Best options to save my money

Banzai007

Hi, I've just sold a property and have £55k to put away in savings. I'm living at my parents and not looking to move out in the short term. I'm happy to lock my money away for 6-9 months and I'm wondering would ISAs be better than fixed interest bonds? I want low risk with guaranteed interest but want to pay the least tax as possible on the interest I make. Thanks for your advice. 

Bigwheels1111

Do you earn over £17,570 a year.

If so 20k in an ISA is more tax efficient.

Chip have raised their easy access today 4.48%.

Deposits and withdrawls are near instant with open banking.

https://moneyfactscompare.co.uk/

Click on savings and then pick the savings you want ie easy access etc.

Then click on rate order.

Exodi

Bigwheels1111 said:

Do you earn over £17,570 a year.

If so 20k in an ISA is more tax efficient.

Chip have raised their easy access today 4.48%.

Deposits and withdrawls are near instant with open banking.

https://moneyfactscompare.co.uk/

Click on savings and then pick the savings you want ie easy access etc.

Then click on rate order.

Not to be pedantic as I expect it was a typo - Chip rate is 4.84%, Tandem is 5%.

Back to the OP, an ISA would only protect £20k of the £55k and 6-9 months is too short a time frame for a Fixed Rate ISA (they usually start from 12 months, but current top 12m rate is 5.77%).

The top normal (easy access) cash ISA pays 4.5%.

"I want low risk with guaranteed interest"

I think this should read 'no' risk rather than 'low' risk if you want guaranteed interest. I think only savings products (e.g. easy access and fixed rate accounts) are relevant to you.

Are you married? Is there any possibility to utilise your SO's ISA allowance?

Alternatively, look at Premium Bonds (though not guaranteed, winnings are paid out tax-free).

Bigwheels1111

Exodi said:

Bigwheels1111 said:

Do you earn over £17,570 a year.

If so 20k in an ISA is more tax efficient.

Chip have raised their easy access today 4.48%.

Deposits and withdrawls are near instant with open banking.

https://moneyfactscompare.co.uk/

Click on savings and then pick the savings you want ie easy access etc.

Then click on rate order.

Not to be pedantic as I expect it was a typo - Chip rate is 4.84%, Tandem is 5%.

Back to the OP, an ISA would only protect £20k of the £55k and 6-9 months is too short a time frame for a Fixed Rate ISA (they usually start from 12 months, but current top 12m rate is 5.77%).

The top normal (easy access) cash ISA pays 4.5%.

"I want low risk with guaranteed interest"

I think this should read 'no' risk rather than 'low' risk if you want guaranteed interest. I think only savings products (e.g. easy access and fixed rate accounts) are relevant to you.

Are you married? Is there any possibility to utilise your SO's ISA allowance?

Alternatively, look at Premium Bonds (though not guaranteed, winnings are paid out tax-free).

Well pointed out, my turn.

Tandem is 4.65% for new accounts as of last week.

The bonus was removed.

Albermarle

Banzai007 said:

Hi, I've just sold a property and have £55k to put away in savings. I'm living at my parents and not looking to move out in the short term. I'm happy to lock my money away for 6-9 months and I'm wondering would ISAs be better than fixed interest bonds? I want low risk with guaranteed interest but want to pay the least tax as possible on the interest I make. Thanks for your advice. 

To be clear you can have say easy access savings account or fixed rate savings accounts, either within an ISA ( no tax to pay ) or outside an ISA ( maybe tax to pay). Interest on accounts not in an ISA tend to be a bit higher.
All savings accounts mentioned above and in the link supplied, have guaranteed compensation up to £85K, in case of any ( unlikely ) problems. So up to this level there is zero risk.

Dave_5150

At today's rates £20k in a top paying easy access ISA for nine months + £35k in a top paying 9 month saving bond should net you around £2,050 after tax if you are a basic rate tax payer.with no other savings income.

eskbanker

Exodi said:
"I want low risk with guaranteed interest"

I think this should read 'no' risk rather than 'low' risk if you want guaranteed interest. I think only savings products (e.g. easy access and fixed rate accounts) are relevant to you.

Albermarle said:

All savings accounts mentioned above and in the link supplied, have guaranteed compensation up to £85K, in case of any ( unlikely ) problems. So up to this level there is zero risk.

Just to be clear, there are a variety of risks, so, even though the subtext of the above comments is specifically risk of capital loss, other risks apply when choosing cash deposits, such as inflation risk and shortfall risk, i.e. there is no such thing as 'no risk' when it comes to what to do with money, it's just a case of choosing which risks are acceptable....