Best way to maximise interest on £10k savings

Baggersss

Hi,

I have £10,000 that I'm happy to lock away for 2 years but I don't know which type of account is the best way to do this. I am a higher rate tax payer so need to be careful not to go over the threshold of £500 interest. I know some pay interest annually and some pay on maturity so this is vital not to go over. I won't be adding any more to the £10,000.

Any help on which accounts would be best is much appreciated :)

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6655650/best-way-to-maximise-interest-on-10k-savings

Why is it vital not to go over £500?

There may be a valid reason but not from what you've posted.

Would you consider regular savers with a few different organisations?

NoMore

Used your ISA allowance ?

InvesterJones

The gilt TN28 matures on 2028-01-31, and as a higher rate tax payer would lock in around 3.36% net annual yield when it does so (the equivalent of 5.592% in an account you paid tax on all the interest).

jimjames

Maximise interest by paying around £2000 a month into a series of regular saver accounts. But it might be that you aren't really looking to maximise interest but get the best rate from a single account. Down to the effort you want to put in but if you want to avoid getting over £500 then a current account will do that.

Woodstok2000

Just being a higher rate taxpayer doesn't mean you need to stay below £500. Earning £1000 interest and paying tax is better than £500 tax free.

surreysaver

You need to look at the rates after tax, not avoiding paying the tax in the first place.

It would be better to pay the tax on an interest rate of 7%, rather than have a lower rate of 3% and not pay tax.

It depends how much effort you're willing to put in to researching, working out, and the leg work of managing savings accounts

Ocelot

Either a 2 year fixed rate ISA, or, if you have exceeded your ISA allowance this year, a 2 year fixed rate bond.

https://moneyfactscompare.co.uk/isa/2-year-fixed-rate-isas/

https://moneyfactscompare.co.uk/savings-accounts/2-year-fixed-rate-bonds/

Yorkie1

If you go for a multi-year NS&I product, they will report the interest to HMRC at maturity.

Many other providers will report the annual interest on a multi-year product, even if you can't actually access it. So if you want to avoid a bulge of interest which might take you into an even higher tax bracket avoid a multi-year NS&K product.