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Savings account

Discussion in 'Personal' started by pink_reindeer, Dec 30, 2011.

  1. pink_reindeer

    pink_reindeer Occasional commenter

    Can anyone recommend a good one for saving about 300-400 pounds a month? It is for a deposit on a house, so won't need instant access or anything? I have tried doing an internet search, there are soooooo many choices!!??
     
  2. pink_reindeer

    pink_reindeer Occasional commenter

    Erm....no!
     
  3. Suit yourself...I do a lovely line in ISAs ,TESSAs and BSHFAs.
     
  4. Why not go and see a financial advisor who can direct you to the best sort of account for you?

    Or, maybe look at money supermarket or money saving expert web sites?

     
  5. doomzebra

    doomzebra Occasional commenter

    Whichever one you choose, make sure you send me the details and $250 so that I can process your share of $31.5 million
     
  6. harsh-but-fair

    harsh-but-fair Lead commenter

    Jeez, do you really need an IFA to tell you which account to open?
     
  7. Ophelia 9

    Ophelia 9 New commenter

    money supermarket really is a good place to look - they have information about all the different types of savings accounts.
    Probably you will get your best rate on a fixed-term account - it may be worth signing up to one with a bonus for a year or eighteen months and then moving your money to a new one if you are still saving when the rate goes back to normal - and if you don't already have an ISA then that's likely to give you the highest return on your investment.
    Although it seems like a hassle to move your savings around it really is the way to maximise your interest.
     
  8. Piranha

    Piranha Star commenter

    So much depends on when you think you will need the money. If it is not for a few years I would suggest that you open a regular savings account or two, depending on the maximum payment. A quick Google search will help you find them; many banks have preferential terms for their customers, so your own bank would be a good start. Typically, these accounts revert to low interest rates with no notice after a year. When that happens, transfer the money to a fixed rate bond for however long you can tie up the money for. Then, start again with new regular savings accounts.
    If you can find a no-notice account with a very good introductory rate, that would be an alternative.
     
  9. The first place you should be investing is an ISA as that will give you tax free interest. You can save over £5000 a year and if you can tie your money up for a one year or 2 year fixed rate which will give you better interest. Compare rates here:
    http://www.money.co.uk/savings-accounts/cash-isas.htm
     
  10. magic surf bus

    magic surf bus Star commenter

    I'd suggest an ISA with a special 12 month introductory offer of increased interest, then transfer the balance to a similar product with another bank after 12 months (if one is available). If not, switch it to a 12 month bond with a good interest rate, for example the AIB one currently offering 3.5%. Many bonds however involve one-off deposits that you can't add to during the year, and you can't withdraw the money during the 12 month period.
     
  11. jacob

    jacob Lead commenter

    Many accounts will give you an "introductory rate" which drops substantially after a period of up to twelve months. The robbing ***** want your money but hope that you will not notice the rate drop after a year or so and will leave it with them at a paltry rate. If you have the time/nous/bloody mindedness to switch money about you can get and keep up with the best rates going, but ALL rates are way below inflation, so your money actually diminishes with time. In some circumstances, depending on the rates of inflation, investment, and borrowing you can actually get a better deal by buying something big on a bank loan (not hp or other ripoff). If buying a car the best deals will probably be next month as the winter and post christmas period are a bit desperate for car dealers, and the change of plate makes them want to shuffle of pre-reg cars to hit their february quota.
    Your own bank may be offering some sort of preferential rate for monthly savers in new accounts. Some even seem to actually want to look after their existing customers!
     
  12. magic surf bus

    magic surf bus Star commenter

    Having done some simple sums, it would appear that any tax-free ISA offering less than 2.8% is not going to earn you as much net interest as a taxed Bond offering 3.5% or better. This is because a fifth of your Bond's interest (0.7%) would go in tax. However, as mentioned above, Bonds need one lump sum paying in, then effectively locking away for a year, so they're like a second line of investment after building up an ISA for 12 months to benefit from the introductory interest rates.
     
  13. pink_reindeer

    pink_reindeer Occasional commenter

    Thanks all.
     

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