£200-£400 per month

penny71

Hi
I have a min of £200...max £400..... per month "spare cash" ...now then, I also have a bad debt/loan of just under £9k (interest frozen), which, if I pay off in full, attracts a 40% discount....my logic is to carry on paying the minimal repayment amount on the debt (at the mo, only £24 pm) and save the £5400 lump sum as quickly as poss to just clear it in one go....any advice as to the best place to turn my spare cash into £5400 as quick as poss

hope that makes sense
thank you for your advice
and be gentle with me, £££ is not my forte, but am doin my best!
xxxx

Ian_W

Hi Penny,
Assuming you're a taxpayer and not already using your £3000pa ISA allowance then I think your first port of call should be to open an ISA as the interest will accumulate without having 20% savings tax deducted. Kazza has posted an up to date list of the best available - HERE.
Some have a minimum opening balance but for others it's just £1.

Once you've filled that up, assuming that you do before the start of the new tax year on 6/4/08 you should look at Martins articles on regular savers and best instant access accounts to consider for any surplus.

penny71

Hi Ian
thank you, I already have an ISA (full up) and a high interest regular savings account....was just wondering if there were any other options for earning more on this surplus income
Z
:T

chesky369

What percent is charged on your debt? If you're only paying the minimum per month, wouldn't it make more sense to pay it off earlier, using the £3k minimum from your ISA, plus regular payments of £300 per month instead of £24.

penny71

Hi Chesky
if you read my first post, you will see that interest is frozen on the debt of £9k....and if I pay in full, there is a 40% reduction on this amount...so logic says, just pay the 24 quid a month until I have saved £5400 (discounted amount)....there's no point me increasing the monthly amounts, I am better off saving that extra cash to build up £5400........My original question referred to the best place to get highest interest on my savings really
Z