Need a new savings account! Any advice?

katy-lou

I currently have the one bank account. Its a Natwest savings account but I use it more of a current account with wages going in there and regularly taking money from it.

But I've decided I need to start saving a bit of money for a holiday or boob job or something


Anyways what the best one? The amount I'll be putting in will vary each month from say a minimum of £20 to a max of £150-£200.

Any to avoid?

Thanks

kingmonkey

Icesave Cash ISA

katy-lou

*bump*

I have no idea about ISA's so would prefer a bank or building society or something...

jem16

katy-lou wrote: »

*bump*

I have no idea about ISA's so would prefer a bank or building society or something...

ISA means Individual Savings Account and the providers, just like any other savings accounts, are banks or building socities.

The benefit of ISAs is that they are tax-free savings so you get all your interest without any tax being deducted. If you are a basic rate taxpayer you lose 20% of your interest to the taxman. If you are a higher rate taxpayer you will lose 40% of that interest.

If you are a taxpayer(which I'm assuming you are as you mention wages) you should be looking to utilise your ISA allowance before anything else. At the moment you are allowed to pay in £3000 in each tax year. From April this will rise to £3600.