What's the best way for a student to save?

wellimustbedead

Hi, I am trying to find the best way to save £10,000 over the next 12 months. The person who I am trying to help is currently a student and will be for the full period so I was wondering if there are any ways to maximise the tax-free savings or would she still need to open an ISA? I've been looking at the article for regular savers and also wondered if you could have more than one running with different providors at any one time, and also if her being a student would allow her to stop paying tax on these too. I know there's a lot there, but any help would be great. Thanks

emma396

student with an income of more than £5,435 a year? if not they will not have to pay tax, so would not necessarily need an ISA, could use normal savings accounts.
with regards to regular savers, you can have as many as you want as long as you qualify for them and the bank will open it for you.

chesky369

If the student is not paying tax then you should also ask the bank to send you a form so that she doesn't pay tax on the savings interest.

HC_2

This is quite a nice one:

http://www.northernrock.co.uk/savings/online-savings/

I opened one for my teenager recently. Easy to set up, easy access, online management, not a bad rate.

Make sure he completes an R40 so he gets interest gross.

Might be ISAs with a slightly better rate if you look around.

marshall2k

Completing an R85 will mean that tax isn't taken off in the first place.

HC_2

marshall2k wrote: »

Completing an R85 will mean that tax isn't taken off in the first place.

Quite right. I was 45 out. Maths was never my strong point.

marshall2k

Well I guess an R40 would work but take a bit of time!

HC_2

I was sure I completed an R40 on behalf of my daughter, and it would have given her gross interest. But perhaps it was indeed an R85, since that does seem to be the correct form. In which case, God only knows where I got R40 from!

Amyea

Hi

I am also filling in one of these R40's in order to claim back the interest on my savings. My question is: the savings amount that i have is very high and therefore i have a lot of interest to claim back. Will i get penalised in any way as i assume by the figures i enter on the form the tax office will know how much i have in the bank.

This is particularly important as i am a mature student but i am claiming loans and busarys to pay for University. As i have been living at home until i moved to Uni the forms asked that i only write down my parents income as i did not support myself. I'm just worried that the two things are connected and in some way they will say i am not entitled to my loan beause i have savings.

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