£10K Investment Options

focus77

Hello

I have £10K to invest and am considering my options and would appreciate your suggestions.

I am a basic rate taxpayer whose annual income exceeds the Personal Allowance.

The only active savings account I have is a First Direct Regular Saver that will mature on 18 March 2024 with a balance of before 7% interest is applied. I understand the interest earned will be within my Personal Savings Allowance for the 2023/24 tax year. 

At the moment I am considering opening one or more of the following accounts and would like to know which option will return the highest net interest income:

1) NS&I Guaranteed Growth Bond 6.2% fixed for one year

2) Shawbrook Bank Cash ISA 5.83% fixed for one year

3) Nationwide BS Regular Saver 8% for existing customers and utilising the maximum £200 per month contribution over 12 months

I am open to other savings account suggestions.

Thank you for your time and advice.

Dazed_and_C0nfused

Is your non savings non dividend income (earnings, pension, rental income etc) high enough that you won't have any savings starter rate band available?

NB. If your non savings non dividend income is more than £17,570 you wouldn't normally have any savings starter rate band available.

[Deleted User]

Hi,

if you don't already have a maxed out (£20k) ISA this year then the 5.83% Shawbrook looks good, if you're happy with the 1 year fix.

subjecttocontract

You could put your £10,000 in an easy access ISA then do an ISA transfer to a  Santander 1 year fix at 5.6%. This comes with a £50 bonus making a £10,000 deposit return of 6.1% tax free, equivalent to 7.62% for a 20% taxpayer.

focus77

Dazed_and_C0nfused said:

Is your non savings non dividend income (earnings, pension, rental income etc) high enough that you won't have any savings starter rate band available?

NB. If your non savings non dividend income is more than £17,570 you wouldn't normally have any savings starter rate band available.

Yes I do not have any savings starter rate band available based on the threshold you referenced