HLP PLS- Best Short Term Savings Account for a Lump Sum?

Huggins

Hi I have a approx 20k which i intend to put into savings for a period of 3 - 5 months max (can be either fixed or Instant Access Acc.) before having to release the money at end of month 5. Can anyone tell me what the best short term savings account would be and with which provider. Also what would the tax on interest earned be, roughly. Kind Regards Huggins

Former_MSE_Dan

http://www.bradford-bingley.co.uk/savings/product/internet-saver.asp

Bradford and Bingley's Internet Saver at 6.4% would make you approx:

In 3 months: £250 (after basic rate tax) , £185 (after higher rate tax)

In 5 months: £415 (basic), £310 (higher)

Huggins

thx dan canyou pls explain what the basic and higher brackets are - i'm not 'read up' on this area! thx again for swift reply

Huggins

can anyone else help me pls.

Dan is the B+B account the very best available at the moment - a work collegue has suggested ICEBank or similar - i 've never even heard of them?!

sav4it

Higher bracket means if you earn ( any type of income) enough to qualify for the 40%. You would be taxed at source at the 20% rate and need to declare your savings in your tax return and pay the extra tax due on your savings.
hmrc website provides the amounts before classed as HR payer. Look for rates and allowances.

Icesave is currently paying 6.3% ( Iceland). I've recently opened one and apart from an initial hiccup, looks very easy to use.
http://www.icesave.co.uk/index.html

Their interest rate guarantee:
The gross Annual Equivalent Rate of Interest (AER*) paid on balances over £250 is guaranteed to exceed the Bank of England Base Rate* by at least 0.25% until 1 October 2009 and thereafter not to be lower than the Bank of England Base Rate until 1 October 2011.

B&B guarantee:
Interest guaranteed to at least match the Bank of England Base Rate until 1st January 2009.