Best savings account?

ci_newman · 17 Nov 2023 at 15:59

413x said:
I doubt mine are flexible.

Its tricky to estimate as I don't really know how performance of a vanguard ETF compares to my company pension Options.

I don't know how much bonus I get each year.

This is is the first tax year I've been over 50k. But I could end up 10k over or more.

(my base salary jumped from low 40s to 55 with a bonus on top).
Add in this year I got some extra too

I could increase my contributions, but tbh. I'd rather do the lump sum. Not sure what the NI +/- works out to.

That's basically it right? How does the NI saving or loss compare to the performance of vanguard vs aviva options?

As I'm not on mega wage I doubt it matters too much?

Very very rough figures.

Assuming you earn £60k and make no deductions for pension, standard tax code etc - NI contributions are £4,718.60 for the year

However if you salary sacrificed down to £50k, NI contributions are £4,491.60

So an effective difference of £227 annually on those £10k savings / pension that's in your pocket instead of the Government.

If you earnt £60k and did a lump sump deposit at the end of the year into your pension, you still cannot reclaim those NI contributions.

I'm not entirely sure why you are focused on the Vanguard / Aviva stuff. My pension is invested in the Vanguard FTSE Global all-cap as that is one of the funds my pension provider (Aegon) offers.

413x · 17 Nov 2023 at 16:15

ci_newman said:
Very very rough figures.

Assuming you earn £60k and make no deductions for pension, standard tax code etc - NI contributions are £4,718.60 for the year

However if you salary sacrificed down to £50k, NI contributions are £4,491.60

So an effective difference of £227 annually on those £10k savings / pension that's in your pocket instead of the Government.

If you earnt £60k and did a lump sump deposit at the end of the year into your pension, you still cannot reclaim those NI contributions.

I'm not entirely sure why you are focused on the Vanguard / Aviva stuff. My pension is invested in the Vanguard FTSE Global all-cap as that is one of the funds my pension provider (Aegon) offers.

Thanks. I will check on aviva if it offers those ETFs. Or anything similar.

Looks like vanguard fees are low.

Again I will look.
Great job to do over Christmas!

ddoubleep · 17 Nov 2023 at 16:21

Mine only gives me access to this https://www.tpinvestor.com/portfolios and thus no Vanguard

413x · 17 Nov 2023 at 16:46

Had a look. I think aviva has access to some at least if the vanguard etfs. Will look further

slinxy · 17 Nov 2023 at 18:32

I've just done some sums... my savings rate is currently 5.15% and my current ISA rate is 2.65%.
There is no amount where I'm better of having cash in my ISA rather it all in my savers and paying the tax on the interest..

The downside is when the rates on the saving drop below the ISA rates and you have to try and put the cash back into an ISA.

413x · 17 Nov 2023 at 18:41

slinxy said:
I've just done some sums... my savings rate is currently 5.15% and my current ISA rate is 2.65%.
There is no amount where I'm better of having cash in my ISA rather it all in my savers and paying the tax on the interest..

The downside is when the rates on the saving drop below the ISA rates and you have to try and put the cash back into an ISA.

Ugh. Is that your one isa for the year?

I really need access to my short term savings. Would love to open a 3 year cash isa now. But they all require you to lock away immediately.

By time I can use one I suspect rates will have dropped.

slinxy · 17 Nov 2023 at 18:50

413x said:
Ugh. Is that your one isa for the year?

I really need access to my short term savings. Would love to open a 3 year cash isa now. But they all require you to lock away immediately.

By time I can use one I suspect rates will have dropped.

Yes, I have a cash isa and stocks and shares isa but I can only put 20k max for both.

Depending on your age and situation, you may want to look into a LISA and get the 20% tax back from the amount you put in. Thou it's locked away till you buy your first house or get married and you lose the 20% tax back (I think).. unless you wait until you retire. Not many companys ofter them thou.

200sols · 17 Nov 2023 at 19:14

ddoubleep said:
Any pointers or places to look this up?

What do you want to know?

Prices have risen or conversely yields have fallen recently but still attractive for higher taxpayers.

TonTom · 17 Nov 2023 at 19:58

Anyone know which is the highest interest rate account to stick a large amount in which pays monthly interest?

Macro · 17 Nov 2023 at 20:01

Define "large amount" and do you have any ISA allowance left this FY?

TonTom · 17 Nov 2023 at 20:19

Around £100k I suppose to be on the safe side two different accounts to be covered by FSCS. No ISA have been used.

Thanks

Disco_P · 18 Nov 2023 at 09:08

slinxy said:
I've just done some sums... my savings rate is currently 5.15% and my current ISA rate is 2.65%.
There is no amount where I'm better of having cash in my ISA rather it all in my savers and paying the tax on the interest..

The downside is when the rates on the saving drop below the ISA rates and you have to try and put the cash back into an ISA.

Switch into to a 5% isa?

dlockers · 18 Nov 2023 at 10:57

TonTom said:
Around £100k I suppose to be on the safe side two different accounts to be covered by FSCS. No ISA have been used.

Thanks

You may want way more than 2. For a start 20k into a tax free isa. Can you use your partners 20k tax free isa too?

TonTom · 18 Nov 2023 at 13:56

dlockers said:
You may want way more than 2. For a start 20k into a tax free isa. Can you use your partners 20k tax free isa too?

I only have my ISA unused unfortunately.

Open to any amount of accounts that’s not an issue.

I would like some options for best/highest interest accounts with access to and also fixed term. Plus ISA as well. I’ve simply not kept up with various accounts over the years due to the poor interest so any help is greatly appreciated.

Azza · 21 Nov 2023 at 10:05

Opened a Marcus account.

Didn't recieve a text otp so tapped on 'resend' and it said the number it would be sending to was 'xxx-xxx-null'.

And now they've locked my account.

Good job I only initially transferred £1.

unwashed potato! · 21 Nov 2023 at 14:03

dlockers said:
20k into a tax free isa

What is the good rate in a tax free isa? I've got almost 40k in marcus, however thst rate is only 4.6 percent. Seems it's not the highest like it used to be when I first opened the account.

dlockers · 21 Nov 2023 at 14:13

unwashed potato! said:
What is the good rate in a tax free isa? I've got almost 40k in marcus, however thst rate is only 4.6 percent. Seems it's not the highest like it used to be when I first opened the account.

Probably not far off that tbh. The main benefit is if you are exceeding your £1k or £500 a year interest allowance and therefore paying tax on the interest.

If you've got £40k and not touching it I imagine you are well past the allowance?

Metro offer 5.71% IIRC.

mattyfez · 21 Nov 2023 at 19:55

I looked at the metro account on MSE and it popped up with a warning.. I think that was a 1yr fix account though, not an ISA

200sols · 21 Nov 2023 at 20:07

Metro are fscs protected, they've had a few issues but your money is protected so not sure why MSE insist on warning people.

dlockers · 21 Nov 2023 at 21:24

200sols said:
Metro are fscs protected, they've had a few issues but your money is protected so not sure why MSE insist on warning people.

I agree its protected but does seem a bit off to go with a basically failing bank. Probably a right faff to get your cash back too.