The Top Easy Access Savings Discussion Area

Nikolic

I'm currently with Natwest so was looking to open their e-Savings account purely because it will be easy for me to transfer funds online between the two accounts. It's interest rate of 6.5% is not too bad, I'm 18 and earn under 6k a year so an ISA isn't really of use to me.

Would the natwest account be the best one to go for?

wheelz

veronica46 wrote: »

Also the Dutch PM was highly unsupportive of Dutch investors who lost in Iceland... what chance would a UK saver have in their unlikely ( and I must stress unlikely) downfall?

Where did he say that? Have you got a link? If you haven't got any proof I suggest you stop saying things that are unfounded and plain wrong.

I quote something similar from another thread about ING (the 'are you leaving it in ING thread'.

START OF QUOTE

Quote:
Originally Posted by Pssst
Remember it is the Dutch Government who are saying that they will not bail out Dutch account holders of Icesave as its up to the Icelandic Governement to do that.

Quote: "Sorry, I've not read that anywhere. Is there a weblink to a report detailing that the Dutch government has decided NOT to protect its citizens? The last I heard, the Dutch had agreed to lend Iceland the money to pay back its savers everything.

I could be wrong though." (sorry don't know how to quote two messages).
///////

Bankrupt Iceland


More than 100,000 residents of the Netherlands have accounts in the failed Icelandic bank, Icesave. Finance Minister Bos and Central Bank President Wellink also sought to reassure Dutch people with deposits in Icesave that they will get everything up to 100,000 euros back, one way or another.

Source: http://www.radionetherlands.nl/curre...-credit-crisis

CluelessJock

Nikolic wrote: »

I'm currently with Natwest so was looking to open their e-Savings account purely because it will be easy for me to transfer funds online between the two accounts. It's interest rate of 6.5% is not too bad, I'm 18 and earn under 6k a year so an ISA isn't really of use to me.

Would the natwest account be the best one to go for?

You are right to say that an ISA would not give any immediate tax benefit with earnings of £6K. However, don't write it off without considering your circumstances.

Why are you saving, how much and how long for?

If you intend saving for the long term and don't use your allowance in any year it will be lost and could ultimately cost you tax.

Let's say you put £3600 in an ordinary account this tax year and got a new job at say £10K. You would then become a tax payer and if you did not move the money to an ISA this year it would remain in an account attracting tax at 20%.

The best example I have come across is a man who retired at 59 and as the interest from his lump sum and savings did not put him above the allowance he simply put them on deposit and claimed gross interest, failing to use 5 years ISA allowance. When he took his pensions at 65 he became a tax payer and the funds he had on deposit attracted tax. The result is he is now paying tax on approx. £15K (and that's only since he retired), which a little forward planning could have avoided.

As I say the benefits would depend on you becoming a tax payer, how much you have to invest etc.

CJ

Nikolic

CluelessJock wrote: »

You are right to say that an ISA would not give any immediate tax benefit with earnings of £6K. However, don't write it off without considering your circumstances.

Why are you saving, how much and how long for?

If you intend saving for the long term and don't use your allowance in any year it will be lost and could ultimately cost you tax.

Let's say you put £3600 in an ordinary account this tax year and got a new job at say £10K. You would then become a tax payer and if you did not move the money to an ISA this year it would remain in an account attracting tax at 20%.

The best example I have come across is a man who retired at 59 and as the interest from his lump sum and savings did not put him above the allowance he simply put them on deposit and claimed gross interest, failing to use 5 years ISA allowance. When he took his pensions at 65 he became a tax payer and the funds he had on deposit attracted tax. The result is he is now paying tax on approx. £15K (and that's only since he retired), which a little forward planning could have avoided.

As I say the benefits would depend on you becoming a tax payer, how much you have to invest etc.

CJ

Thanks for your reply. I've just started University and am only working casually as a Barman so my income will not come anywhere near £6k for at least three years. I can see where you are coming from with ISA, I currently have about £2k of my own money sitting in a savings account which I will move into an ISA as it's unlikely I'm going to need it any time soon. The other £2k is mainly my student loan, which as I'm living at home, I'm not really going to need. Hence why I like the idea of the Natwest account which allows me to transfer the money easilly online between the two accounts.

To add to all this, I've just opened up my Halifax Student Account which currently has a £500 0% overdraft, once my student loan is being paid into it this should increase to £3000. I will then need an account where I can transfer that to to maximize on the interest. Any ideas? I know there is a student board but I think this will get more attention here, and is still to do with savings.

Thanks again

shuckie

please help, I have approx £5000 to invest, I have already opened an internet account with Kaupthing Edge. I am not sure If I should stick where I am or go somewhere else. I need instant access and dont want to lose any interest on withdrawals. Please help. confused.

Hannahlouise1

If I have £240,000.00 to invest for a short term, how do I ensure that I spread the money safely into different financial institutions? As I will need to have instant access in order to buy a house in a few months time, how do I get the best return for that investment?

Baldur

Hannahlouise1 wrote: »

If I have £240,000.00 to invest for a short term, how do I ensure that I spread the money safely into different financial institutions? As I will need to have instant access in order to buy a house in a few months time, how do I get the best return for that investment?

See HERE on the main site.

PRINCESSKERRY

Hello

I wondered if anyone had any good recomendations, I have around £9000 to deposit somewhere, currently it's sitting in a Lloyds savings account at a rate of 3.??% as that is the bank I have my current account with so they deposited the cheque to clear in a new savings account in the hope I would leave it there.
We will need the money around June / July next year for a house extension, but in the meantime I do not work so dont pay tax so am thinking I should deposit it somewhere like the Tesco account as even by next year it would have grown by around £300.

Thankyou

Kerry

Baldur

PRINCESSKERRY wrote: »

I wondered if anyone had any good recomendations, I have around £9000 to deposit somewhere, currently it's sitting in a Lloyds savings account at a rate of 3.??% as that is the bank I have my current account with so they deposited the cheque to clear in a new savings account in the hope I would leave it there.

Frankly, virtually any account sounds better than your current LTSB one.

Easy access accounts, like the Tesco offering, may well have their interest rates reduced in line with any BoE rate reductions.

If you are sure that you will not need access before next June/July, there are currently a few decent 6 month fixed rate accounts available, which would ensure that you don't experience a sudden interest rate drop, see http://www.moneyfacts.co.uk/savings/bestbuys/short-term-fixed-rate-bonds.aspx

andy_armitage

Hi all I am new here and a fellow icesaver! I am looking for a new account and wondered if the birmingham/midshires is any good and mostly SAFE, I do believe it's owned by HBOS, any advice appreciated I wouldn't normally even worry about putting my money in a bank but in this climate I am petrified as I thought we had lost all our savings. Thanks in advance
Andy