Self Employed: Where to put my tax money?

[Comingtosunset]

For those who are self employed…and money savvy:

Each money I set aside an amount to save for my tax bill. It goes into my NatWest flexible saver (1.5% AER)

I can’t help but think I could get this money to “work for me” a bit more.

>This might sound like a silly question. But would it be wise of me to find another flexible saver, with a higher interest. Or a building society perhaps? I don’t know the difference)

Where do you put your tax savings money?

In my Monzo pot, I think it's 3.85% and easy access. Very nice to be able to see and add to easily but still have separate from my 'main' account.

Following because we have had this exact conversation this weekend. It just goes into an instant access savings account.

I just found the best rate I could on instant access savings. Which is rather better than 1.5%. But I wouldn’t want to take any risks with it as too short term and too necessary for tax bill

I stick mine in my isa, or if it's been a particularly good year, premium bonds. I just have to be organised enough to draw it out in time come January!

Use Marcus:

https://www.marcus.co.uk/uk/en/savings

A much better rate, and also instant access

Thanks everyone. I’ll check out Marcus thank you. And possibly just look at some high interest savings accounts. Any other suggestions on these?

im not keen put it in/withdraw from my ISA. Partly because it affects my interest rate of I withdraw more than 3x a year.

My Nationwide instant access saver is 3%

Premium Bonds.

Santander edge account is 4ish

Premium bonds, or highest interest easy access savings account. Usually PB though.

Premium bonds here too. At the moment my returns are more or less even with what I'd get in a good savings account but it's more fun

Check MSE for the best interest rate accounts with easy access.

I have Marcus. Currently 4.3% AER. It's regularly in the top list at money saving expert. I don't want to have to change account every few months so don't chase the very best rate.

I’d go for the best paying flexible cash isa (currently using trading 212) so you can withdraw it without using up your isa allowance

4.20% in a Monzo pot with instant access

I use plum for savings with 3 month notice still running at about 4.8% they may have changed it, you can move money about and keep some free to withdraw.

And wise

And with wise you can invest in's shares and get some returns with access all online and then it's away from the bank and more of a digital bank.

Mines in a Tandem account 4.15%. Def don’t leave it in something at 1.5%.

Forget to say talk to people in real life if you do choose, so you both get into bonus money.

I put mine in my trading 212 cash ISA - 4.5%, instant access & unlimited withdrawal

DH’s business account with mettle has a “pots” function, that’s where I put aside his tax money.
If you have a big tax bill I imagine an ISA is best as the interest won’t be taxed, whereas it could be in a normal savings account if it goes over £500/£1000 depending on your income tax rate.

Some of the best rates are on "limited access" accounts which are instant access with only a limited number of withdrawals allowed. Which is fine if you only want (say) 3 withdrawals per year.

I use Lloyds, the linked regular saver is 6.25%. You can only save £400 / month but that's almost exactly my tax liability so works perfectly.

Most banks and building societies have such accounts, e.g. Nationwide, Coventry. Most also have accounts that allow only 2-3 withdrawals a year.

Again, MSE list the best interest rates currently available.

Just open another Cash with a decent rate, Trading 212 are good and put ut in there. It is easily accessible, just make sure you dont go over the £20000 limit for paying in between the two

Some banks have a regular saver that you can't access until the end of the year but if you start in say December you have the pay out in time for January tax. First Direct pays 7% and you can pay in £300pcm.
Otherwise premium bonds are instant access.