1000 pounds- where do i put it??

hannahsmummy1

I have just had a nice tax rebate of 1300 pounds, and i hace decided to put 1000 away. Im really new to savings!! I currently have a lloyds tsb online saver, but its not a great rate! I want to put 10 a week into any savings account with the 1000, (i get paid weekly) and i dont want it to be instantly accessible (im determined NOT to spend it!) Does anyone have any ideas what would be best?? Thanks in advance!

hannahsmummy1

bumping for anyone to help??

dancingfairy

I would consider a cash ISA - these are basically savings accounts but you get all the interest as opposed to the tax man taking his share of the interest. You can put in up to £3000 this tax year and from then forward you will be able to put in slightly more a year - I think it is £3600? Have a look at Martins article as it will link to the current best buys. Some of them you will be able to access and some will have 30 days notice or are 1 year accounts where you can't get your money for a year. Have a look around. The only issue I can see is that some fixed rate isa's won't let you take your money out (which is what you want) but won't let you add to it either.
Once you have your money in an ISA you get the interest tax free every year. If you are not a taxpayer they are still worth considering as they seem to be paying good rates compared to the other accounts.
You could earn about £625 interst on it in a year so a nice little present from the tax man there. Wish I could get my tax rebate - I just have to be patient.

Lokolo

Account number: 12345678
Sortcode: 11-12-43
Name: Mr J Smith

I would quite happily have the money...

However, on a serious note, I am assuming you pay tax from your work? If so I would go along to a bank next week and open a ISA. There are plenty of threads around with different ISAs in.

If you really are determined not to spend it then its all good. Interest is calculated daily in banks so if you start taking out, you will get less interest (booooo!)

Hope that helps,

n.b. that isn't actually me :P

MrDT

dancingfairy wrote: »

You could earn about £625 interst on it in a year.

Say what now? There are accounts offering 62.5%apr!? :rotfl:

redrabbit29

MrDT wrote: »

Say what now? There are accounts offering 62.5%apr!? :rotfl:

I'll toast that rate! :beer: