Savings help

gadget88

My wife makes around £35 interest on savings right now but it’s quite low. I make as little as 10 pound.

Is it right the best way is to open a fixed rate for my ten and pay interest monthly.

With my wife is it okay she opens a 20k isa and puts rest in a fixed account? Again interest paid monthly so she can transfer it out?

Just wondering if that’s the standard process fed up asking AI comes up sorts of answers to it. We opened a bank of Scotland but they don’t cover joint bonds right now so is best she opens her own isa and fixed? I assume she can have both?

Ayr_Rage

Forget the interest.

What, exactly, are the capital amounts that you and your wife have in savings and how is that split now.

Who pays income tax and at what rate?

There is no "standard process", every situation is different.

gadget88

https://forums.moneysavingexpert.com/discussion/comment/82087952#Comment_82087952

Thanks she pays income tax as she works 30 hour and I work 16 hours. We don’t make much interest not sure if it’s worth hassle of moving it around

kimwp

https://forums.moneysavingexpert.com/discussion/comment/82087955#Comment_82087955

If you want useful advice, you will need to provide more information -

How much do you have in savings?

How much does your wife have in savings?

Where are these savings kept? iSA?

How much do you earn before tax?

How much does your wife earn before tax?

masonic

The closest to a standard process there is is to prioritise the accounts with the highest after-tax rates. Since you've not given the information, I'm going to assume you both have a £1000 personal savings allowance and somewhere in the ballpark of £40k savings between you, so you can arrange it such that neither of you would pay any tax.

Pick as many regular saver accounts as you can cope with paying 7-8% on a monthly payment. Each get a Santander Edge Saver paying 6% on £4k (requires a current account that you do not need to use and incur a fee for) and a Cahoot Sunny Day Saver paying 5% on £3k. Put the rest in either a flexible easy access cash ISA or other savings account and use this to feed the regular savers.

That will generate about two orders of magnitude more interest than you are used to getting.

wmb194

https://forums.moneysavingexpert.com/discussion/6678294/savings-help

https://moneyfactscompare.co.uk/savings-accounts/

DRS1

Is it right the best way is to open a fixed rate for my ten and pay interest monthly.

With my wife is it okay she opens a 20k isa and puts rest in a fixed account? Again interest paid monthly so she can transfer it out?

May I ask why you want monthly interest? And why you want to "transfer it out"?

Are you going to be spending the interest each month?

If you look at products which pay interest either annually or monthly you will find that the annual version has a gross rate and an AER which are the same but the monthly version will have an AER which is the same as the annual version but a gross rate which is lower. The two products are only equal in terms of interest if the monthly interest paid is rolled up within the product so you earn interest on the interest. If instead you take the monthly interest and spend it then you actually get less interest overall than with the annual version (of course with the annual version you won't have been spending the interest if that is what you want to do).