is nice. The question is what to do with the 20K? I will probably need to access it within the next year as a deposit for a house (circumstances require me to rent for at least 6 months). Other than that I just don't want to pay any more to the tax man than I need to.
Any suggestions would be greatly appreciated as I have never saved in my life.... I can hear the gasps from here! :-)

atush

Current accounts are where the interest rates are good today. So that means you will pay tax.

Are you still saving? Try a regular saver? Have you joined your company pension scheme? Does the 20K include your emergency savings pot? If so, you'll need to save more so you still have once after you buy?

Have you done a spending diary so you know where every penny you spend goes?

Zahc

OK, Natwest Savings account is where it's sat at the moment, I'll do some sums. I've been told NISAs are the way forward(no tax) but it seems some 'ordinary' accounts' interest come out top even after tax? Incidentally, I don't mind paying my way (tax) I just don't want to throw my money away either.
One more thing that may be pertinent; I start drawing a pension this month.
As for the questions you asked:

Yes
Looking into it
Yes
At the moment.

jimjames

Zahc wrote: »

I've been told NISAs are the way forward(no tax) but it seems some 'ordinary' accounts' interest come out top even after tax?

If you've been told cash ISAs are the way forward then you've been misled.

If it is money you are likely to be spending in the next year or so then an ISA is pointless. Just find the accounts paying the best interest rates you can get, which at the moment are current accounts paying 5%, 4% and 3% depending on balances.

Far better to pay money to the tax man and get a better return than try to use avoid tax with an ISA account that pays less interest.

Zahc

jimjames wrote: »

If you've been told cash ISAs are the way forward then you've been misled.

If it is money you are likely to be spending in the next year or so then an ISA is pointless. Just find the accounts paying the best interest rates you can get, which at the moment are current accounts paying 5%, 4% and 3% depending on balances.

Far better to pay money to the tax man and get a better return than try to use avoid tax with an ISA account that pays less interest.

Wise words. I'll have a look around, thanks.

Zahc

My prayers have been answered. Thanks entrepreneur1.
I'm insulted that you even think I'd fall for this. Don't know how to report you for the scamming thieving scum you are, but someone will.


Hi Zahc,

I have a horticulture project in overseas (Kenya) and I am looking for funding of £20,000 for only one year. The returns are 8% per year and availlable at the end of one year.There are no charges and no taxes to pay. Please let me know whether you would be interested and it will be my pleasure to give you more details.
I look forward to hear from you.

entrepreneur1

jimjames

Zahc wrote: »

My prayers have been answered. Thanks entrepreneur1.
I'm insulted that you even think I'd fall for this. Don't know how to report you for the scamming thieving scum you are, but someone will.


Hi Zahc,

I have a horticulture project in overseas (Kenya) and I am looking for funding of £20,000 for only one year. The returns are 8% per year and availlable at the end of one year.There are no charges and no taxes to pay. Please let me know whether you would be interested and it will be my pleasure to give you more details.
I look forward to hear from you.

entrepreneur1

Report the message, hopefully they'll get booted off the site

Zahc

jimjames wrote: »

Report the message, hopefully they'll get booted off the site

Done.
I hadn't noticed the report button on the message. :mad: