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Where to put savings?

Apex said:
I've got £30k in savings I've currently sat in a 0.25% saving account so need to figure out what to do with this as it's slowly being wasted.

My thoughts are

Put all in 1.3% Marcus easy access saving now. I assume this isn't the same as the yearly £20k savings allowance you get? But just a normal, without penalty saving account that can change interest rate?

Open up a couple different regular savings, such as first direct and HSBC both offer 2.75% if paying in £300 per month which I'd have as a standing order, plus first direct offer a £100 joining bonus. Am I allowed more than 1 of these type of savings account, esp as first direct/HSBC are the same company?

Then once April hits I'd planned to get a new ISA and put £20k in there, but the savings rate seem to same as the marcus, but with the downside that taking money out comes with penalties.

Is there a better idea I can do with this money?

I don't intend to need it, and if I did, I'd imagine no more than £10k for a vehicle.

I should note that this £30k was saved from just a few months in summer last year and I expect to have the same again this summer, so all going to plan I'll have £60k by October, which is why I feel I definitely need to start making the most of the potential I can get from savings.
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Do you have a mortgage?
I'm a big fan of offset mortgages as not only does it erase the interest on what is typically your largest debt it also acts as a place to have access to some emergency cash if it's ever required.
 
Shure said:
Do you have a mortgage?
I'm a big fan of offset mortgages as not only does it erase the interest on what is typically your largest debt it also acts as a place to have access to some emergency cash if it's ever required.
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Yes I do. Only reason I haven't put it into the mortgage as I had originally planned to do the 10 percent early payment each year, is because just in case I did want to access the money it's not as easy. Our interest rate is 2.4 percent, I had found metro 1 year fixed I could get 1.9 so the difference in interest wasn't that high. That rate has now gone as I missed the transfer date.

I figured when mortgage is up for renewal in 3.5 years I can pay off a big chunk more then.
 
Apex said:
I've got £30k in savings I've currently sat in a 0.25% saving account so need to figure out what to do with this as it's slowly being wasted.

My thoughts are

Put all in 1.3% Marcus easy access saving now. I assume this isn't the same as the yearly £20k savings allowance you get? But just a normal, without penalty saving account that can change interest rate?

Open up a couple different regular savings, such as first direct and HSBC both offer 2.75% if paying in £300 per month which I'd have as a standing order, plus first direct offer a £100 joining bonus. Am I allowed more than 1 of these type of savings account, esp as first direct/HSBC are the same company?

Then once April hits I'd planned to get a new ISA and put £20k in there, but the savings rate seem to same as the marcus, but with the downside that taking money out comes with penalties.

Is there a better idea I can do with this money?

I don't intend to need it, and if I did, I'd imagine no more than £10k for a vehicle.

I should note that this £30k was saved from just a few months in summer last year and I expect to have the same again this summer, so all going to plan I'll have £60k by October, which is why I feel I definitely need to start making the most of the potential I can get from savings.
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I would just buy PB with it....
 
easyrider said:
I would just buy PB with it....
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I'm reluctant to do this based on the Martin Lewis advice has been spouting for years. He's always come across as a sensible, honest, unbiased view so taken his words with greater weight than others.

Why PB over a savings account? Because savings interest is so small now it won't change my balance much, but PB could?
 
I've put more into PB this week, only need a few wins to make more than my saving accounts make in interest, I think they paying .2% at the moment, ISA's are doing nothing and inflation is just below 2%.
 
Apex said:
I'm reluctant to do this based on the Martin Lewis advice has been spouting for years. He's always come across as a sensible, honest, unbiased view so taken his words with greater weight than others.

Why PB over a savings account? Because savings interest is so small now it won't change my balance much, but PB could?
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Why bother with a savings account earning hardly any interest...I’ve already scooped £250 from winnings in the PB in the past 6 months...

This return blows chunks over any savings account...

plus it’s fun and you could win a million...:p

Got to be in it to win it...earning a paltry 1% sucks...
 
easyrider said:
Why bother with a savings account earning hardly any interest...I’ve already scooped £250 from winnings in the PB in the past 6 months...

This return blows chunks over any savings account...

plus it’s fun and you could win a million...
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On average, a good savings account will give a better return.

You could put the money in a Marcus account and use the few pounds extra you get each month over average PB to buy some lottery tickets. Then you've also got the chance to win 10s of millions.
 
touch said:
On average, a good savings account will give a better return.

You could put the money in a Marcus account and use the few pounds extra you get each month over average PB to buy some lottery tickets. Then you've also got the chance to win 10s of millions.
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Doesn’t look that exciting to me?

Can Marcus by Goldman Sachs change the interest rate?
Yes, the interest rate is variable. Please see part 2 of the terms and conditions for information on when we may vary your interest rate and how we’ll let you know.

What would the estimated balance be after 12 months based on a £1,000 deposit?
Projected balance after 12 months (interest rate of 1.30% AER)
£1,013.00
 
easyrider said:
Might as well have the money earning 1.3% and the chance to win more rather than just a savings account earning 1.3% imo.
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The 1.3 on premium bonds is average though. The fact that someone will win a million means its counted in the average returns rate so most people don't get anywhere near the 1.3 percent.
 
I can't believe that things have got so bad that premium bonds are pushed as a great savings plan!
 
easyrider said:
Think Big :D
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Or think pragmatic. With Premium Bonds it is a near certainty that your savings will devalue with inflation, a near certainty that you won't 'win' £1 million and a better than average chance that you won't achieve the stated average interest rate.

:)
 
The_Abyss said:
Or think pragmatic. With Premium Bonds it is a near certainty that your savings will devalue with inflation, a near certainty that you won't 'win' £1 million and a better than average chance that you won't achieve the stated average interest rate.

:)
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Kids gotta dream :cool:
 
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