Where to put my money?

Phaelok

Dear all,

To date I have the following amount saved in these accounts:

£20k in Santander (1-2-3)
£2k in TSB (3%)
2 x £3k in Tesco accounts (3%)
£2800 in Halifax HTB (4%)
£6000 in premium bonds
£1200 to probably put back into premium bonds.

I used to have a Nationwide account paying 5% on £2.5k, however, this was closed the other day as I had this for a year.

Please, can any of you advise on where else I can put additional money. I only have two direct debits from Santander and notice that other accounts require this also.

I want to avoid paying tax above the £1k and believe I cannot open an ISA account given I have a HTB already.

Arggh...any help gratefully received!

Thanks

jimjames

What are you saving money for? House purchase?


What about regular savers? Lloyds account at 4%?

Phaelok

jimjames wrote: »

What are you saving money for? House purchase?


What about regular savers? Lloyds account at 4%?

Sorry...I should have said!

I am saving for a house deposit but will probably wait another year or two given I have few bills to pay at the moment.

The issue with the Lloyds account at 4% is that it requires two direct debits. I only have two direct debits going out in total from my Santander!

Jox

How about the First direct 6% regular saver (but you need to have a current account with them). Can pay up to £300 a month into the saver but can't make withdrawals.

xylophone

is that it requires two direct debits

Had you considered opening a Tesco Internet Saver and and Easy Access Saver - there is a DD "pull" facility on these.

Pincher

Phaelok wrote: »

I want to avoid paying tax above the £1k and believe I cannot open an ISA account given I have a HTB already.

We are all in the same boat, the £1,000 allowance is all used up.

The money in NS&I Income Bond, is therefore paying 20% tax, so 0.8% after tax. :mad:

You do have:

£11,100 capital gain allowance

£5,000 dividend allowance

Which I have also used up for 2016/17.

So I am forced to pay:

20% for interest over £1,000

10% for gains over £11,100

7.5% for dividend over £5,000

Now, BT.A is going ex-dividend on 11th Aug 2016, paying 9.6p dividend per share.

I am toying with this idea:

Take some money out of the Income Bond, set up a limit order to buy BT.A at 390p, with dividend,

When it goes ex-dividend, set up a sell limit order, for 410p.

BT.A has been bobbing up and down between 384p and 414p in the last month.

The buy and sell costs money: 0.5% stamp duty, dealing charges (buy and sell).

A little bonus is, if I do incur a loss on the buy and sell, it can be used to offset gains elsewhere, at 10%. The 9.6p will pay tax at 7.5%, as opposed to 20% if it was interest from NS&I.

Afterwards, put the money back in NS&I.

Cake and eat it. Day dream or who dares wins?

DiggerUK

I'm a fan of Premium Bonds as a place for ready cash. That said, I wouldn't have so much in PB's as you currently hold. Would suggest you go for as many regular savers as you can, then at maturity drop back in PB's as a holding a/c..._