Best savings account?

MookJong said:
Do you have a mortgage?

Overpay that if you can and get debt free...then put the monthly money into your pension.
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Being "gifted" the money to pay off the mortgage, the £500 then instead of going on mortgage payments is going into a savings account, in case the gifter needs it for an emergency in the next ten years - so needs to be accessible but not regularly.
 
pepp77 said:
Being "gifted" the money to pay off the mortgage, the £500 then instead of going on mortgage payments is going into a savings account, in case the gifter needs it for an emergency in the next ten years - so needs to be accessible but not regularly.
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Understood.

Best rated instant access cash ISA you can find then, probably. I went with ZOPA, maxed out I'm making about £80.00 a month.
 
pepp77 said:
Its an option, but would need 2 as most seem to limit to £250 a month and I already have about 9 different accounts for my own money, so wanted to keep this to one account to just make my life easier.
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Have a look at this flow chart...it's not one-size fits all, but it's a pretty sensible appoach to personal finance planning...

Having 9 accounts is mental... and are you aware that the 20k ISA allowance is only once per year, meaning you can put another 20k into (say a very safe cash ISA) every year, tax free. So then you benefit even more from tax-free compound interest...?

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For example I opened a Chip cash ISA in March this year, I put 20k straight into it, and as April is a new financial year, I banged another 20k in, for a total of 40k.

It's current balance is ~41k.. I've made a thousand pounds in tax free interest in 6 months from 40k, by literally doing nothing and watching the account grow.

By splitting your investments over many accounts, you're not getting the full benefit of compound interest on larger sums in fewer accounts.
 
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mattyfez said:
Have a look at this flow chart...it's not one-size fits all, but it's a pretty sensible appoach to personal finance planning...

Having 9 accounts is mental... and are you aware that the 20k ISA allowance is only once per year, meaning you can put another 20k into (say a very safe cash ISA) every year, tax free. So then you benefit even more from tax-free compound interest...?

ukpersonal.finance

The Flowchart - UKPersonalFinance Wiki

A starting point for your financial planning journey in 8 steps, from the wiki for Reddit's /r/ukpersonalfinance!
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For example I opened a Chip cash ISA in March this year, I put 20k straight into it, and as April is a new financial year, I banged another 20k in, for a total of 40k.

It's current balance is ~41k.. I've made a thousand pounds in tax free interest in 6 months from 40k, by literally doing nothing and watching the account grow.

By splitting your investments over many accounts, you're not getting the full benefit of compound interest on larger sums in fewer accounts.
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That last sentence is wrong. If you have £1000 in 1 account paying a certain interest, and you have £1000 spread over 10 accounts paying the same interest, you end up with the same amount after the same period of time.
 
tangey said:
That last sentence is wrong. If you have £1000 in 1 account paying a certain interest, and you have £1000 spread over 10 accounts paying the same interest, you end up with the same amount after the same period of time.
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True if its the same amount but the original post says
limit to £250 a month
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It's a marketing trick to make people think they getting a good deal but limit the amount they can invest. Its actually a worst deal over the 1 year then investing the whole amount at a lower interest rate.
 
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smokedog said:
True if its the same amount but the original post says


It's a marketing trick to make people think they getting a good deal but limit the amount they can invest. Its actually a worst deal over the 1 year then investing the whole amount at a lower interest rate.
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The illustration you provided is not comparing like to like. Its comparing someone that only has access to £350 a month, to someone that has immediate access to £4450 a month.

a)If the person only has access to £350 a month, they can't do the second example.
b)If the person DOES have £4450 they should NEVER do the second example ! They should put it into the 4.8% account and then drip feed £350 a month from there into the 7% account.

It is marketing in that the provider of the higher % is using a loss leader in an attempt to get further products from the saver that they CAN make money on.

The poster who said " By splitting your investments over many accounts, you're not getting the full benefit of compound interest on larger sums in fewer accounts." is wrong. Compounding is unchanged simply as a result of having money in different accounts.
 
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Yes.
I use a regular saver for my... Regular saving.

Obviously if I had 5k I'd plop it in my t212 5.1pc isa.
However. Many people save monthly. And this is where those regular savers can't be beaten for fixed rates.

My lloyds is 6.25pc and I can put in 400.

Quick and dirty.
400*12 =4800.
Half it.. 2400
2400*0.0625
=150
That's a bit under what you'll get at year end.
Its a bit under as you start from 400 not 0 and halving it isn't precise. But it's near enough.

At maturity this could go into my isa as a dump. Rinse and repeat.

Its part of my holiday fund so it is spent!
 
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I think if you have 9 accounts you probably are aware that you can earn interest on savings.
413x said:
Yes.
I use a regular saver for my... Regular saving.

Obviously if I had 5k I'd plop it in my t212 5.1pc isa.
However. Many people save monthly. And this is where those regular savers can't be beaten for fixed rates.

My lloyds is 6.25pc and I can put in 400.

Quick and dirty.
400*12 =4800.
Half it.. 2400
2400*0.0625
=150
That's a bit under what you'll get at year end.
Its a bit under as you start from 400 not 0 and halving it isn't precise. But it's near enough.

At maturity this could go into my isa as a dump. Rinse and repeat.

Its part of my holiday fund so it is spent!
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I love the regular saver maturity dump.
 
Without sounding like a sheep I have made my sipp tax free cash available (as in 1 trigger pull away ) leading up to the budget, two chats with an advisor and two documents to be created and read so it's not a week job.
Anyway keeping an eye on this again (eg ruling out abolishing or cutting tax free allowance) as it will need a home before putting it in to house projects ect IF I pull that trigger (apparently there's a sizable outflow at the moment)
I know all the cons of this btw and tax implications but have a choice now at least
 
I'm currently earning about £200 a month on 3 ISAs and a Kroo account. I'm not sure if leaving it where it is is best plan of action or looking for something for the new tax year. 2 are Barclays basic ISAs.
I don't have a private pension but obviously do through work. Does anyone think it would be worth me starting a private one?
 
marinersfan said:
I'm currently earning about £200 a month on 3 ISAs and a Kroo account. I'm not sure if leaving it where it is is best plan of action or looking for something for the new tax year. 2 are Barclays basic ISAs.
I don't have a private pension but obviously do through work. Does anyone think it would be worth me starting a private one?
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Depends how much your own pension is and depends how much you want to save. Whether saving inside an ISA, Stocks or property, it is all methods of wealth building, pension is a part of that. So whether it is worth starting a private one? It's simply a way to save.
 
Just had an email from Nationwide that my 1 year ISA14 interest rate is being reduced from 1st Nov (4.25% to 4.1%)

Not fussed as it matures around that date anyway so will likely be looking to move it on along with my NW Regular Saver which matures at the same time....
 
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