Best savings account?

413x said:
That's pretty good!
I put in 4k into a 3 year in December thinking 4.75 was high as it was gonna go!
Now I can't have anything else that finishes that year as I thought the interest was annually paid and I'll be into paying tax! Derp!
I believe anyway.
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Unless you've topped it up, or have other savings, the interest should be quite short of 500/1000 allowances?

At 4k that's about 190 a year. By year 3 that's probably only 210 ish.
 
Semple said:
Unless you've topped it up, or have other savings, the interest should be quite short of 500/1000 allowances?

At 4k that's about 190 a year. By year 3 that's probably only 210 ish.
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Yeah sorry. I wasn't sure if the interest got dumped all in obe go in year 3.

I just checked and they confirmed it gets added yearly so yes I won't bump into any issue.

Although it does mean I can't get that chip account.

As I have 2 regular savers and this bond.
Lloyds = 135 interest (400ppm at 5.25pc)
First direct = 135 (300ppm at 7.00pc)
Nationwide bond = 200

So I only have 30 quid left!
 
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Just read I need to multiply cash isa rate by 1.66 to compare it to non isa accounts.

So looks like I need to get an easy access isa account. Best around is 4.0 And that compares to a 6.6pc non isa, I which isn't available.
 
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BigT said:
On a calculator have this calculation in mind. Interest receivable tax allowance divided by the interest rate you're getting. This tells you the maximum you should have in your savings accounts that aren't sheltered from tax.

Example: You have funds in an account that pays 3.8% interest. Your allowance of interest earned before paying tax is £1,000 and on a calculator you express a % as a fraction by dividing it by a hundred if you're not comfortable using a % button. So in this example 1000 / 0.038 = £26,318, that's the maximum you should keep in those regular savings accounts. Any more and you'll pay tax on additional interest received beyond £1,000

Of course it isn't quite that simple because any interest you earn is added to your savings every month most likely, the interest rates will not remain static for the whole year (April - April) and it's harder to be precise if you have it in multiple accounts paying different interest levels. But it is an easy bit of math to understand if you're going to be close to the limit of needing to pay tax.

Unless there's a big disparity between interest received between non-ISA and ISA options, as can be the case, in general maxing out your ISA allowance is just a smart thing to do - it's protected from tax now and forever more. Although not quite as straight forward as moving money between bank accounts, it's still perfectly possible to move ISAs around between providers annually (or whatever period you lock in) in future years to get better deals too.
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This is great info thank you

It helps that the chase rate will soon match that so your example actually matches my situation

Also I'm a few months off and as the tax year has already started at lower rates it's not going to be an issue this year which is great because I all I need to do is keep an eye on the rate increases for now and worry about ISAs next year
 
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413x said:
Yeah sorry. I wasn't sure if the interest got dumped all in obe go in year 3.

I just checked and they confirmed it gets added yearly so yes I won't bump into any issue.

Although it does mean I can't get that chip account.

As I have 2 regular savers and this bond.
Lloyds = 135 interest (400ppm at 5.25pc)
First direct = 135 (300ppm at 7.00pc)
Nationwide bond = 200

So I only have 30 quid left!
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I think they always have to drop the interest either monthly, or yearly - normally the account anniversary.

But yeah sounds like you're close to your limit so any further savings will have to go into an ISA - unless of course you don't mind paying tax on it :p
 
Semple said:
I think they always have to drop the interest either monthly, or yearly - normally the account anniversary.

But yeah sounds like you're close to your limit so any further savings will have to go into an ISA - unless of course you don't mind paying tax on it :p
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Its not the paying of tax. It's more the complexity of having to add it all up vs just saying "I'm under 500".


I might Bump the ISA limit too. Ugh. This higher rate salary and high interest environment is new to me.
Not sure it's worth burning my isa for money I will need in 8 months time
 
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Just got an email from ii that they have increased the interest paid on cash balances in their ISA and normal trading accounts.

up to 10k 2.25%
10k to 100k 2.5%
over 100K 3.5%

Better than the banks instant access savings accounts.
 
413x said:
What's best easy access isa? Looking to put money somewhere for. 6-8 months and can't use easy access?
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This is the site I use first to track rates

Savings Champion

Want the best savings rate... forever? Savings Champion - whole of market best buys, Rate Tracker, and details of all savings accounts, including closed accounts.
savingschampion.co.uk savingschampion.co.uk
 
Relentless81 said:
Yeah but I don't know anymore than that so best to read the fine print on what happens if you withdraw it all, I'm still learning it all but thought I'd mention it because I read it literally minutes before you posted
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Yeah absolutely don't want to have it locked in a year by accident or something like that
 
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