Found 22nd Nov 2008
Can anyone offer help or point me in the right direction for a good explanation of saving accounts ( I know google is my friend - but its hard to know what is good advice and what is not when you have no clue). I was looking at the Alliance & Leicester eSaver

alliance-leicester.co.uk/sav…spx

It says Earn 6.30% gross p.a./AER variable (6.13% gross monthly), if you don't make a withdrawal. Could someone explain how this would work if I had say £5000 sitting in the account without withdrawing. Its paid monthly, so is it just say 6.3% of £5000=315 per annum so 315/12 = £26.25 per month?

Any help will be appreciated and repped

9 Comments

Banned

Do you have an ISA already? They are much better + also instant access. Are you already an A&L Account holder? Their current account is much the better option for the first 2500 of your savings.

Banned

Don't forget the tax in your savings calculations - the big advantage of an ISA is no tax payable.

Original Poster

Dont have an ISA no. Are they not risky? Im getting an account with A&L at the beginning of Dec once Im on the electoral roll at my new address.

I'm a student so would I be exempt from tax?

I'd look on the moneysavingexpert.com, there is lots of advice there

Banned

cbryanp;3538731

Dont have an ISA no. Are they not risky? Im getting an account with A&L … Dont have an ISA no. Are they not risky? Im getting an account with A&L at the beginning of Dec once Im on the electoral roll at my new address.I'm a student so would I be exempt from tax?



Nobody is exempt from tax. If you earn above the threshold (4k? 5k? changed recently) you will pay tax. Cash ISAs are basically bank accounts, and have the same risk. Look on MSE - You probably want to get an ISA for this tax year to use your allowance for when you ARE working. It depends on your personal circumstance so heavily you might not want to talk to a stranger about it.

ISA - moneysavingexpert.com/sav…isa
moneysavingexpert.com/ban…unt

If you are a student get a 0% overdraft and put that money into a cash ISA - pocket the £30 or so you'll make in a year on £1000.

Original Poster

Ok thanks stevenpcurtis red added for your help

Don't forget this is variable rate, so the chance of you getting 6.3% this time next year......there's a pig just flown by my window....

P.S. last week AK Bank was dojng a deposit account for 1 year at 6%.

Cheers

Tesco internet saver looks good - no need to go for ISA if you can register any account in name of non-taxpayer and submit form R85...........................

MoneySavingExpert best for this type of question.............

Banned

RogerN;3587082

Tesco internet saver looks good - no need to go for ISA if you can … Tesco internet saver looks good - no need to go for ISA if you can register any account in name of non-taxpayer and submit form R85...........................MoneySavingExpert best for this type of question.............


yeah but the big advantage of an isa is that you can build up a nice tax free nest egg for later years when you start working
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