To ask how you would split £27k? …

[bankingpanda]

… into two savings account?

1. ISA - max. I can put in there is £20k. It’s tax free. Interest rate 2.85% AER
2. Savings account. I believe no limit on what to put in there. I get taxed on this. Interest rate 4% AER

currently I have no money in either of these accounts (apart from the £1 I needed to put in there to open them)

I’m struggling to know what to do. Really want to put the money into savings account as so far it was just sitting in my bank account 🫣

I’ve instant access to both accounts if I need to, but I also I’m thinking of leaving about £3k in my standard bank account so I don’t need to touch savings at all.

thoughts?

Max out your ISA but find one with a better rate.

Very tone deaf right now

Premium bonds, it's a bit of fun for your money.

Was going to say the same. Get an ISA with a better rate

I am not any kind of expert on financial stuff but I believe you can get £1000 interest a year before you pay tax so just stick it all in any high rate interest account. If you think you’ll need it at various points you should consider how many withdrawals you can make.

It’s ok to have some money. OP is evidently not the CEO of Amazon or something.

Max out your ISA allowance first, but there should be better rates out there now.

What do you aim to do with it, do you need access, is it long term savings? What's your approach to risk?

There was another thread recently asking about investments.

A couple of other options:
Over pay mortgage
Pay into pension and claim pension relief.

Sorry don’t get the tone deaf comment 🫣😅

it’s just savings that I’ve saved over the last 10 years. I’ve been terrible with banking and had a basic bank account with no extras 🫣🫣🫣 so stupid.

anyhow I’m on it now and trying to make good decisions.

There is no plans for this money currently. Perhaps will go towards buying a house/flat.

if you won’t need the money for the foreseeable future go for stocks and shares ISA with a better rate.

check aj bell and vanguard.
I’d put 20k in and I do that now in 23/24 tax year.

then wait until April 24 and next tax year… put remaining 7k into your ISA using 24/24 allowance

You will be able to get a better rate on the savings depending. You only pay tax if you earn £1000 interest if you are a 20% tax payer.

You can get much better rates.

You will only pay interest if you earn over £1000 per year in interest.

Sorry don't get the tone deaf comment 🫣😅

Let me spell it out for you. There's people out there who are struggling to make ends meet, and you're like "Oh noooooo, what shall I dooooo with my £27k?".

Have a look on MoneySavingExpert: a good choice of cash ISAs at 5% +

Remember to check after a year as you might want to move it to a differ product of the rate drops.

That ISA rate is very low, you should be able to do much better.

I would not bother with PB's (and I speak as someone who LOVES them).
The amount you would be putting in would probably not generate a meaningful return so you would be better putting it into savings. You tend to get the regular, multiple wins when maxed out, of course you may get a big win (we all hope for that) but if this is the extent of your savings you need to make it work.

Pamela you must be frothing today ... have you seen the holiday thread?

Agree with this. There will always be people with money, and people without. Some of us might cross into either category several times in a lifetime. If we muted every conversation that people found triggering, well…forums like this wouldn’t exist. I don’t have any savings currently, but good for the OP.

And there are people who are lucky enough to be looking to make themselves as self sufficient and resilient as possible having worked hard over 10 years to save for a deposit, or maternity leave, or whatever.

It is possible for MNers to feel outrage for the COLC affecting the poorest and to give advice on handling vulnerability whilst also advising those who are managing to save.

How does it help the poorest if those who are more secure are left to let their savings rot in low interest accounts?

You could put it in an isa with a much better rate especially if you have a fixed term one but you cannot take it out without losing the interest. Best rate I have seen is 5.5%. But think that is not available anymore.

Premium bonds are for fun really, I had about £5 for 30 years that my Granny put in for me or if you have so much money you have maxed out your ISA.

There is nothing wrong with having savings in the bank. In an ideal world we would all have savings and it’s not the OPs fault that others don’t have any.
She’s hardly bragging just trying to make the best of her hard earned savings.

You might need a couple of other saver accounts. Some like Barclays rainy day (over 5%) have a 5k limit as are intended for small savers.

YBS also had decent easy access rates.

Might be worth considering switching current account as some of the deals are attached to you having a current account with same bank.

Money Saving Expert have good tables divided into high street names and less obvious options so you can pick balance that best suits.

If I had no money and was bitter about it I’d just scroll past a thread about how to invest - seems an interesting use of time to be specifically nasty

I have a cash isa with Moneybox - 5%

Looking to make smart financial decisions is in no way tone deaf. You think everyone who has savings should stick them under the mattress and never speak about them for the fear of offending someone (you)?

@bankingpanda you need to do some maths for both scenarios. Work out what your annual interest will be for both options, then take tax away from the savings account interest and you should see which one is better. My quick calculation shows that you would be approximately £70 better off in your first year if you put 20k into savings account.