Help! where to put my savings?

applecrumble21

Hi
I am being left about 5 grand inheritance. What is the best way to save this money and gain profit from interest?
Any suggestions?

Ian_W

Are you a taxpayer and have you used your cash ISA allowance for this tax year?
ISAs allow you to earn interest free of 20% savings tax deducted at source by the bank, if you're a taxpayer [or likely to become one in the foreseeable] they should be your first port of call.

applecrumble21

thanks for the reply
no i dont pay tax as im a student, i'm 18 next week and work part time. i dont know anything about ISA's and i have never saved before, i would be grateful for any help.
thanks

Ian_W

By the sound of it, it won't be too long before you are a taxpayer so have a read of Martin's article about CASH ISA's.
There is also a sub board for ISA's linked to this one and that is well worth reading particulaly the thread listing best cash ISAs which is kept up to date by kazza.
Your ISA allowance for cash is £3000pa for this tax year [ends 5/4/08] and it's then up to £3600pa from the next tax year.
ISA rates are as good as, sometimes better than, ordinary saving accounts and once you become a tax payer they shelter you from savings tax giving your returns a 20% boost because the interest is tax free.

Mikeyorks

applecrumble21 wrote: »

i would be grateful for any help.

Not enough detail about you;)

Pay off any debts first - then have a look at some of the Savings links directly above your first post. In particular this one :-

http://www.moneysavingexpert.com/savings/which-saving-account

.........then come back if you're not sorted!

jennifernil

Remember, being a student does not mean you are exempt from paying tax. Tax goes on income, so if you have a part time job, maybe work full time over the summer holidays, you could easily be over the personal allowance and be paying tax on some of your income.