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Coming from the same thread that spawned this discussion, my warchest is a mixture of tax-free accounts supplemented by any other "high rate" accounts I can find.
I have maxed out both my own and my wifes ISA allowance with cash from the business, I then have a number of regular savers on the go (one 8%, one 4%) and then remainder is going in to other options (such as P2P lending).
This being my first contract, I set myself a target of setting aside a number of months salary set aside equal to the number of months my contract ran for (so I've achieved 6 months of salary squirreled away in the 6 months I've been contracting).
I understand that having easy access to my cash in this way is tempting but as I see it, that cash will fund my time on the bench not a new car/clothes/shoes for the wife.
I'm about to start my first extension (6 months) so am now using up whatever savings accounts are left and then will start to build a buffer in the business account (paying a paltry 0.05% or equally sickening rate).
Helpful to say that I have a 50/50 shareholding of my LTD and the other half is only earning around £19k so works well for us.
Or ING Direct (soon to become Barclays). They had a 2% account, at least until recently. Funding For Lending has killed savings rates and business rates have always been lagging.
Or ING Direct (soon to become Barclays). They had a 2% account, at least until recently. Funding For Lending has killed savings rates and business rates have always been lagging.
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