Locking Bar Eglu Classic

[Guest]

can anyone give me some advice on a savings scheme/account please? I find it all so confusing!

 

we have a lump sum of about £9000 to invest. we want to be able to access it instantly in case of an emergency but are aiming to leave it invested for 12 months.

 

I've been browsing moneysupermarket.com and it looks like a santander flexible isa might be our best bet. pays 3.20% aer.

 

does anyone know if there's anything with a better rate out there?

 

thanks in advance.

[Chucky Mama]

I'll look after it for you

[abwsco]

Have you asked on Money Saving Expert

[Guest]

Have you asked on Money Saving Expert

 

no, didn't think about that, thanks!

[Cinnamon]

There was an article in the Mail last week about the best ISAs to try & I know that my one,the M&S instant access one,was one of their recommended ones.

 

HERE YOU GO

 

 

Hope that is useful

 

That said,Poet,you don't work do you?

So you wouldn't pay tax on your interest,if you fill out that form (I may be wrong here???), so you may be better off with a savings account,giving up to 5%?

Oh, and look at internet accounts,as they generally give a better rate.

[TAJ]

The Santander deal - you need to look at the small print - yes it is that rate for 12 months then automatically goes into another account that has a current rate of under 1%. Looking at advice this morning on the telly the M&S one also came out well - a flexible instant access rate or higher fixed rates for 1-3 years (i.e. 4% for 3 years). http://money.marksandspencer.com/save-invest/cash-isa/overview/

 

Also remember the annual cash ISA limit is £3,600 or £5,100 if over 50 yrs old. If you apply online to M&S now it can still be processed for the 2009-10 tax year which ends 5th April 2010 (many accounts are already closed for 2009-10 isa applications). If you do this come 6th April 2010 you can then add another £3,600 (or £5,100) to the account using your 2010-11 isa allowance.

 

I have gone for an M&S fixed rate for 3 years at 4% today - they write to you as it is coming to an end giving you options of what to do at the end - last last ISA we had with Santander very quietly went into an isa at 0.1% at the end of the deal period and it took a few months of no interest before we found out.

 

So only go for Santander if you are then in 11 months time actively looking for where to transfer the money to.

 

Tracy

[Guest]

no i don't work but hubbie does, not sure if his income makes any difference? It certainly does when it comes to benefits etc.

 

I think i might make an appt with our bank and get some advice. I know they'll try and sell us their products but at least we'll have a better idea whether to put it in my name, his or joint names etc and which one of us would get more interest etc. Then we can use that advice to help us choose where to put the money

 

thanks for the advice so far peeps, lot of thinking to do!

[Cinnamon]

We have some savings in just my name,so that I don't pay tax on the interest

It might be worth thinking about,or even splitting it in half,& putting some in one account,some in another.

 

Personally,I could do a lot of dmage to £9000 in very little time indeed

 

I agree with TAJ that M&S Money are very up front about their accounts, & I have been really happy with them.In fact I now also have my household insurance,gas,electricity & mastercard with them too.

[Guest]

..,

Personally,I could do a lot of dmage to £9000 in very little time indeed

 

....

 

don't encpurage me! we've sold the camper van to get rid of some debts and have a bit left over, I could easily spend it but we need a buffer for emergencies so it's definitely being saved!

[abwsco]

Don't forget to chcek out Quidco as there could be cash back on opening an account.

[Charlottechicken]

That said,Poet,you don't work do you?

So you wouldn't pay tax on your interest,if you fill out that form (I may be wrong here???), so you may be better off with a savings account,giving up to 5%?

Oh, and look at internet accounts,as they generally give a better rate.

 

Good point Cinnamon

 

Wouldn't touch Santander with a bargepole though, they used to be Abbey, good at losing stuff and messing things about.

[TAJ]

ISA's relate to your payment of tax, so you cannot actually have a joint isa, but from what you are saying savings in your name could be tax free - they would still have to be declared for tax purpose and would then count as 'income' related to you so that might impact on benefits?

 

Certainly you couldn't just put £9,000 in an isa in 1 year - if you do go down the cash isa root you would need to open one in each name and use you 2009/10 & 2010/11 allowances to do this so would need to move fast - online with M&S I think you have until 5th April - the programme I was watching this morning said that some comapnies were already closed or effectively closed as you cannot get an appointment before the deadline had past.

 

Good luck.

 

Tracy

[Christian]

OH recommends a cash ISA too. He says the rate isn't great at the moment, but at least you have instant access.

