I have a sizeable sum of money sitting in an account with a high street bank which I would like to earn more interest on. Where can I get a good rate of interest on my money whilst having easy access to the money should I need it?
Getting the best interest rate on your savings means shopping around and watching out for the small print. Many banks and building societies offer savings accounts that have introductory special interest rates or bonuses attached. These soon come to an end and leave you with a much less competitive rate of interest.
A good way to earn more interest is to avoid paying tax. As a basic rate taxpayer you will be paying 20% income tax on your savings interest and this increases to 40% for higher rate taxpayers. Moving your savings into a mini-cash ISA (Individual Savings Account) shelters the cash from income tax so you get a gross rather than net rate of interest. You can put up to £3,000 into a cash ISA each tax year and many accounts offer instant access to your cash
(Information is intended for guidance only and is offered without any legal responsibility. None of the information provided constitutes any form of recommendation and is not intended to be relied upon by you in making any investment decision. You should always obtain independent professional financial advice before making any investment decisions).