We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Short term tax efficient “saving”
Options

smash7
Posts: 424 Forumite
I am looking for a short term tax efficient way to distribute approximately £350k
We will need access to the money again within 6-12 months but do not want it just sitting in a current bank account.
We are two higher rate tax payers and will not have any debt or mortgage. We do not have any current savings (apart from pensions).
My initial thoughts are to both open a cash ISA and max out premium bonds. I don’t expect a huge amount of interest but would like to be tax efficient with as much as possible.
Many thanks in advance!
Que Sera, Sera
0
Comments
-
£100K in Premium Bonds is likely to be worth doing, but cash ISAs generally less so - however, if you'd pay tax at 40% on non-ISA savings interest (above £500), some cash ISAs should outperform the net interest you'd earn on non-ISA savings, although only for £40K between you.
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ lists options for easy access savings accounts but it's pretty slim pickings at the moment.
1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards