Best savings account?

Am I reading the Nutmeg thing on Chase correctly?

Sign up through the Chase app and move £1000 over into it.

On the 30th June, they add £100 to my account.

Then I take out £1100 and forget about Nutmeg.
 
Feek said:
Am I reading the Nutmeg thing on Chase correctly?

Sign up through the Chase app and move £1000 over into it.

On the 30th June, they add £100 to my account.

Then I take out £1100 and forget about Nutmeg.
Click to expand...
Yes, it was posted several posts a go. You do have to invest that money but you can put it to super low risk (it is an auto-investor so has a scale of 1 to 10 risk profile. Risk 1 is like 89% bonds).

I believe you can withdraw £500 almost immediately as £500 is the minimum investment amount.

So pay in £1k -> invest -> withdraw £500 immediately -> wait till 30th June.
 
bigmike20vt said:
please don't fall out over my questions. I appreciate both of your replies.
Click to expand...

Your son being 7 now, a savings account is not for you, a stocks and shares account is.

A junior ISA with a all world fund, then when he is 18, he should continue to invest into it.

£200 monthly or so will barely be enough for a deposit probably, however for him to start investing at 18, and over the next couple of decades it will be enough to buy a house.
 
platinum87 said:
Your son being 7 now, a savings account is not for you, a stocks and shares account is.

A junior ISA with a all world fund, then when he is 18, he should continue to invest into it.

£200 monthly or so will barely be enough for a deposit probably, however for him to start investing at 18, and over the next couple of decades it will be enough to buy a house.
Click to expand...

What's the logic here? Genuine question BTW, not a challenge.

My daughter is 8 and I've had a cash JISA going since she was born and it's growing nicely. I also opened a S&S JISA with Vanguard around 2 years ago. I currently weigh her monthly investment 2/3rds to S&S and 1/3rd to cash.

Are you suggesting that at this stage I should now be 100% S&S and just let the cash grow with interest alone?
 
Dirk Diggler said:
What's the logic here? Genuine question BTW, not a challenge.

My daughter is 8 and I've had a cash JISA going since she was born and it's growing nicely. I also opened a S&S JISA with Vanguard around 2 years ago. I currently weigh her monthly investment 2/3rds to S&S and 1/3rd to cash.

Are you suggesting that at this stage I should now be 100% S&S and just let the cash grow with interest alone?
Click to expand...

I am suggesting you have a 100% allocation to equity, zero bonds, zero cash. If you are with vanguard, this is good, have both of their accounts with them, both in something that says, "all world".

The logic here is the performance of equity vs cash over long periods of time, is pretty extreme.

I don't have too much time, so please search that and have a look over long periods periods.

In addition, people who go on nutmeg for that £100, keep in mind, as i have said before, 1/10 risk means nothing. A bond allocation in the face of rising interest rates, while yields are well below inflation, is a very very bad idea.
 
Dirk Diggler said:
Are you suggesting that at this stage I should now be 100% S&S and just let the cash grow with interest alone?
Click to expand...
Absolutely, your daughter doesn't need any cash, cash is for old people and people with bills. Over the long term it'll work out best. In the very short term i.e the next 2 years cash may outperform but then timing the market is basically throwing a dart anyway.
 
Last edited:
200sols said:
Absolutely, your daughter doesn't need any cash, cash is for old people and people with bills. Over the long term it'll work out best. In the very short term i.e the next 2 years cash may outperform but then timing the market is basically throwing a dart anyway.
Click to expand...

I like the idea of guaranteed return, and compounding interest for 18 years is not too bad, but thinking about your comments I can see why ploughing in more cash at this stage might be unwise.

Thanks
 
Dirk Diggler said:
I like the idea of guaranteed return, and compounding interest for 18 years is not too bad, but thinking about your comments I can see why ploughing in more cash at this stage might be unwise.

Thanks
Click to expand...
I would say compounding interest in a savings count is quite bad unless you are getting interest rates higher than inflation. Instead of the investment you are making in your children's future growing over time in real terms, it is decreasing.
Exactly the same principle as your retirement planning and pension investments.

I would do what platinum87 suggests. That said, I probably wouldn't move the whole lot of existing cash into a fund tomorrow. I would probably drip feed it in over a year or so to average out the price I'm buying in at and avoid accidentally buying in at the top of the market.
 
You must log in or register to reply here.
Back
Top Bottom