short term savings account advice please

vij

I have been very lucky in that I have a windfall bonus of approx £10k being paid on saturday which is subject to capital gains tax. I was planning on putting 1/3 of the total payout into a no access savings account for 6 months as capitial gains as far as I know is not due until april - that way I can squeeze a bit of interest out of the money and still know it is there for paying the tax when it is due. Can anyone on where is best for this. I am also wanting to save £2, 500 for emergencies again in a limited access account hopefully with a good interest rate.

Many Thanks

Aegis

If you've not made significant capital gains this year, it might be that you pay less than you think. You have an annual allowance of (I believe) £9200 before you pay any capital gains tax, so if you've not made any gains this year, only £800 will be subject to CGT.

Emergency funds work well in cash ISAs, as those are tax-free and the best have very good savings rates. While they are often instant access, the knowledge that once you remove the money it can't be replaced into the tax-free wrapper until the following year (assuming you max out your £3k cash ISA allowance this year, always a good idea if you're saving) means that you're a lot less likely to want to take money out from there instead of somewhere else.

As for the rest, there are a few articles about the best saving accounts, and this area tends to stay on top of the market, so you'll probably be able to find one that offers over 6% gross income without too much trouble. If you have enough left over and don't need the money for a year you could try a regular saving account (look around the forum for the best) or a tax-free index linked savings certificate (only from NS&I).

Good luck!