What to do with my savings

dohaexpat

Hello everyone.

Probably a very naive post here, but would appreciate any help. Returned to the UK from the Middle East on £50k salary in education (annual increment so ~£56k by 2030). Probably end up renting somewhere for ~£1.2k/month until we buy. I have £100k+ in a normal savings account with NatWest and still have a basic account with them. One comment from another topic I made regarding the salary & savings said:

In the meantime maximise return on your cash, using ISAs as a tax shelter ( sounds like you will be hitting 40% tax sooner rather than later).

I neglected any change of bank or bank account during my time in the ME, all I did was send £ back to the account. So, I’m looking for any advice I can do with my current savings and any savings going forward.

Any help is appreciated. Thank you

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6652503/what-to-do-with-my-savings

Assuming you are contributing to a pension you may well have a bit of headroom before hitting the higher rate threshold.

For tax the £100k isn't actually the key thing, it's the interest you get. How much do you expect to get per year £3-4k?

dohaexpat

@Dazed_and_C0nfused yes I will be automatically enrolled and the contribution will be 9.9% at the moment.

just checked and only 2k as there hasn’t been £100k+ there all the time.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81857483#Comment_81857483

Probably you are not getting the best interest rate as well. Have a read of this.

Savings | MoneySavingExpert

poseidon1

I think I made the comment about maximising returns on cash savings whilst deliberating whether to rent or buy a property.

Assuming you have not accessed cash ISAs, that should be your 1st option with £20k in this tax year. If wife has been given an NI number a further £20k In her name possible.

If your wife is a non earner, you may also wish to consider moving some savings into her name to use her personal allowance to shelter Interest from tax.

if you think you will probably rent for a year, consider 1 year fixed interest accounts for some of the funds.

Interest rates on instant access accounts likely to fall as the Bank Of England progresses with rate cuts, so as many people do on this forum keep an eye on your instant access accounts to ensure they remain competitive. It's easy to find your self languishing on less than competitive rates, as you are no doubt finding with Nat West.