[yvonne]

If you have no other income, you will be able to use your tax allowance on your savings which should more than cover any interest you might get on £9k if you do it in your own name (OH income is irrelevent, he has his own tax-free allowance). ISA's are great for taxpayers, esp 40% ones, but often do not pay the best interest rate, so if you don't pay tax anyway, they are not necessarily the best bet.

A chat to your bank can't hurt, but don't feel pressured to use their products, take away some leaflets and go back when you are happy you've thought it through.

I would check out moneysupermarket.com which is a good comparison website- beware many accounts drop their rates (so keep checking the rate is OK when the money is invested) but you can get some with a decent bonus for the first year etc.

If you are definately happy to lock it away for a year, you can probably get over 3%, but everything is pretty low these days. (For instant access, I'm struggling to get 3% at the moment)

There are also National Savings accounts and bonds which pay gross and therefore take away the hassle of getting the tax back as you seem to be a non-taxpayer.

Good Luck with finding something which meets your needs

[yvonne]

Sorry, just noticed you've already looked on moneysupermarket - ooops !

[debbier]

no i don't work but hubbie does, not sure if his income makes any difference? It certainly does when it comes to benefits etc.

 

I think i might make an appt with our bank and get some advice. I know they'll try and sell us their products but at least we'll have a better idea whether to put it in my name, his or joint names etc and which one of us would get more interest etc. Then we can use that advice to help us choose where to put the money

 

 

If you are below the income tax threshold, then you won't be eligible for tax on your normal savings, if it is in your name only. I have all our savings for that very reason. Make sure you fill out an R85 form, or the savings will be taxed at source.

 

I do have ISAs, too. They aren't always lower interest rates: it pays to shop around.

[docsquid]

Certainly you couldn't just put £9,000 in an isa in 1 year

 

You can put £10k in an ISA if you are over 50 in a single year.

 

If you are a non taxpayer it is worth looking at National Savings and Investments as there are some investments that pay interest gross, and some, like Premium Bonds, that are tax free.

[debbier]

 

You can put £10k in an ISA if you are over 50 in a single year.

 

As from the 2010-2011 tax year it's 10,200 for everyone eligible for an ISA, not just over 50s. However, you can't put more than half of that in a cash ISA in one year.

[Goosey Lucy]

On a different thought, how about Premium Bonds? You never know, you might just win big

[TAJ]

Certainly you couldn't just put £9,000 in an isa in 1 year

 

You can put £10k in an ISA if you are over 50 in a single year.

 

If you are a non taxpayer it is worth looking at National Savings and Investments as there are some investments that pay interest gross, and some, like Premium Bonds, that are tax free.

 

but not all in cash the total isa allowance and cash isa allowances are different, over 50 = £5,100 as a cash isa, the rest of the annual allowance can only be used for an investment isa.

 

Tracy

[Cinnamon]

I do believe that Martin Lewis recommends any substantial savings be used to pay off part of your mortgage before they are saved anywhere, unless you are lucky enough not to have one?

 

You certainly should get a better return on the money that way,by reducing your mortgage payments,although it is nice (I would imagine it is anyhow!) to have a financial buffer,in case of emergencies.

We keep a couple of thousand to hand ,any more than that (as if!!!), would be paid of the mortgage first & foremost.

[yvonne]

Good point Cinnamon,

If you have any borrowings, they are probably costing you more that the 3% you might get by saving, so best to pay off your most expensive debts first (assuming no early payment penalties, of course).

[debbier]

The original post did say that they wanted easy access to the money. I have a current account mortgage, so can pay it off as and when, and reborrow if needed. Not all mortgages are quite so fliexible, though.

 

As for premium bonds: I do have some myself, but consider it a bit like gambling with the interest I would have received. It is still gambling, though!

[TAJ]

I do believe that Martin Lewis recommends any substantial savings be used to pay off part of your mortgage before they are saved anywhere, unless you are lucky enough not to have one?

 

You certainly should get a better return on the money that way,by reducing your mortgage payments,although it is nice (I would imagine it is anyhow!) to have a financial buffer,in case of emergencies.

We keep a couple of thousand to hand ,any more than that (as if!!!), would be paid of the mortgage first & foremost.

 

Just check you mortgage rates first - currently I am only paying 1% (tracker arranged before the financial crisis so good deal!) so whilst borrowing is normally higher % than savings % it is not always the case.

 

Tracy

[Cinnamon]

The original post did say that they wanted easy access to the money.

 

Maybe not to all of it though - that was what I was getting at