| The difference between them is: |
|
Where can I get the best rates? Usually from online, telephone or postal accounts. These organisations can offer better rates because they do not have to pay for the cost of supporting a branch network. |
| Tip Monitor your rates regularly. Banks and building societies have a nasty habit of launching top-paying accounts and then slowly cutting the rates when they have attracted enough money. If your account starts becoming uncompetitive, switch to one that pays a better rate. |
To withdraw cash from an internet account Your online bank or building society will normally supply a cashpoint card. |
How to get interest paid without being taxed Banks and building societies automatically pay interest net of basic rate tax. If you are a non-taxpayer, you can get your interest paid before tax by completing an IR85 form, available from your bank or building society. You do not have to be a non-taxpayer to escape tax - simply take out an individual savings account (ISA). These tax-free savings schemes let you shelter up to £7,000 of cash, insurance and equity investments from the taxman’s grasp. |
