Where to put my savings?

Hi, we have £80,000 savings, where can we put this to make the most interest?  We would also be able to save £200 per month in addition.  We could tie in for 6-9 months as we will be moving house next year so need access to our savings for this.  All new to to this, would it be taxed?  Thanks in advance.

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  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    It wouldn't be taxed at source but you may owe tax if it was interest paid by a non ISA account.

    Interest from a Cash ISA is tax free/exempt.

    A regular saver might be best for the £200/month.
  • sunshine_and_rainsunshine_and_rain Forumite
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    It wouldn't be taxed at source but you may owe tax if it was interest paid by a non ISA account.

    Interest from a Cash ISA is tax free/exempt.

    A regular saver might be best for the £200/month.
    If we put the whole £80,000 into a saver account at an interest rate of 3.55% for standard six month fix would we earn interest of £2,840?  If so, would £1,000 be tax free then have to pay tax on the remainder? How much tax would we pay?  Thank you.
  • edited 16 November 2022 at 8:35PM
    StubodStubod Forumite
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    edited 16 November 2022 at 8:35PM

    £80,000 * .0355 = £2,840 for a year, so 6 months would be half...(£1,420)....if you are a basic rate tax payer you would pay tax of 20% on £420...

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  • RobM99RobM99 Forumite
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    It wouldn't be taxed at source but you may owe tax if it was interest paid by a non ISA account.

    Interest from a Cash ISA is tax free/exempt.

    A regular saver might be best for the £200/month.
    If we put the whole £80,000 into a saver account at an interest rate of 3.55% for standard six month fix would we earn interest of £2,840?  If so, would £1,000 be tax free then have to pay tax on the remainder? How much tax would we pay?  Thank you.
    £1420 as it's 6 months.
    Tax woud be that -£1000 so £420 at your tax rate.
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  • surreysaversurreysaver Forumite
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    Hi, we have £80,000 savings, where can we put this to make the most interest?  We would also be able to save £200 per month in addition.  We could tie in for 6-9 months as we will be moving house next year so need access to our savings for this.  All new to to this, would it be taxed?  Thanks in advance.
    The tax depends upon at which rate you pay tax. If you pay standard rate tax, you can earn up to £1k in interest before you pay tax, so you would end up paying tax on £420 of the interest at 20%
    I consider myself to be a male feminist. Is that allowed?
  • QyburnQyburn Forumite
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    You say "we", if you divide this into two accounts one for each, or into one joint account then effectively you have two £1000 allowances.
  • sunshine_and_rainsunshine_and_rain Forumite
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    Thank you for all your replies. I’ve attached a screen shot of the offer, it says six months so would it not pay the 3.55%?
  • Pompeydave1967Pompeydave1967 Forumite
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    No half of that..figure is yearly 
  • AudaxerAudaxer Forumite
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    It wouldn't be taxed at source but you may owe tax if it was interest paid by a non ISA account.

    Interest from a Cash ISA is tax free/exempt.

    A regular saver might be best for the £200/month.
    If we put the whole £80,000 into a saver account at an interest rate of 3.55% for standard six month fix would we earn interest of £2,840?  If so, would £1,000 be tax free then have to pay tax on the remainder? How much tax would we pay?  Thank you.
    As others have said, it would be £1,420 interest for 6 months. Assuming the interest is paid at maturity, then the £1,420 interest would be received by you in May next year, meaning that it would be £420 liable for tax in tax year 2023/24 along with any further interest you earn in that tax year. Just something to bear in mind.
  • Band7Band7 Forumite
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    If you kept your money  for an entire year in an account paying 3.55% AER*, you would get £80,000 x 3.55% = £2.840. But if you only keep your money in the account for half a year, you get £80,000 x 3.55% / 2 = £1,420.


    *AER stands for Annual Equivalent Rate. All savings accounts quote the AER, so it's easy to compare like with like.
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