However, I'm wondering how much money I should be keeping in an easy-access account as I am worried about incurring tax on my savings interest. I'm a basic rate tax payer so is an easy-access account best for me, and how much in savings will tip me into this situation? Savers may wish to take advantage of the high easy-access rates on offer, but too much money in these accounts could tip you into a savings interest tax raidHelen Kirrane of This is Money replies: There is no specific number when it comes to the question of how much money you should keep in an easy access account. Easy-access accounts can be treated as an emergency cash fund, and the general consensus among experts is that you should keep three months worth of living expenses in cash savings in these accounts. So if you are trying to avoid tax on savings interest, you won't want to have more than that amount in the best easy-access account.

Source: Daily Mail October 28, 2023 17:01 UTC