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HPC=dream

Regular Savings

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I am very pleased this week as after many years I am finally debt free. A combination of leaving Uni in debt, wife losing her job whilst pregnant and some other stuff meant I was in about £30k of debt some 5 years ago. This has now all gone........hooray! In addition to this I have just had a pay rise.

I am now in a position to save around £1000 per month which is great. However; other than using my ISA allowance of circa £500 where should I put my savings?

I have thought about Premium Bonds but the returns don't look great. I may buy some tinned beans and gold coins just in case but where so other people put their money?

Any thoughts would be greatly appreciated.

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I'm an uncomplicated saver, too risk averse (unknowledgeable?!) for stocks and shares, and even though I almost put a decent % into PMs on more than one occasion over the past year or so, I decided that I had already missed that boat and didn't buy the "to the moon" arguments...

So I have the cash ISA, a fixed term bond (money locked away, maturing in a couple of years) and the Santander 123 current account that I get 3% on, up to 20k. I don't have enough savings that this is maxed out, but you can always open 2 apparently.

EDIT - Well done on getting out of debt, such a good feeling! :)

Edited by LC1

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If you want to stay in cash and save monthly then I would encourage you to try a monthly savings plan.

I have one that is still paying 3.6% with one of the small building socieities - and I can make at least one free withdrawal a year without penalty.

I have another paying 3.1% that would allow me to invest up to £500 a month.

Leeds BS has one paying 3.05%

http://moneyfacts.co.uk/savings/regular-savings-accounts/

Even 5 year fixed rate bonds aren't paying that - and these allow you penalty free access at any time.

Just avoid the 12 month fixed rate ones - you want to be able to build up savings long term not get 3% for 12 months and then have it drop to 0.5%/

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Thanks for the replies.

I saw a cash ISA from Newcastle BS paying 2% with a 1% regular savings bonus. It is meant for those saving for a house deposit and they give you either £500 or £1000 cash back if you take a mortgage product with them depending on the size of your 'pot'.

Zopa looks like a good option for putting some money away for the longer term at 4.6% plus they have a Safeguard fund to protect against bad debts. Is it really that straight forward and why aren't more people doing this if the money is Safeguarded? Is it because it is not tax free?

I think I will start with the ISA as putting away around £1k per month from October means I will just reach my limit by Feb/March and then see what is around.

Just noticed you can only save £500 per month so probably have to set one up in my wife's name as well. Lets hope she doesn't run off with it!

Edited by HPC=dream

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If I were you I would put £300/mo in the First Direct 6% regular saver. You'll get your £125 welcome bonus too. OK So over the year it probably works out at around 2.8% before tax but unless you're investing a lump sum then it's probably the best on the market. Santander is OK too although I believe there is a fee?

I am trying out zopa and recommend it. Funding Circle is a no go. It feels quite secure but they disguise it quite well I suppose. Bear in mind that while it is a 4.7% (or whatever) projected interest rate but you are also loaning to people for 3-5 years. So that money is tied up essentially like a bond (although withdrawable at a fee). However as you earn interest it will automatically reinvest that for you in £10 segments. So eventually you will have some "bonds" "maturing" in january, some in february, some in march etc.

I am asking the same question though. I've maxed out the FD, the ISAs, the Lloyds/TSB Vantage accounts... and no idea what to do with the other £50k.

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If I were you I would put £300/mo in the First Direct 6% regular saver. You'll get your £125 welcome bonus too. OK So over the year it probably works out at around 2.8% before tax but unless you're investing a lump sum then it's probably the best on the market. Santander is OK too although I believe there is a fee?

I am trying out zopa and recommend it. Funding Circle is a no go. It feels quite secure but they disguise it quite well I suppose. Bear in mind that while it is a 4.7% (or whatever) projected interest rate but you are also loaning to people for 3-5 years. So that money is tied up essentially like a bond (although withdrawable at a fee). However as you earn interest it will automatically reinvest that for you in £10 segments. So eventually you will have some "bonds" "maturing" in january, some in february, some in march etc.

I am asking the same question though. I've maxed out the FD, the ISAs, the Lloyds/TSB Vantage accounts... and no idea what to do with the other £50k.

That's very helpful. I am a bit reluctant to change banks, currently with Natwest and the only reason is that their banking app really makes my life a great deal easier. I know if is a stupid reason to stick with a bank but I don't know what I would do without it now.

Has anyone else had experience of some of the other bank app's?

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