Road Fund Licence

Vaux

I have to disagree that paying for 12 months up front is cheapest. Monthly DD incurs a 5% fee {when I did mine} but there are 7% savings accounts available. If my calculations are correct, then in month 1 you can earn 7% on 11/12ths of the cost + 2% on 1/12th. Month 2 you earn 7% on 10/12ths + 2% on 2/12ths and so on over the 12m period.
Plus, some bank accounts need DDs to avoid costs/earn rewards, so this gives one to use. 

The_Unready

Where are these 7% instant access savings accounts that you refer to ( and it's Vehicle Excise Duty these days)?

la531983

Where are you finding these 7% savings accounts that let you deposit a few hundred quid and then withdraw it in 12 stages in a year?

born_again

From MSE guide this is the only 7% savings acc (excluding reg savers).

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

The Santander Edge Saver account* pays 7% on up to £4,000, though this includes a 2.5% bonus for the first 12 months. This means the rate will drop after this time.

To get the account, you need a Santander Edge current account – this pays cashback but has a £3 monthly fee. To keep the current account you must deposit at least £500 a month and have two or more active direct debits. But don't be swayed by the 7% rate – it's crucial to take into account the ongoing monthly fee.

Car_54

Even at this fanciful 7%, my trusty spreadsheet says you'd only save £2.17 of a £180 VED over a year.

la531983

Car_54 said:

Even at this fanciful 7%, my trusty spreadsheet says you'd only save £2.17 of a £180 VED over a year.

Now add in the monthly fee for the current account you need to have along with this.

Arunmor

Please name these 7% accounts I have to invest money for my daughter.

Nasqueron

Arunmor said:

Please name these 7% accounts I have to invest money for my daughter.

Go on the savings forum, there are special accounts for kids and there is a good list there - do you mean put money away or actually invest though? I would suggest the former is easy, latter maybe better with an IFA even if just a free consultation which many offer

Iceweasel

How much money do you think there is in this 'Road Fund' ?

35har1old

born_again said:

From MSE guide this is the only 7% savings acc (excluding reg savers).

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

The Santander Edge Saver account* pays 7% on up to £4,000, though this includes a 2.5% bonus for the first 12 months. This means the rate will drop after this time.

To get the account, you need a Santander Edge current account – this pays cashback but has a £3 monthly fee. To keep the current account you must deposit at least £500 a month and have two or more active direct debits. But don't be swayed by the 7% rate – it's crucial to take into account the ongoing monthly fee.

If you don't deposit £500 or setup the direct debits no fee charged and you can still open the savings account. 
After the year close and reopen savings account 

LightFlare

My VED was £20 this year --- where's this 7% saving account, I might save 50p