Best savings account?

Mercenary Keyboard Warrior said:
Good call. there are some gilts etc options in Vanguard.
Need to look through them all to see which ones are lowest risk and hence least like to deviate much.
(I don't specifically need the cash, but I might so dont want to put into anything potentially short term volatile)
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Not a vanguard fund though, those are not risk free. Not sure if vanguard deal in individual gilts e.g tn24/25 etc. Price after you buy is irrelevant as you've locked in the yield to maturity so you'll get that yield regardless.
 
Mercenary Keyboard Warrior said:
But the maximising position in his example is put £10k in savings at 5% and pay no tax
Put £10k in ISA at 3.8%
Earn £500 = £380 = £880.

Ie you max the highest rate until tax is payable. Then you need to reduce the effective rate on any further investment in taxable accounts by your marginal tax rate (ie 20 or 40%) and recompare.

There is another impossible to predict long term issue. If you had paid into ISAs for years you would be earning all that tax free. If you had chased slightly higher rates in normal accounts you now may have no ability to avoid tax.
It all depends on how much your saving and for how long. (Its a guessing game unfortunately)
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So split it between 2 different types of savings?

Can you dump 10k lump in savings? do mean fixed rate bonds? or savings? i thought most savings accounts only let you put in say £300 or £400 per month on a 5% rate? not dump a lump sum in ?

then put rest in an ISA?
 
DJMK4 said:
So split it between 2 different types of savings?

Can you dump 10k lump in savings? do mean fixed rate bonds? or savings? i thought most savings accounts only let you put in say £300 or £400 per month on a 5% rate? not dump a lump sum in ?

then put rest in an ISA?
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Its a multiple approach you need and you need to decide how much work you want to put in

To maximise you list the highest rates you can get, pay in the max you can in that order.
But remember to not go above £1000 (or £500) expected interest.
Once you get to that point that you would earn that (bear in mind tax years apply in regards receipt of interest) then you need to reduce the effective rate for any taxable interest in that list for any more funds.

You might pay into loads of accounts or just a few. The more you select the more work there is.
The very high paying accounts are typically regular savers so as you say highly limited.
Although most will allow a SO or DD that means once setup its not really much work.
 
Feek said:
I don’t see how to do it. The email said I could transfer it to the existing pot or withdraw it. There’s no option to withdraw.

/edit - oh, I see. It can’t be done via the app.
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Yea, very sneaky. Had to log into the site to do it.
 
Mercenary Keyboard Warrior said:
Its a multiple approach you need and you need to decide how much work you want to put in

To maximise you list the highest rates you can get, pay in the max you can in that order.
But remember to not go above £1000 (or £500) expected interest.
Once you get to that point that you would earn that (bear in mind tax years apply in regards receipt of interest) then you need to reduce the effective rate for any taxable interest in that list for any more funds.

You might pay into loads of accounts or just a few. The more you select the more work there is.
The very high paying accounts are typically regular savers so as you say highly limited.
Although most will allow a SO or DD that means once setup its not really much work.
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Thanks i will take a look on the best accounts to use,

I dont like splitting it in to too many savings accounts if possible

my stratagy so far is that i have just used one account for savings (premium bonds)

i maybe had 2 about 7 years ago when i was saving in to a premium bonds and then help to buy ISA

As soon as im paid i generally send a big lump sum in to savings before any of my bills come out (i pay myself first) then throughout the month i may take about 200 back out of savings,


I guess i can look at the ISA and maybe pick another savings account, but didnt want to be trapped in to only being able to deposit a max of £200 or £300 per month, you would typically only make around £125 interest on that year

Also, i wanted to try and avoid anything instant access (I like the premium bonds as it steers me away of just doing random withdrawals) and makes you wait, it typically means i save better and not impulse spend.
 
