new saver

lil_lady_2

ok im about to but my whole months wages into savings and just live of are tax credits and other halfs wage so ill be litrally halving are monthly income should i go straight for it or shall i take a little out just incase? are rent isnt very much .

Rafter

If you can afford to save all your wages, are you sure you are entitled to all the tax credits you are getting?

You should check with the tax office that your partners income means that you aren't paying enough tax.

If you are worried about putting all your money into savings why not get a savings account with an ATM card so you can get at the money if you do need it and your budget doesn't go as far as you think?

Good luck

R.

maypole

Instead of putting all your money into savings that you might have to withdraw sometime, why not set up a regular savings account so that a regular amount of money is put away every month that you won't need to touch.
Surprising how quickly it builds up and if it's money you don't need for day to day living you won't miss it.

martinman3

It is important to realise that if you put your savings in a taxable account then you will need to declare the interest on it when the tax credits are recalculated.

However, if you put it in a tax free account the interest is not taken into account, see this thread for more info on this subject
http://forums.moneysavingexpert.com/showthread.html?t=736595

If you think that you will need it sooner rather than later then a instant access mini cash ISA would better but be aware that you cannot add more than the subscription limit in a tax year even if you later withdraw some.

lil_lady_2

Rafter wrote: »

If you can afford to save all your wages, are you sure you are entitled to all the tax credits you are getting?

You should check with the tax office that your partners income means that you aren't paying enough tax.

If you are worried about putting all your money into savings why not get a savings account with an ATM card so you can get at the money if you do need it and your budget doesn't go as far as you think?

Good luck

R.

yes we have checked and they sent us a lump sum beacouse i hadnt applied eariler and i was entitled to more and probably lost out on quite abit apperntly.

maypole

Then if it is money to spare, I would open a mini cash ISA for this year if you don't already have one and then in April, the new tax year, you can open another one, no tax to pay at all on an ISA.