ISA / Savings advice

Ricochet J

Ricochet J

Ricochet J

Soldato
Joined
29 Jun 2004
Posts
12,954
We (wife and I) recently used our Help to Buy ISA. Due to the rules we cannot open another ISA until April 2019. We have surplus money we want to save every month: minimum £400; maximum £1000.

From this pot we will fund:
  • Future savings (for when we're old and a burden on the system :p )
  • Holidays (1 - 4 per year)
  • Repairs and minor upgrades to our home & car as and when they appear
What are our options? What is your advice?

I know OcUK do love a finance thread...so have at it. :p
 
If you're planning on using the funds for Holidays + Repairs/minor upgrades, then you'll want something with relatively easy access and without incurring penalties for withdrawals, with kind of puts ISA's out of the question.

How big is the pot already? Or are you starting from 0?

There are a number of current accounts on the market that give you the flexibility you need, and without account charges etc. The problem is interest rates as a whole are pretty dire at the moment, so any returns you are getting, will be pretty minuscule.

You're really stuck between having account flexibility and tying funds up for a long period for better returns.

I'd almost suggest having two separate saving pots, one for your long term future savings, and the other as a small pot for instant access that you'll only need so much in.
 
Unless you've maxed out your ISA input for this financial year, you can open another in the same year...
 
I'd open three accounts, one for each purpose. Or for something a bit more simplistic, one for expenditure and one for savings/investing.
 
Ricochet J said:
We (wife and I) recently used our Help to Buy ISA. Due to the rules we cannot open another ISA until April 2019. We have surplus money we want to save every month: minimum £400; maximum £1000.

From this pot we will fund:
  • Future savings (for when we're old and a burden on the system :p ) SIPP / S&S ISA (when you can open one again)
  • Holidays (1 - 4 per year) Savings account
  • Repairs and minor upgrades to our home & car as and when they appear Savings account
What are our options? What is your advice?

I know OcUK do love a finance thread...so have at it. :p
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