Savings

mauriceuk

Hi i need some financial help. I have around £4000 to invest and not sure what is best way to do this. Either bank account or cash isa. I will probably have to make some withdrawal at some point so not long term. Any ideas be most welcome. Cheers

ColdIron

You are looking at saving not investing, have you read the Top Savings Accounts link above?

pinkdalek

Stick it in a Cash ISA, tax efficient and most providers will offer ones with access if you need it, plus you will be able to add to it (upto £15k each tax year).

Always worth though to review (at least yearly) as rates can drop and better ones may be available in April to transfer to.

colsten

£1,900 in a TSB Plus, £2,100 in a Nationwide FlexDirect, with a monthly £1K SO between the 2. Pays 4% after BR tax, which is at least twice as much as you would get in a cash ISA.

Review before 12 months are up and adjust according to best rates in the market then.

colsten

pinkdalek wrote: »

Stick it in a Cash ISA, tax efficient

Sorry but this is a bad suggestion. Tax efficiency is irrelevant if you can get twice the amount of interest after paying tax.

pinkdalek

colsten wrote: »

Sorry but this is a bad suggestion. Tax efficiency is irrelevant if you can get twice the amount of interest after paying tax.

I was trying to make it as simple as possible for the OP.
If you want to move money around each month, jump through hoops to get an extra 1% or so then fine.
It is still tax efficient in an ISA as any income from this is not taken into consideration if you need to do a tax return, also interest earned on standard accounts can in effect take you over your tax threshold. (I can appreciate in current climate the rates are low and may not apply currently).
What if somebody in todays climate invests £15k each year in a Cash ISA, let's say for arguements sake the rates start to increase? Previous years allowances can be transferred also.

Also as morbid as it sounds, if you die, the money can be transferred without losing the tax free interest.

jimjames

pinkdalek wrote: »

I was trying to make it as simple as possible for the OP.
If you want to move money around each month, jump through hoops to get an extra 1% or so then fine.
It is still tax efficient in an ISA as any income from this is not taken into consideration if you need to do a tax return, also interest earned on standard accounts

It might be relevant if you have multiples of £15k that you want to save but the op hasn't and are not looking long term.

In that situation making the most interest is surely better than chasing a tax break. It's also more than 1%, even after basic tax you'll get 4x as much interest.

If you'd explained your suggestion was for ease rather than the best return it might have made more sense.

mauriceuk

Thanks for all the information. It is more a savings than investment. Just a matter of finding the best value. I do appreciate it wont make me millions but even a small return would be beneficial for me. Any good companies you recommend? Cheers

colsten

Nobody has suggested that you invest. We are all talking about saving, and - with one (bad) exception - people are suggesting you should be maximising the interest you make.

I have given you quite detailed suggestions for essentially the best deal you can get (short of using regular savers) in post 4. What don't you like about that suggestion?

ColdIron

mauriceuk wrote: »

Any good companies you recommend? Cheers

Have you read the Top Savings Accounts link above?
Have you read post #4 above?

mauriceuk

i dont have any money to put in to any account. This is just 4000 that i have recently inherited.