DJMK4 said:
Thanks i will take a look on the best accounts to use,

I dont like splitting it in to too many savings accounts if possible

my stratagy so far is that i have just used one account for savings (premium bonds)

i maybe had 2 about 7 years ago when i was saving in to a premium bonds and then help to buy ISA

As soon as im paid i generally send a big lump sum in to savings before any of my bills come out (i pay myself first) then throughout the month i may take about 200 back out of savings,


I guess i can look at the ISA and maybe pick another savings account, but didnt want to be trapped in to only being able to deposit a max of £200 or £300 per month, you would typically only make around £125 interest on that year

Also, i wanted to try and avoid anything instant access (I like the premium bonds as it steers me away of just doing random withdrawals) and makes you wait, it typically means i save better and not impulse spend.
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Worth looking at notice accounts then.
Means your mental "but I will loose x days interest" should stop you spending :)
 
Raymond Lin said:
I think I am going to split my disposable income into 3 separate pots.

1 - SIPP
2 - Index Fund
3 - High Interest accounts

This way that if I actually need an emergency fund, I will just use the interest account, and 2/3rd of my savings would be locked away for the future.
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From my exceedingly limited knowledge, this seems to be the way. Spread deposits between s&s isa (index) and and sipp depending on your goals, which I'm sure change for all of us over time.
 
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Raymond Lin said:
I think I am going to split my disposable income into 3 separate pots.

1 - SIPP
2 - Index Fund
3 - High Interest accounts

This way that if I actually need an emergency fund, I will just use the interest account, and 2/3rd of my savings would be locked away for the future.
Click to expand...


So 3 is instant access saver that you can dip into

Index fund ?

How does this work, iv not delved in to trading , it was a weight up between fix term bonds or trading


What the risk with fix term bonds by the way? Incase the bank goes under they are covered by FCA?

There is so much reading I need to do
 
DJMK4 said:
So 3 is instant access saver that you can dip into

Index fund ?

How does this work, iv not delved in to trading , it was a weight up between fix term bonds or trading


What the risk with fix term bonds by the way? Incase the bank goes under they are covered by FCA?

There is so much reading I need to do
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Yeah, no. 3 would be like Chase account, 4%, instant access. Of course it’s not my current account. My current account has no money lol keep just enough in there for DD and nothing else.

Index funds, it is the stock market but it is like Nutmeg except I don’t use Nutmeg, I use Vanguard. Better fees and more choices. As for which index fund, it’s like picking which company shares to buy I guess, which you need to do research on, there are a few popular ones and “standard”. All comes with risks but it’s a long game. It’s a 20, 30 years game. Not a 2, 5 or even 10 years.

I watch a couple of YT finance channels, Graham Stefan and Andrei Jikh, it’s mostly American orientated but the principles are the same. The latter one is very informative to get a grasp on financial services.
 
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Raymond Lin said:
Yeah, no. 3 would be like Chase account, 4%, instant access. Of course it’s not my current account. My current account has no money lol keep just enough in there for DD and nothing else.

Index funds, it is the stock market but it is like Nutmeg except I don’t use Nutmeg, I use Vanguard. Better fees and more choices. As for which index fund, it’s like picking which company shares to buy I guess, which you need to do research on, there are a few popular ones and “standard”. All comes with risks but it’s a long game. It’s a 20, 30 years game. Not a 2, 5 or even 10 years.

I watch a couple of YT finance channels, Graham Stefan and Andrei Jikh, it’s mostly American orientated but the principles are the same. The latter one is very informative to get a grasp on financial services.
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Ah brill thank you I will take a look, I have heard chase mentioned a few times .

And will have a read up on index funds/stock market stuff but I would have a see if I can get a grasp on what to choose. I don't want huge risk though so maybe not best option for the moment and as you say it's more longer term

Cheers for the YouTube names Il check them out
 
Opened up a Chip in the wife's name. Interest will exceed the tax free allowance. She doesn't fill in self assessment. According to HMRC site her tax code will be adjusted to pay the tax due but struggling to understand how this will be reported. Chip didn't ask for her NI no. Any ideas?
 
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