which accounts and banks for 75K ?

london.cidade

Hello,
I find it difficult to understand UK banking system. all what i need is to have possibly best interest rate. it can be monthly or 6 monthly. but no more than 6 months. I will not add monthly money to the account. because i am unemployed. just 75k itself.

what should i do ? please explain to me, like you explain to a child step by step please . you have ISA, saving, and current accounts. all i know is, ISA tax free account, Saving accounts for individuals and Current accounts for businesses (cheque etc)
so what should i do ? should i go and ask for two different accounts as 1-ISA account (15k-16k whatever the allowance is) and 2-Saving account ?

last question : is it common in the UK to have foreign currency account ? i asked Natwest they dont have any foreign account. i would like to open euro account as well .

thank you very much

slowpoke_rodriguez

If you are unemployed, are you claiming benefits? If so, these may be affected by interest recieved. Non taxable interest such as ISAs and premium bonds may be the way to go. I'm not certain on this but it may be worth checking.
Otherwise, it's Club LLoyds, Santa 123 etc and Al Rayan bank for decentish interest rates.

london.cidade

I am resident but i don't hold a British passport. cant claim benefits.

I will be grateful for any advice. thank you again

coyrls

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

http://www.moneysavingexpert.com/savings/best-cash-isa

london.cidade

thank you for the links. I appreciate your views as well. your do's and don'ts.

for example, is it common practise to use ISA allowance ? then with the left money just go for best accounts ? should i go for saving or current account ?

it might be a very well known topic for yourself. unfortunately for me, the uk banking system is totally different. trying to learn it.

bigadaj

london.cidade wrote: »

thank you for the links. I appreciate your views as well. your do's and don'ts.

for example, is it common practise to use ISA allowance ? then with the left money just go for best accounts ? should i go for saving or current account ?

it might be a very well known topic for yourself. unfortunately for me, the uk banking system is totally different. trying to learn it.

Have a read through the 5% savings loophole article and thread.

If you aren't employed currently then you may struggle to get current accounts through credit scoring, no harm in trying a couple of applications though.

The highest interest rate is on current accounts, as you have a lump sum then you can just cycle money from one account to the next every month to meet the funding criteria. If they need direct debits there are some accounts you can add, just read through soem forum articles and threads, it's a little time and effort but can make a lot more money than a basic savings account, probably three times as much looking at your sum.

Cornucopia

The two main a/c types that provide better than average returns are Current Accounts and Regular Savings Accounts. With the various conditions attached, perhaps not the easiest account types for the OP to access.

ISAs have a place, especially for higher-rate tax payers and those who have already used the £1000 tax-free interest allowance, but at the moment, the returns are not great.

xylophone

At the moment, the highest rate is payable on current accounts but it may be that you are not in a position to be accepted for multiple current accounts.

You might try to open a Santander 123 current Account (£20,000) - you will need at least two direct debits.

http://www.santander.co.uk/uk/current-accounts/123-current-account/?cid=ppc-ca-goo-br-santander%20123&gclid=COelmsLlpM4CFRXhGwodNJQGzA

You might then try Cater Allen ( subsidiary of Santander) for a euro account.

https://www.caterallen.co.uk/personal-banking

You might open NS&I income bond account and have the 1% interest paid monthly into your Santander account.

http://www.nsandi.com/income-bonds

london.cidade

bigadaj wrote: »

Have a read through the 5% savings loophole article and thread.

If you aren't employed currently then you may struggle to get current accounts through credit scoring, no harm in trying a couple of applications though.

The highest interest rate is on current accounts, as you have a lump sum then you can just cycle money from one account to the next every month to meet the funding criteria. If they need direct debits there are some accounts you can add, just read through soem forum articles and threads, it's a little time and effort but can make a lot more money than a basic savings account, probably three times as much looking at your sum.

I have a current account in Natwest. they dont pay interest . Just %3 cashback for direct debits.

I keep reading but many new terms and different jargon for me. I hope, will get familiar with them soon. thank you for your suggestions

london.cidade

Cornucopia wrote: »

The two main a/c types that provide better than average returns are Current Accounts and Regular Savings Accounts. With the various conditions attached, perhaps not the easiest account types for the OP to access.

ISAs have a place, especially for higher-rate tax payers and those who have already used the £1000 tax-free interest allowance, but at the moment, the returns are not great.

so, ISAs are not for me at the moment ? because I have zero revenue in the UK at the moment.

I will check for current accounts and regular saving accounts. I can afford regular saving account with some money. thank you very much

london.cidade

xylophone wrote: »

At the moment, the highest rate is payable on current accounts but it may be that you are not in a position to be accepted for multiple current accounts.

You might try to open a Santander 123 current Account (£20,000) - you will need at least two direct debits.

santander.co.uk/uk/current-accounts/123-current-account/

You might then try Cater Allen ( subsidiary of Santander) for a euro account.

caterallen.co.uk/personal-banking

You might open NS&I income bond account and have the 1% interest paid monthly into your Santander account.

nsandi.com/income-bonds

thank you very much. that's very useful for me. it seems i will definitely go for santander accounts.

given that i am not working and my initial accounts' sums will be about 75K gbp. does that mean that i will not pay any tax ? because as i know sth like first 10600 gbp yearly revenue is tax free.