Where will i get best return?

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shazk85
shazk85 Posts: 34 Forumite
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in Savings & investments
Have £13k to invest best place for interest but will need money out next October (2020)

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  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    The site has tables that tell you just that.

    https://www.moneysavingexpert.com/banking/?_ga=2.72228816.275609870.1546849397-1758910476.1532545841
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shazk85
    shazk85 Posts: 34 Forumite
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    Thanks but i have NO IDEA what im doing if it isnt a "normal" bank account basically i need to know is saving account, isa or another option best?
  • System
    System Posts: 178,093 Community Admin
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    Makes no difference over such a short term. Between the best interest rate and nothing the difference is going to be a couple of hundred quid and in the UK the first £1000 (£500 if higher rate income tax payer) is tax free.

    If you want to earn more you need to up the risk and go into the stock market but then that also comes with the risk of your money being worth less when you want it and that risk of loss being higher the shorter the term. Doing this is therefore something you need to consider over the long term, at least several years, in order to balance out the losses.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    Even if is "tax free", whatever that actually means, having taxable savings interest can increase your overall tax liability in a variety of situations.

    Without knowing more about the op's circumstances it is impossible to know if they even have sufficient income to use the £1,000 savings nil rate of tax (aka Personal Savings Allowance) or what impact this income might have.
  • shazk85
    shazk85 Posts: 34 Forumite
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    Hi see this is what i mean I am now totally LOST- basically if i put it ISA its tax free no matte what but if i put it in savings of any type ill pay tax (however that is demanded and paid?)
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    No.

    ISA's are tax exempt.

    Virtually all savings interest (NS&I have tax exempt accounts I think) is taxable. How much tax depends on your personal circumstances.

    Every one starts the tax year being able to have £18,500 taxable interest before any tax is payable. But wages, pension income etc and things like applying for Marriage Allowance reduces that for most people. But there are two 0% tax rates applicable to savings interest which might still be available even if your wage or pension uses some or all of your Personal Allowance.
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