I've got £100,000 cash savings in my current account | Is Skipton Base-rate Savings the 1# choice?

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  • lr1277
    lr1277 Posts: 1,670 Forumite
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    edited 6 December 2023 at 9:24PM
    How does the personal savings allowance fit in to the amount of interest the OP will potentially earn?
    If the OP earns in excess of the allowance, will the OP have to complete a self assessment return and pay any tax? 

    You do not need to fill in a SA tax return just because of savings interest. The providers inform HMRC of the interest you have earned and they calculate any tax liability automatically. Unless you earn over £10K in interest then you do have to fill in a return .

    Cash ISA’s tend to pay less interest than taxable savings accounts. You need to work out how much less and if that is worth it for potentially not completing a tax return

    You are correct that historically ISA interest rates have been less, but in recent times many cash ISA's have been paying similar rates to equivalent non isa accounts. 


    Thanks @Albermarle
  • nbrewitt
    nbrewitt Posts: 73 Forumite
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    I can't believe that Barclays weren't on the phone to you constantly persuading you to put it elsewhere, very odd 
  • Eldi_Dos
    Eldi_Dos Posts: 1,610 Forumite
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    I once used a cash machine in Manchester Airport and there was one of those paper balance printouts still in slot. It read over £11k so maybe its more common  than you would think.
  • I would be inclined to split some between Skipton and fix others in notice accounts. Oxbury pay 5.51% for 90 days notice.
    Oxbury 90 days' is a good one if you are sure that you can wait for 90 days.
  • Middle_of_the_Road
    Middle_of_the_Road Posts: 620 Forumite
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    edited 6 December 2023 at 10:28PM
    Is it only in the last year or so, that rising interest rates have made it worth moving these large sums away from current accounts?
    I'm not sure what was a good easy access savings rate was 18 months ago, but a recent post mentioned a fixed rate around 0.4% 
  • I would stick at least £20k in a  cash isa unless you have already used this years allowance and put the other £80k in a high interest internet saver account with instant access if you intend buying a property soon.  It is not recommended that you put more than the £85k FSCS guarantee limit in one savings institution. To be fair interest rates have been pitiful until earlier this year but on such a large amount you have foregone quite a lot in interest by leaving it in a current account. 
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  • Oxbury no longer have a 90 day notice, only a 120 day notice at 5.53%

    Term Deposits

    Deposit a lump sum and watch your savings grow over a set period of time. Competitive fixed interest rates mean you'll know exactly what your return will be.

    Existing Customer 1 Yr Bond: 5.45% Fixed- Issue 11Fixed
    Min: £1,000.00Max: £500,000.00
    Apply Now

    Notice Accounts

    Notice accounts combine the flexibility of instant access accounts with the increased interest rates of fixed-rate bonds. Simply give us notice when you want to make a withdrawal.

    Personal 120Day Notice Account (Issue 23):5.53%AERVariable
    Min: £1,000.00Max: £500,000.00
    Apply Now

    Easy Access Accounts

    Our easy access accounts enable you to save whilst being able to access your funds on the same day, subject to our cut-off times.

    Personal Easy Access Account (Issue 1): 4.94% AERVariable
    Min: £1,000.00Max: £550,000.00
    Apply Now

  • Is it only in the last year or so, that rising interest rates have made it worth moving these large sums away from current accounts?
    I'm not sure what was a good easy access savings rate was 18 months ago, but a recent post mentioned a fixed rate around 0.4% 
    On £100k even 0.4% still works out to £400/yr so I'd argue it has always been worth moving these large sums away from current accounts that don't pay interest.
  • Is it only in the last year or so, that rising interest rates have made it worth moving these large sums away from current accounts?
    I'm not sure what was a good easy access savings rate was 18 months ago, but a recent post mentioned a fixed rate around 0.4% 
    I had a look at my old MSE emails (probably should delete some). This time last year Atom and Tandem had EA at 2.5%, 18 months ago it was Virgin and Chase at 1.5%. It doesn't really help OP, I guess, as they can't go back in time. Better late than never! 

    I am assuming that OP is either a higher or additional tax rate payer so it makes sense to max your ISA allowance with cash ISA rates being so close to EA rates. Put 20k now and 20k in April. It sounds like a LISA wouldn't be suitable for you given that you want to buy in under a year (and seems that you can likely afford a house over the LISA limit). Depending on how confident you are about timings, you could consider putting in some money in either a 90 day notice account or a 6month fixed saver, for slightly high rates than EA. You could also feed money into some regular savers that either allow early closure or early withdrawal. 
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