Savings Advice.

Ahleckz

Ahleckz

Ahleckz

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I know nothing about saving, because I haven't ever been in the position to save. However, I have recently got a lump sum which I keen to save.

I understand that the first thing I need to do (after paying off my debts!) is max out my cash ISA allowance. I've had a look at moneysavingexpert and Coventry Building Society are offering a 2.8% AER ISA with a 60 day notice period to withdraw. It seems the highest rate that I can find and I have little problem with the 60 day notice period. Are there any other suggestions? I'm not keen for a 3+ year fixed rate, but would consider 2 years.

Next is the Stocks & Shares ISA. I understand stock markets, but unsure of the best companies to use with a stocks and shares ISA. Can anyone recommend some to look at?

Next is what to do with the rest, would it be best to just plump it into the highest % savings account that I can find? If so, are there any good'uns. I've looked at the RBS website (who I bank with) and the saving accounts are pretty poor. Again, I'm not keen to lock my money away for that long.

As you can tell, I'm a total idiot at saving so just seeking some advice and some good offers around.

Clearly I'm planning on maxing out the Cash ISA before the 5th, and it's highly likely I'll max it out again on the 6th.
 
You're basically correct
- pay off debt
- intelligent spending (e.g. bigger house deposit)
- ISA
- savings account

shares carry risk - I tried it and was lucky to come out even. Wouldn't recommend.
 
[FnG]magnolia;23963756 said:
1. [TW]Fox will be here soon which is good for you.

2. How much are we talking about?
Click to expand...

I'm hoping that Fox would come in to be honest!

Around £35k. I'm not adverse to a little risk with some of it either, but don't know where to start with funds and stuff like that!
 
- Clear credit cards if not 0%.
- Clear any loans.
- Max ISA, the one you've found is about the best you will find (do it before April 5th and you can repeat on April 6th)
- Stocks and shares ISA > td direct investing (or similar) > Vanguard LifeStrategy fund that reflects your attitude towards risk
- Overpay mortgage
 
I recently opened a Stocks & Shares ISA with Hargreaves & Lansdown.

There are lots of managed funds to choose from dependent upon your attitude to risk. This would probably be the best port of call.

If you want to invest directly into companies you can do too. The more you trade the cheaper each transaction becomes, to start it's £11.95 to buy/sell plus the 0.5% government duty. There's more risk this way but you might, for whatever reason, want to buy shares in a specific company.

For the most part if you speak to an IFA they would spread it over managed funds and companies dependent on your requirements. You don't have to do particularly well with a stocks & shares ISA to beat the fixed rate deals most banks are offering. That said it works both ways so if you're not prepared to possibly make a loss then think it over.
 
There are several ISA's paying 2.5% atm but with zero conditions and full flexibility with zero notice withdrawl period - just take it from an ATM.

Given you are going to put £5640 in right now and then a similar amount again in April, the difference in interest that the missing 0.3% will end up being is trivial and not, IMHO, worth trading flexibility for.

So, that's about £11k done for. As for the rest - well, you can go the S&S ISA route but if you want something lower risk it's time to start looking at conventional savings accounts. They are mostly rubbish but if you get a 123 Current Account from Santander, it'll pay 3% AER on in-credit balances of up to £20k which nicely takes up the rest of your cash. It's also handy in that it pays 1, 2 or 3% cashback on various bills, too. There is a £2 monthly fee.
 
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Depending on your attitude to risk, you could consider putting your total allowance into a S&S ISA.

This past year mine made 20%, usual caveat though, stocks can down as well as up. My cash ISA will give 2.8%.
 
Check out Santander 123 current account, it actually pays 3% on balances over 3k. You've maybe spotted it getting a mention on MSE already. It's pretty good for cashback on utility bills too. I don't use this account but the 123 credit card is good for fuel/grocery cashback use.

Edit: too slow!
 
ringo747 said:
Check out Santander 123 current account, it actually pays 3% on balances over 3k. You've maybe spotted it getting a mention on MSE already. It's pretty good for cashback on utility bills too. I don't use this account but the 123 credit card is good for fuel/grocery cashback use.
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Yeah I've just opened one of these, plus the 123 credit card. It's worth noting that both have fees, so make sure the money you get back will more than cover them.
 
Jokester said:
Yeah I've just opened one of these, plus the 123 credit card. It's worth noting that both have fees, so make sure the money you get back will more than cover them.
Click to expand...

The fee is waived on the credit card for the first 12 months if you've got the Current AC.
 
Jokester said:
Yeah I've just opened one of these, plus the 123 credit card. It's worth noting that both have fees, so make sure the money you get back will more than cover them.
Click to expand...

I just got my first statement and got £14 cashback. Using the calculator I should get around £120/year from it. Better than nothing!
 
Why bother with ISA's when you could lock away your money for 3-5 years in savings accounts offering better rates?

BTW I am getting 8% interest per year, because I gave my money away to some odd online website.
 
Jokester said:
Depending on your attitude to risk, you could consider putting your total allowance into a S&S ISA.

This past year mine made 20%, usual caveat though, stocks can down as well as up. My cash ISA will give 2.8%.
Click to expand...

billysielu said:
Depends on your attitude to risk, you could consider putting it all on red.
Click to expand...

I'm more than happy to have some risk. But I have little interest in following the stock market and spending the time researching good potentials. I imagine there must be someone offering me the ability to buy into a fund and let them do the hardwork? I've just been looking at Hargreaves & Lansdown but it's information overload. Vanguard also seems to be out of my budget, but a touch less confusing.
 
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