Best savings account?

dlockers said:
Sign up to Fidelity Junior S&S ISA
Setup an account and pay in the money
Invest into a standard global index fund - VWRP, VWRA, VAFTA. I use VAFTGAG although I am certain it was never called this before.

It sounds complicated and it can seem a bit daunting but its basically set and forget.
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Love the sound of VAFTGAG.

I will take a look at this then, like you say it sounds complex but prob just set and forget.

Do they charge fees at all I have read about that?
 
Vanquish-Storm said:
Love the sound of VAFTGAG.

I will take a look at this then, like you say it sounds complex but prob just set and forget.

Do they charge fees at all I have read about that?
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There is a fee, I am not sure how much on Fidelity. I use Vanguard and the fee is small, like 0.03%. On Vanguard there is a cash account pot where the fees gets pulled from. I just keep £20 or so in there and check it every year and top that up.
 
dirtychinchilla said:
Sorry just picking up on replies here. Yeah I'm in the higher, not super high, tax bracket.
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You can make £500 tax free on regular savings then; until your ISA resets in April (only a few months away now). Its up to you; I find premium bonds very unreliable and the chance is pretty unlikely. It only seems to provide regular returns if you have £50k in.
 
GeX said:
I did ask this around May last year, and didn't follow it up as we put the money elsewhere.

I'm looking at the best place to put money for our kids (age 2 and 5) when they're 18. Currently about £8k between them. It needs to be in ISAs for them as otherwise I'm liable for tax on any interest (does it count as interest on S&S ISAs, or is it just CGT.. I guess it doens't matter as it's tax free there anyway)

Would https://www.fidelity.co.uk/junior-isa/#tab-link still be the best way to go, and then.. invest into Vanguard index funds (how do I determine which I want there?) ?
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Fidelity, HSBC or Vanguard world index tracker.
https://www.youtube.com/watch?v=wV1JNbNBH4A VWRP or VAFTGAG
Hargreaves Lansdown also offer no fees.
Set and forget approach.
 
dlockers said:
You can make £500 tax free on regular savings then; until your ISA resets in April (only a few months away now). Its up to you; I find premium bonds very unreliable and the chance is pretty unlikely. It only seems to provide regular returns if you have £50k in.
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I don't think we've got enough money to make £500 with - we'd need an 8.3% account.

If I'm limited to £500 (wife isn't), then I'm probably better putting my bit in an ISA then, right? Assuming I can get a higher or at least similar interest rate.
 
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dirtychinchilla said:
I don't think we've got enough money to make £500 with - we'd need an 8.3% account.

If I'm limited to £500 (wife isn't), then I'm probably better putting my bit in an ISA then, right? Assuming I can get a higher or at least similar interest rate.
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You have £60k? You only need £10,000 to get £500 a year at 5%, there are 2 of you, so that's £20,000 cash. She can have £20,000 cash earning up to £1,000 if she isn't. That is £1500 free money. £30,000 of your total, the rest into ISA, £20,000 now in one, £10,000 in your wife's. Done.
 
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dirtychinchilla said:
I don't think we've got enough money to make £500 with - we'd need an 8.3% account.

If I'm limited to £500 (wife isn't), then I'm probably better putting my bit in an ISA then, right? Assuming I can get a higher or at least similar interest rate.
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I think based on your breakout though you've already got 40k in your two ISAs (so effectively maxed till April).
 
Raymond Lin said:
You have £60k? You only need £10,000 to get £500 a year at 5%, there are 2 of you, so that's £20,000 cash. She can have £20,000 cash earning up to £1,000 if she isn't. That is £1500 free money. £30,000 of your total, the rest into ISA, £20,000 now in one, £10,000 in your wife's. Done.
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I just want to make sure I'm maximising the potential across the board. Sounds sensible though, thanks.

dlockers said:
I think based on your breakout though you've already got 40k in your two ISAs (so effectively maxed till April).
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I've not done anything yet.
 
In theory, S&S ISA has the potential to give a bigger return, there is also the risk factor of course. So hence my approach of 50% into cash savings at 5%, the rest into ISA (or S&S if you want to be more risky).
 
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Raymond Lin said:
There is a fee, I am not sure how much on Fidelity. I use Vanguard and the fee is small, like 0.03%. On Vanguard there is a cash account pot where the fees gets pulled from. I just keep £20 or so in there and check it every year and top that up.
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dlockers said:
The funds will have a fee embedded but Vanguard are usually dirt cheap. Fidelity has zero fees for Junior ISAs.
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Thanks I will defo have a look - I assume the places alike Fidelity, Shepards, Nutmeg ext are all a much a like too?
 
Sorry, slight addition to the question. £20k will go in each ISA right now. That leaves £20k spare. £10k of that is going to be an emergency fund. Where would be best to put that in your opinions? I would guess we wouldn't need immediate access to it (< a few days), but we might need it within a month e.g., short term emergency could be paid from elsewhere, but then paid back from the emergency fund shortly after.
 
dirtychinchilla said:
Ah, so then we end up with £40k in one ISA which is also subject to the higher interest rate?
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No interest on ISAs.

So today - put £20k in one, £20k in another
In April the tax year resets, put the other £20k in.


dirtychinchilla said:
Sorry, slight addition to the question. £20k will go in each ISA right now. That leaves £20k spare. £10k of that is going to be an emergency fund. Where would be best to put that in your opinions? I would guess we wouldn't need immediate access to it (< a few days), but we might need it within a month e.g., short term emergency could be paid from elsewhere, but then paid back from the emergency fund shortly after.
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Zopa is one of the better ISA providers ATM and its fully flexible.

Vanquish-Storm said:
Thanks I will defo have a look - I assume the places alike Fidelity, Shepards, Nutmeg ext are all a much a like too?
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Fidelity are specifically recommended for Junior ISAs as they have zero fees. I believe Hargreaves are now trying to compete but they didn't have the fund I wanted either. The answer is Fidelity basically.
 
GeX said:
I did ask this around May last year, and didn't follow it up as we put the money elsewhere.

I'm looking at the best place to put money for our kids (age 2 and 5) when they're 18. Currently about £8k between them. It needs to be in ISAs for them as otherwise I'm liable for tax on any interest (does it count as interest on S&S ISAs, or is it just CGT.. I guess it doens't matter as it's tax free there anyway)

Would https://www.fidelity.co.uk/junior-isa/#tab-link still be the best way to go, and then.. invest into Vanguard index funds (how do I determine which I want there?) ?
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Come to a decision?

Not a bad watch on Vanguard funds.

Some index comparisons and seems the Fidelity Index fund does well against Vanguard. Obviously things can change but find it is less talked about by the so called money guys on YT.
 
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Raymond Lin said:
In theory, S&S ISA has the potential to give a bigger return, there is also the risk factor of course. So hence my approach of 50% into cash savings at 5%, the rest into ISA (or S&S if you want to be more risky).
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Is there any higher tax bracket considerations for this advice ?

Im currently on par to reach the limit for this year end of this month for an account I opened in Dec. Which will put me in a nice position for the new tax year with the same product account
 
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