What is the best type of regular savings for an additional tax payer?
I have already maxed my ISA.
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3ESpa postedAt the moment, the top regular savers that are open to everyone have a dismal interest rate of 4% and you can only put a max of around £200 or £250 per month.
It could be worth opening a firstdirect 1st Account, as you'll then be eligible for its Regular Saver with an interest of 8% (for one year only).
You can pay in up to £300 per month, but can't make any withdrawals during the year.
If you put in £200 per month for 12 months you'll earn £51.69 in interest (bearing in mind your additional tax rate) as opposed to £25.92, which you'd earn with an account giving 4% interest.
Hope that makes sense!
Ps. Nationwide customers can get a special rate of 6% with its Regular Saver.
On top of this, can I also just recommend OrSaveIt - an app that helps you to save money on-the-go. You won't earn interest but you'll probably end up saving more as it helps you to put away the little savings you make every day but normally forget about.
Posted on 27 September 2012 |
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878MikeGG1 posted
There are a number of short-term incentive schemes like First direct, trying to get you as a new customer.
The best Regular Saver that seems to to fairly permanent is the 12 month fixed rate of 4% from Principality where you can save up to £500 per month for 12 months and then start a new one. However, you do have to decide where to invest the proceeds at the end of the year, but with over £6,000 possibly you have a full range of bonds to choose from, or go for equities, or a mixture.
Mike
Posted on 28 September 2012 | Love 0 loves
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