Looking for the highest interest and lowest tax. Best found so far 5.1% with natwest child saver a/c. can anyone recommend anything better with a reputable provider?
2007-02-07 04:44:49 · 8 answers · asked by Nikita 4 in Business & Finance ➔ Personal Finance
It depends on whether or not you will be classed as a UK taxpayer while abroad and if so will you be taxed at the standard rate or the higher rate?
If you are/ will be a higher rate taxpayer you should look at investing the maximum allowed in Index Linked Certificates though this will lock your money in for 3 or 5 years I believe.
The interest rate is linked to the Retail Price Index (RPI) which last month reached 3.1%. The certificates pay the RPI + approx 1 to 2% AND no tax is payable on the interest. So the value of your savings is guaranteed not to be eroded by inflation. And they're guaranteed by the UK government - you can't get any safer (no comments on the current incumbents!)
The interest rate for a higher rate taxpayer is currently equivalent to over 9% in a normal savings account and around 6% for a standard rate taxpayer (because no tax payable on interest).
See the site below for excellent, impartial advice on everything money related - I have a keen interest in these matters and receive several free ezines every week - his is by far the best and more importantly IMPARTIAL - read his policy.
Martin's Money Tips [MartinsMoneyTips@moneysavingexpert.com]
Alternatively see back of Saturday/ Sunday Times money sections every week for "Best Buy" tables - though these should not be taken as "gospel" they do tend to be pretty good (I've checked other sources) and they often tell you if a provider is consistent with their rates (rather than giving a great headline or opening rate then dropping it a few months down the line).
2007-02-08 07:42:16 · answer #1 · answered by stevieR 1 · 0⤊ 0⤋
No doubt Premium bonds. The money is as safe as it can be and you have a great chance of winning cash prise. No long term commitment no chance of capital loss other than the six months inflation if you did not win a penny you can put in 30K. If you don't have an ISA account for this tax year put 3K into a cash Isa (post office) the remainder in a high interest account which you could access if really required.
2007-02-08 04:44:16 · answer #2 · answered by Jim G 3 · 0⤊ 0⤋
5.7% with Icesave at www.icesave.co.uk
The downside of the Alliance and Leicester account is that no interest is earned on the account balance in any month in which a withdrawal is made or the account is closed. This reduces the effective rate of interest.
2007-02-08 08:47:06 · answer #3 · answered by Peter D 1 · 0⤊ 0⤋
Put as much as you are allowed to into premium bonds. Then check with Abbey and Natwest. for the rest.
2007-02-07 12:52:13 · answer #4 · answered by R.E.M.E. 5 · 0⤊ 0⤋
I will look after it for you!!!
Seriously though if you have 50 grand then why not pay a bit for the advice of an Independent FA. They will help you get the best return for your money.
2007-02-08 06:54:36 · answer #5 · answered by Boo Boo 2 · 0⤊ 0⤋
Romania
2007-02-07 12:53:36 · answer #6 · answered by Mirgen P 1 · 0⤊ 0⤋
Alliance & Leicester 'Easy Access' A/c - 5.8% paid monthly.
2007-02-07 14:35:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋
In my bank account he he :)
2007-02-07 12:48:52 · answer #8 · answered by sbro 4 · 0⤊ 0⤋