Savings Accounts

DizzyGherkin

Hi Everyone

I have recently been lucky enough to receive a substantial inheritance and am now wondering what to do with it. I obviously want to make the most of it and put it to as good use as possible..

Firstly, I'll be paying off any outstanding debts that I have...which is the most important thing.

Next I think I will set up a cash ISA, but I can only put £3600 into it (I know I can build it up year over year). However this leave me with lot of money that I feel would be best in a savings account.

Now this is where I need all your help! I've been looking around at all the differnent savings accounts around and it's all so confusing! I ideally want an account that pays high interest, but something that I can dip into in an emergency...however I'm not so sure I want an instant access as this might give me too much temptation to use it and then be left with nothing!

Can anyone give me some good advice on some decent saving accounts out there?


Thanks

Lokolo

Fixed rate I would assume?

http://icesave.co.uk/fixed-rate-savings.html

Nice 7.01% there (but before tax) with minimum of £1000 deposit. This is for a 1 year term. But obviously you would lose out on interest (not sure, but usually with fixed) if you took the money out.

Or you can go variable with Kaupthing

http://www.kaupthingedge.co.uk/OurProducts/KaupthingEdgeSavingsAccount.aspx

Which is 6.5% before tax, variable, at least 0.30% above base rate.

wooders

What would he lose say on £3000 in tax? with the 7.01% v 6.5%

Lokolo

20% = 0.8
40% = 0.6

Depending on your income tax band, *'s the percentage. So for 20% tax rate

7.01% --> 5.608%
6.5% --> 5.2%

They are the actual savings rates after tax, so just times that by £3000

Konisberg

Not sure if you can take your money out of an Icesave Fixed account, so you must be prepared to be without it for the term.