1k in Savings

Guest2

Guest2

Guest2

Soldato
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6 May 2009
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I know its not that much but I have managed to save 1k. The interest rate with Nationwide e-savings is terrible. What would you recommend I put the money into that would do something for me?

Maybe a 1k ISA or or something else like stocks and shares. A mate is doing something similar but he has arranged a meeting with a financial advisor instead
 
If you want a cash ISA I just transferred mine from Nationwide to Santander as the rates were way better.

Only do stocks and shares if you can write the money off & are happy losing it, can go either way.
 
I'd say get it in an ISA, probably at about 3.25%, and contribute as much as you can to it each month, try put aside £30-100 per month and watch it grow. It'll be yours, safe and gaining a stable interest.
 
Good to get it created by April 5th so that it uses the 2009/10 allowance, that'll keep your full allowance for next year available
 
I would say concentrate on saving up more money and don't worry too much what your 1k is doing. The amount of interest you can get from a savings account or ISA in the current climate will be tiny (i.e. less than £100 in a year). If you bought shares in just one company you would pay at least £10 (fees) to buy them, £5 stamp duty and then £10 when you wanted to sell them.
 
Apparently nationwide have introduced some new e-ISA thing which is better than their normal savings accounts. I don't know the rates but was recommended to check it out.
 
I think the rates are pretty poor for ISA at the moment anyway arnt they? I'm sure not too long ago im e-savings interest rate was something like 5%
I'll look into moving it to an ISA before 5th April..however i need to buy a leeds fest ticket at the end of march :rolleyes:
 
as it happens i have spent the whole day on this topic, only a hell of a lot bigger sum of money, i think the same will apply though,

alliance and lester seems to have the best Fixed AER accounts
and
Santender have the best open ISA account.

if you are able to place your money in an accout and forget about it i would look at the latter.
 
For that amount of cash I would either put in high risk shares or premium bonds, just make the potential returns a lot more exciting :)
 
mast3r said:
as it happens i have spent the whole day on this topic, only a hell of a lot bigger sum of money, i think the same will apply though,

alliance and lester seems to have the best Fixed AER accounts
and
Santender have the best open ISA account.

if you are able to place your money in an accout and forget about it i would look at the latter.
Click to expand...

Don't you mean former? (given the fixed AER)
 
You shouldn't really be discussing finances with anyone who is not your attourney or accountant but hey... ISA would be the best option unless you've the experience & the balls to invest in the Stock Market.
 
Guest2 said:
I know its not that much but I have managed to save 1k. The interest rate with Nationwide e-savings is terrible. What would you recommend I put the money into that would do something for me?

Maybe a 1k ISA or or something else like stocks and shares. A mate is doing something similar but he has arranged a meeting with a financial advisor instead
Click to expand...

It really depends what you are saving for. If it's somthing that you'll need in the next five years then perhaps deposit style savings like Cash ISAs or premium bonds would be worth looking at. If you are saving as you have a disposable income and don't want to just squander all of it and you are happy to save for five years plus an Investment ISA would be suitable.

Investment ISAs have a degree of risk with the capital which is paid into it i.e. the value of it will tend to fluctuate from day to day depending on how the underlying investment assets are performing. However in the longer term they tend to far outperform deposit style savings.

If the idea of 'risk' ing the capital worries you then it's worth bearing in mind that there is also risk associated with deposit accounts and Cash ISAs also 'Inflation risk' which is the risk that the returns which you recieve on your money are below the rate of inflation...loosing buying power over time.

So short answer = short term savings - Cash ISA
Longer term = investments

A post further up talks about dealing costs with Investments, you'll tend to find with an investment ISA you can have a Collective Investment where you may pay somthing like %5 per payment into the fund and then a % of growth as a charge.
 
Spend it. There's not much point in saving at the moment, intrest rates (unless you have a lot of money) are lower than inflation.
 
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