Putting away a large lump of money
Discussion
Not for me but the family.
looking at putting away 20-50k
I don't, they don't internet back. still old fashioned so would rather use cheques and post than going transfers from A pc.
Suggestion on places to save larger amount without tying up for more than 2 years while getting a good intrest rates? Seem's most of the high street banks want to screw you over at the moment as per normal.
Also can anyone simplify how much you can have in a bank that is protected. IE if you had 80k in a bank you can only guarantee 50K?
looking at putting away 20-50k
I don't, they don't internet back. still old fashioned so would rather use cheques and post than going transfers from A pc.
Suggestion on places to save larger amount without tying up for more than 2 years while getting a good intrest rates? Seem's most of the high street banks want to screw you over at the moment as per normal.
Also can anyone simplify how much you can have in a bank that is protected. IE if you had 80k in a bank you can only guarantee 50K?
Yeah 50k max.
There are 4.2% 2 year fix rate deals on at the mo,
But Id be tempted to drop the max amount into a fixed term ISA at the same rate as well.
You can find some high interest cash accounts with A&L etc, maybe ready to max out your ISA again in 2010.
The balance into a 2 year fix.
Can you swap pension savings around and dump all the 50k into a SIPP or similar and wipe off most/all of your annual tax liability and then redeploy your pension savings into a high interest account instead. That will save you mega.
Basically you want to shuffle things around to reduce interest paid and maximise interest earnt.
Have you got a mortgage, credit cards or loans etc? Im guessing not? If so, consider getting rid of them. Paying down mortgage at 3% is equiv to 3% tax free.
There are 4.2% 2 year fix rate deals on at the mo,
But Id be tempted to drop the max amount into a fixed term ISA at the same rate as well.
You can find some high interest cash accounts with A&L etc, maybe ready to max out your ISA again in 2010.
The balance into a 2 year fix.
Can you swap pension savings around and dump all the 50k into a SIPP or similar and wipe off most/all of your annual tax liability and then redeploy your pension savings into a high interest account instead. That will save you mega.
Basically you want to shuffle things around to reduce interest paid and maximise interest earnt.
Have you got a mortgage, credit cards or loans etc? Im guessing not? If so, consider getting rid of them. Paying down mortgage at 3% is equiv to 3% tax free.
ringram said:
Yeah 50k max.
There are 4.2% 2 year fix rate deals on at the mo,
But Id be tempted to drop the max amount into a fixed term ISA at the same rate as well.
You can find some high interest cash accounts with A&L etc, maybe ready to max out your ISA again in 2010.
The balance into a 2 year fix.
Can you swap pension savings around and dump all the 50k into a SIPP or similar and wipe off most/all of your annual tax liability and then redeploy your pension savings into a high interest account instead. That will save you mega.
Basically you want to shuffle things around to reduce interest paid and maximise interest earnt.
Have you got a mortgage, credit cards or loans etc? Im guessing not? If so, consider getting rid of them. Paying down mortgage at 3% is equiv to 3% tax free.
very intresting reading and thanks for the info. As for having and loan's, Mortgage's etc.. thats a No. intresting to find out more about the SIPP and savings etc.. seem's different from what I know (which is very little)There are 4.2% 2 year fix rate deals on at the mo,
But Id be tempted to drop the max amount into a fixed term ISA at the same rate as well.
You can find some high interest cash accounts with A&L etc, maybe ready to max out your ISA again in 2010.
The balance into a 2 year fix.
Can you swap pension savings around and dump all the 50k into a SIPP or similar and wipe off most/all of your annual tax liability and then redeploy your pension savings into a high interest account instead. That will save you mega.
Basically you want to shuffle things around to reduce interest paid and maximise interest earnt.
Have you got a mortgage, credit cards or loans etc? Im guessing not? If so, consider getting rid of them. Paying down mortgage at 3% is equiv to 3% tax free.
ringram said:
Can you swap pension savings around and dump all the 50k into a SIPP or similar and wipe off most/all of your annual tax liability and then redeploy your pension savings into a high interest account instead. That will save you mega.
That sounds very interesting - can you explain more?Depends if you currenty contribute to a pension. Basically Im suggesting you temporarily reduce you pension contributions. Being careful that it doesnt cause you issues increasing them again in the future.
So you then dump as much of the lump sum into your pension now and get up to 40% tax back from it. Then with whats reminaing or your now freed up contributions put them into a high interest account so that after the time period you are back to square 1. Ultimately it doesnt really mater as your pension contributions will be tax free anyway, but you will get 2 years to set your lump sum tax rebate to work for you.
Every little bit helps. (ie) take the tax rebate now instead of over time and repay your lump sum with your time based payments.
Not sure if that makes sense, hopefully it does.
So you then dump as much of the lump sum into your pension now and get up to 40% tax back from it. Then with whats reminaing or your now freed up contributions put them into a high interest account so that after the time period you are back to square 1. Ultimately it doesnt really mater as your pension contributions will be tax free anyway, but you will get 2 years to set your lump sum tax rebate to work for you.
Every little bit helps. (ie) take the tax rebate now instead of over time and repay your lump sum with your time based payments.
Not sure if that makes sense, hopefully it does.
Gassing Station | Finance | Top of Page | What's New | My Stuff