Best options for my savings

[Craikeybaby]

When I paid off my student loan last year I started putting the money that I had been paying off that into a savings account, however that was just a regular savings account and I feel this isn't ideal, if possibl I'd like it to earn more interest.

To set the scene, there is about £1,500 in there, and £150 extra going in each pay day. I already have an ISA, but I'd prefer to keep this money separate, as the money in (and going into) the ISA is for a new car in the next few years. The student loan money I see as being more of a rainy day fund, but it may as well earn some decent interest too!

With the new ISA limits I'm nowhere near reaching the limit, so would a stocks and shares ISA be suitable to run alongside my cash ISA for my student loan money. Or is there any other sort of investments I should be looking at?

Edited by Craikeybaby on Monday 27th April 11:35

[Craikeybaby]

I can't afford to lose all of it, but if it takes a slight dip I could live with that. I'd say 8 out of 10 on the risk scale.

For comparison, I've got my pension invested 10% low risk, 50% medium risk and 40% high risk.

[Craikeybaby]

Thanks! I've had a look back at previous threads, but my brain overheated. If a stocks and shares ISA is the way to go, I'll ask my IFA about them.

[Craikeybaby]

I've spoken to my IFA and filled out a risk questionnaire, which I think came out with progressive (or dynamic) something. I can't redo the form, or find a list of the possible outcomes. So now I'm just waiting to set up a meeting to discuss further with him. In the mean time I've been reading various links from this forum and have got a better idea of what I think I want.

[Craikeybaby]

The starting with £65k one? I've skipped all the buy a house stuff, and found some useful information towards the end about S&S ISAs.

[Craikeybaby]

I've been looking at one of the Vanguard LifeStrategy funds, probably through Cavendish, but will see what the IFA can offer.

[Craikeybaby]

Probably not that much - will look into that. Have our joint accounts with Santander and have a decent amount in savings.

[Craikeybaby]

IFA has been dragging his heels getting back to me, so I think I'm going to go down the Cavendish/Vanguard Lifestrategy 60 route.

Still planning on switching the joint account to the Santander 123 account, as we have got a decent amount saved up together for the wedding, which is earning virtually no interest.

[Craikeybaby]

GrizzlyBear said:

The longer people leave their money in low interest rate accounts, the lower interest rates will get. Move it quick a d start earning some interest on your hard earned money.

Edited by GrizzlyBear on Tuesday 19th May 10:38

It has now been moved! It feels strange having our savings in what is our current account, but it is worth it for the extra interest. As our current account was with Santander it was dead easy to move it.

With regards to my Stocks and Shares ISA I have set that up (ish) with Cavendish/Fidelity could I have gone direct to Fidelity to save the commision? I'm struggling to log onto the website, but as I haven't had the paperwork yet that might be the reason.

[Craikeybaby]

Just so that I can come back later and quantify these changes:
The last 3 months interest payments on the Santander joint savings account: £2.72, £2.44 and £2.77
The last 3 months interest payments on the Natwest E Savings account £0.27, £0.32 and £0.37.

[Craikeybaby]

Well, after a month(ish) I'm £30 down on the S&S ISA (but I guess it is a long game), but got £21.50 interest/cashback on the Santander 123 account - so thanks for the recommendation for that.

[Craikeybaby]

Still £27 down on the Vanguard life strategy fund, but I guess 3 months is too soon to be changing things about, as this is meant to be a longer term investment. Is there a good tool for tracking the value of these sort of funds? I have got it on the stocks app on my iPhone, but it only seems to be updated once a week.

The Santander 123 account is still going well, we've just put a few big on 0% finance to keep money in the account for as long as possible.

[Craikeybaby]

Simpo Two said:

Awesome attention to detail! IFAs will hate you

Could explain why our usual one avoided my calls/emails about this. I bet he'll be in touch soon enough when the mortgage needs renewing though

[Craikeybaby]

I didn't even get that far with the IFA! That was all sorted out myself, as the IFA didn't get back to me about setting up investments.

I realise that investments go up as well as down, and as I am investing monthly some of the investments will be at the lower price.

[Craikeybaby]

I didn't know the name for it, but thanks!

[Craikeybaby]

After putting my savings into a S&S ISA days before the China crash, my ISA is now worth more than I've paid in to it. So probably back to where I would have been if I left it in my regular savings account. Hopefully it continues increasing now.

The Santander account is doing much better £120 up, so once again, thanks for the recommendation on here!

[Craikeybaby]

I thought I'd update this 12 months out from setting up the ISA.

On the stocks & shares ISA I'm £61.26 up on what I've paid in, but most importantly there is money going in automatically each month and I'm over halfway to my initial target.

Thanks to this thread we made just under £200 on the money that had been set aside for our wedding & some projects on the house, by switching to the Santander 123 account. Now our saving have been depleted the 123 isn't worth the fee for us, so got £100 for switching to first direct.

Edited by Craikeybaby on Tuesday 21st June 13:02

[Craikeybaby]

That was based on £125 per month, with £1k to start, it did get up to £100 up last week, but has dropped back a bit now.

[Craikeybaby]

No! I was expecting it to have gone down, but it has increased slightly over the last few days.