Large sum short term investment

MDMD

wmb194 said:

Pipkin1812 said:

Thanks for the comments, most helpful. Am I likely to exceed the maximum amount of interest I can earn without paying tax on the interest if I were to put it into savings accounts? 

Yes, of course e.g., £400k @ 1% = £4k, £400k @ 2% = £8k. Premium Bond prizes are tax free, though.

It does depend on what other income the OP has. We don’t know if they have any of their Personal Allowance available.

eskbanker

Pipkin1812 said:

Am I likely to exceed the maximum amount of interest I can earn without paying tax on the interest if I were to put it into savings accounts? 

It's generally best to model what your net income will be from savings - in many cases differential rates mean that you'll benefit more from income that's taxable rather than ISA-wrapped, so it's not as simple as 'avoiding tax = A Good Thing'!