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I am opening a savings account on natwest - what do these terms mean? watch

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    I am opening an e-savings account (online account) on Natwest to hold my maintenence loan at university, for easy access and an easy way for transfering money.

    I need to know what type of savings account is right for me, what do these terms mean?

    INSTANT
    NOTICE ACCOUNT
    FIXED TERM
    TAX FREE

    what does it mean for me exactly?
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    INSTANT - you can access your cash at any time.
    NOTICE ACCOUNT - you need to give notice before accessing your cash (ie, 3 months notice)
    FIXED TERM - you cannot take your cash out for x amount of time, or cash is only available when you close the account.
    TAX FREE - you do not pay tax on your savings.
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    (Original post by [email protected])
    INSTANT - you can access your cash at any time.
    NOTICE ACCOUNT - you need to give notice before accessing your cash (ie, 3 months notice)
    FIXED TERM - you cannot take your cash out for x amount of time, or cash is only available when you close the account.
    TAX FREE - you do not pay tax on your savings.
    what is the catch for tax free? could you explain what are the coditions for tax free?
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    (Original post by Gr8)
    what is the catch for tax free? could you explain what are the coditions for tax free?
    There is no catch, you don't pay any tax on the savings or money which goes into your account.
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    (Original post by spenncerr)
    There is no catch, you don't pay any tax on the savings or money which goes into your account.
    can I withdraw the money at any time with tax free?

    what are the main differences between instant and tax free, will instant have more interest, will instant be taxed heavily, etc...
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    (Original post by Gr8)
    can I withdraw the money at any time with tax free?

    what are the main differences between instant and tax free, will instant have more interest, will instant be taxed heavily, etc...
    You only have a certain amount of tax-free savings you are allowed to use, and some other accounts will have higher interest if you don't pay tax anyway.
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    (Original post by nexttime)
    You only have a certain amount of tax-free savings you are allowed to use, and some other accounts will have higher interest if you don't pay tax anyway.
    which would be best account to place my maintenence loan for uni, in an instant account or tax free account?
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    Wouldn't it make sense for you to go into a Natwest branch and speak to a professional?
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    (Original post by spenncerr)
    There is no catch, you don't pay any tax on the savings or money which goes into your account.
    which would be best account to place my maintenence loan for uni, in an instant account or tax free account?
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    (Original post by spenncerr)
    Wouldn't it make sense for you to go into a Natwest branch and speak to a professional?
    Read.
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    (Original post by spenncerr)
    Read.
    alright, but may I ask for your opinion on which is better first?
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    help me!
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    They don't tax the money in your account, they tax the interest, but you might not be eligible to pay this tax in the first place.
    You get a worse rate if you choose an instant access account over a notice one.
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    (Original post by Gr8)
    which would be best account to place my maintenence loan for uni, in an instant account or tax free account?
    At uni you probably want an account with a card and chequebook so you can pay for stuff, so neither - a current account for everyday running, and if you have spare money look on moneysupermarket to find out where will pay you the most.
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    Ok... Do you have any bank account at all at the moment? Interests rates aren't great with natwest, but I'd recommend getting their student current - http://www.natwest.com/microsites/pe...ProdPageStuBnr

    And, as a savings account, go for the e-ISA (can save up to £3600 tax free), interest rate is about 2-2.6% if I remember right. http://www.natwest.com/personal/savi...isa/apply.ashx Much rate than their other saving options, but not as good as the top saving accounts around. You can transfer your money between your student account and savings account via online banking.

    Hope that helped.
 
 
 
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