Where to save?

firefox26

Hey Guys,

Ive had a letter come from my university today informing me that im getting a £500 bursary soon. I already have a student acc with halifax and i have an online saver with HSBC. Im looking to invest somewhere where i could make a decent bit of interest.

I was thinking of a fixed term deposit account but i dont know if this would suit, or is the HSBC account good enough?

Thanks for all advice in advance

Alan

Steve_xx

You need to have an ISA really so as avoid paying tax on your interest.

firefox26

Im tax exempt at the moment anyway mate, Uni student

Steve_xx

Ah yes, but you wont always remain tax exempt, whereas your ISA will!

Mikeyorks

firefox26 wrote: »

or is the HSBC account good enough?

Depends on the interest rate (?) .... and when you need access to the £500. A fixed term account is normally for at least 6 months .. up to a couple of years. And some need a minimum of at least £1k.

Click the Moneysupermarket link in the headings above your post. then uncheck the Easy Access box and check the Bonds or Term Accounts box - insert £500 ..... and see if the results better your HSBC by enough to warrant opening another account?

Also check you've got an R85 filed on any of your accounts earning interest (provided your total earned income + gross interest next year is £5345 or less)