Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
I have never had an ISA but have £40,000 to invest – as I know little about the savings market, what would you suggest?
First, you will need to decide whether you need access to your money or are happy to lock some or even all of it away for a certain length of time in a fixed rate bond – the longer you are willing to fix your rate for, the higher the rate of interest you will be able to receive, but of course, access to your cash will be limited.
Whatever you decide, a cash ISA – whether an easy access ISA or a fixed rate ISA – is an excellent idea, as interest earned in these accounts is tax-free. However, the most you can save into an ISA in the current tax year is £20,000, meaning you will still have another £20,000 to place into another account. The good news is that the Personal Savings Allowance means basic rate taxpayers can earn £1,000 of savings interest a year in any savings account tax-free, so you should still be protected from the tax-man.
|1 Year Fixed Rate Bond||1.28%|
|2 Year Fixed Rate Bond||1.34%|
|3 Year Fixed Rate Bond||1.49%|
|4 Year Fixed Rate Bond||1.71%|
|5 Year Fixed Rate Bond||1.75%|
|12 November 2019|
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