Confused about savings options

I have savings of about 50,000 pounds and with the interest rates going up wondering if I should lock it away in a fixed term account. I'm not sure about the ISA and if i would benefit from opening a fixed account ISA although the percentage of interest seems to be lower than normal fixed rate accounts. I also have 600 pounds a month earnings from a flat I own but I don't have a job at the moment. Only 10 years until I get my pension so wondering what was the best option to get the best returns as I don't have that much of an income and don't want to be wasting any sending it to the tax man if possible. 

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  • Albermarle
    Albermarle Forumite Posts: 18,796
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    I have savings of about 50,000 pounds and with the interest rates going up wondering if I should lock it away in a fixed term account

    That depends on when you are likely to need to access the money and what your view is on the future direction of interest rates.

     I'm not sure about the ISA and if i would benefit from opening a fixed account ISA although the percentage of interest seems to be lower than normal fixed rate accounts

    Normally ISA interest is lower, but if you would pay tax on non ISA interest, then it depends on the gap in interest rates. You may well be better off with the higher interest rate and paying tax, or you might not.

    However with your low income you can earn a lot of interest before paying any tax.

    Tax-free savings: check if you're eligible - Money Saving Expert

  • Sg28
    Sg28 Forumite Posts: 329
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    I have savings of about 50,000 pounds and with the interest rates going up wondering if I should lock it away in a fixed term account. I'm not sure about the ISA and if i would benefit from opening a fixed account ISA although the percentage of interest seems to be lower than normal fixed rate accounts. I also have 600 pounds a month earnings from a flat I own but I don't have a job at the moment. Only 10 years until I get my pension so wondering what was the best option to get the best returns as I don't have that much of an income and don't want to be wasting any sending it to the tax man if possible. 
    As it stands now with your current income you will pay no tax on your savings. So theres no need for ISAs. 

    Fixed v easy access is matter of personal circumstances. If you are sure you will not need access to your money (or a portion of) then fix for a higher rate. Otherwise keep to easy access. 

    If in future you start working and your income goes up then at that point you should re evalute if you would be better off usings ISAs to reduce tax. 

    Ex Sg27 (long forgotten log in details)

    Massive thank you to those on the long since defunct Matched Betting board.
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