PoolePaul

Hi all
we are planning a move over to spain early next year, and are going to rent first while we look for a suitable property to buy.

my question is what should we do with our capital ( about £100,000.)
what sort of monthy return would we get .
we need to know how far it will go to pay rental ect.

thanks
Paul

Hillybilly

Stick it in a UK high interest easy access internet account or similar (check the papers for the best rates). Link it to your regular bank acct and set up an acct with a currency transfer company (before you leave the UK - it's easier!) so that you can get your hands on your hardearned cash when you need it (just in case you find that dream home and need to act fast!). That would be my advice!

Fred James

Many people use Nationwide because you can draw cash from ATMs in Spain at good exchange rates and with no extra charges.

Jorgi

Try treasury reserve (ask your bank for latest rates). At this time you should get about £450 a month. By filling in a simple form from inland revenue this can be paid gross. You can deposit your money for any time from one day upward which gives you controlled access to it.

MnM

I saw an advert yesterday on Channel 4 for a Sainsburys internet account ....paying 6% interest!!!

Jorgi

Read the small print

PoolePaul

thanks all for replies,
would we have to pay capital gains tax ? the money will be funds from the sale of our house ..

Jorgi

Not if it is your principal house

PoolePaul

thats a relief!!!

patsywhitehair

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i put my hundred grand in the alliance and leicester bs you can only put as high as that then when the interest is paid (so not to take it over the hundred grand) it is sent by them to my nationwide account for which i can access in spain without any charges. I think after tax is taken off the hundred grand (off the top of my head) i get £350. hope this helps. mind you I do have my pension coming in and maybe you may not pay tax etc but do have a look at the A&K B/S web page it will tell you more about it.

Big Pete

Hi Paul

You should be able to fill a form in to get interest supplied tax free from a bank or building society , as you will be over in spain and going to the spanish system ..

You should be able to get a 6% return tax free that way . ie 6% of £ 100,000 will give you £ 6,000 a year .

so should cover your rents ok i should think ..

PoolePaul

Thanks Pete
Just the sort of news i was hoping to hear..

Big Pete

No probs and very shortly the rate will be up again you watch , good times coming for savers bad news for borrowers