savings options???

kirstyb_2

Hi, I am a complete novice to saving, but would like to start saving about £50 a month. Can someone please tell me if I would be better off with an ISA or with one of the new 7% interest accounts (eg Halifax)?

Robert_Sterling_3

This is a close call but for simplicity sake 7% taxable is 5.6% after 20% tax and 4.2% after 40% tax whereas if you pay no tax on it anyway it would remain 7%.

A minicash ISA is tax free and in the long run is probably a better bet.

By a small margin I would suggest you get a mini cash ISA.

deemy2004

Hi, I am a complete novice to saving, but would like to start saving about £50 a month.  Can someone please tell me if I would be better off with an ISA or with one of the new 7% interest accounts (eg Halifax)?

Hi you don't say if your a tax payer ? If your earning less than £4.8k per year gross ?

If you are than the monthly savers offer a great rate. If your a tax payer than you may want to ensure you use up your cash-isa allowances first.

kirstyb_2

Thanks for the advice. I have recently drastically cut my working hours as I am now studying part time. So taking this into account I am probably best with a regular savers account. Thanks again, KirstyB.

Robert_Sterling_3

You are welcome.
I hope that you get what you deserve from your further studies.

Fast_Track_UK

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