best place to save 7k

best place to save 7k

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Discussion

Benspickup

Original Poster:

211 posts

131 months

Thursday 12th September 2013
quotequote all
I've got 7k in my current account , my aim is to grow it to around 9 or 10k for a car or house deposit. I will add to it when i can but what's my best option to put it to get any kind of return? Thanks Ben

B17NNS

18,506 posts

248 months

Thursday 12th September 2013
quotequote all
An ISA of some kind I'd have thought.

Simpo Two

85,529 posts

266 months

Thursday 12th September 2013
quotequote all
Although note that the tax saved on 0% is 0%. Don't be fooled by the 'woo tax free' thing; it may be better to consider other alternatives.

At current interest rates it will take about 1,000 years to make £7K into £9K.

zcacogp

11,239 posts

245 months

Thursday 12th September 2013
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Fundsmith has done me well of late, although it's a bit down at the moment.

But, be warned: it's a fund, and therefore your money is at risk.


Oli.

driverrob

4,692 posts

204 months

Thursday 12th September 2013
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Change that current A/C to Santander 123. Even after tax it beats any short-term ISA at the moment. Add on tax-free cashback from DD and, even with the £2 pcm charge, it's a winner. OH & I are clearing nearly £40 pcm on each of ours.

Benspickup

Original Poster:

211 posts

131 months

Thursday 12th September 2013
quotequote all
Sounds just the ticket, that's quite a decent amount earned off it. I can put some money in now and again but don't just want it to earn nothing in interest either! Trip to santander is on the cards unless anyone has another top idea? Will the bank give a idea of the interest earned each year?

driverrob

4,692 posts

204 months

Thursday 12th September 2013
quotequote all

Benspickup

Original Poster:

211 posts

131 months

Thursday 12th September 2013
quotequote all
It needs to be your current account for the good interest deal, and at least 500 going in a month to gain interest- in my case i would get zip as it would just be dribs and drabs going in, unless i had my wages paid into that account and then transferred into my joint account- that would work i guess!

Simpo Two

85,529 posts

266 months

Thursday 12th September 2013
quotequote all
I was going to say that earlier - I looked at Santander a year ago but when you see all the strings attached it's not worth the beans.

This is why it pays to read the brief. As a simple 'deposit' account it's not a runner, it's a gimmick that might suit PAYE folk with mortgages etc.

Benspickup

Original Poster:

211 posts

131 months

Thursday 12th September 2013
quotequote all
It needs to be your current account for the good interest deal, and at least 500 going in a month to gain interest- in my case i would get zip as it would just be dribs and drabs going in, unless i had my wages paid into that account and then transferred into my joint account- that would work i guess!

H22observer

784 posts

128 months

Thursday 12th September 2013
quotequote all
Simpo Two said:
Although note that the tax saved on 0% is 0%. Don't be fooled by the 'woo tax free' thing; it may be better to consider other alternatives.
.
100% this yes

My isa was earning 3.1%, then it dropped to 0.25%. I decided to upgrade my current account to a premium account costing £10 per month. Perks of the account are :

Free phone insurance (£25 excess on Androids), free breakdown cover, free travel insurance and some extended warranty thing (might be handy if the new XboxOne is as twitchy as the early 360s).
On top of this, they pay 3% on the first £2500 of savings.

I'll probably stick with this until something better turns up.... smile

Mr Noble

6,535 posts

234 months

Friday 13th September 2013
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^^^ I've just switched to this account too. Assuming you speak of the Nationwide Flew Plus account.

I was paying Vodafone £13 a month for iPhone insurance and now I pay £10 a month for my bank account and get iPhone cover (with the same excess) AND all the other goodies too. It's a great account.

I've already used the breakdown cover when my R8 shat its brakes. Was perfect, just called the Nationwide bank number and a flatbed arrived 20 mins later. Class.



To the OP. if you want to stand a chanc of a decent return, you could put the money into a stocks and shares ISA. You have to choose a fund to invest it in, but if you stick to passive trackers, your money will just track the FTSE 100 or 250 or whatever tracker you choos. It's quite fun having savings linked to the FTSE 100 as you get told how its doing every day on the news smile

H22observer

784 posts

128 months

Friday 13th September 2013
quotequote all
Yes. I believe it's the Flex Plus. yes

It's comforting to know that the breakdown cover is good. That will come in very handy on a car like mine with 131000 miles on the clock. smile

The phone insurance will be very useful because i have never had phone insurance before. Last year there was a hairy incident at Thorpe Park, where the ride attendant on Colossus misplaced my phone and then claimed that another customer may or may not have stolen it. About 5 hours later, the phone was answered by another member of staff, who didn't bother reporting it to park security and sounded quite disappointed that somebody had claimed it. The whole thing was very suspicious and i have decided that insurance is essential on an expensive phone with a 24 month contract.

i calculated that maximum interest on the account is worth around £73 per year. (before tax)

The Stiglet

2,062 posts

195 months

Friday 13th September 2013
quotequote all
B17NNS said:
An ISA of some kind I'd have thought.
GKP, GKP, GKP!!!

It's the only way hehe

Benspickup

Original Poster:

211 posts

131 months

Friday 13th September 2013
quotequote all
What on earth is that then? Lol

The Stiglet

2,062 posts

195 months

Monday 16th September 2013
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Benspickup said:
What on earth is that then? Lol
Gulf Keystone Petroleum. Have a look at the shares tipping thread wink

jshell

11,032 posts

206 months

Monday 16th September 2013
quotequote all
The Stiglet said:
Benspickup said:
What on earth is that then? Lol
Gulf Keystone Petroleum. Have a look at the shares tipping thread wink
The most over-ramped and hyped share of recent times! Looks to be trading up on hype alone...

Just IMO!

The Stiglet

2,062 posts

195 months

Monday 16th September 2013
quotequote all
jshell said:
The Stiglet said:
Benspickup said:
What on earth is that then? Lol
Gulf Keystone Petroleum. Have a look at the shares tipping thread wink
The most over-ramped and hyped share of recent times! Looks to be trading up on hype alone...

Just IMO!
Hehehe! Well, if I'd sold at the top of the high/hype on Tuesday last week I would have made 46.8% on my original investment. We'll see how much it's a castle-in-the-sky valuation in a couple of days at the interim results but it's true, it's not a share for everyone. Lots of different valuations and much still could go wrong geo-politically but the move to a full listing is imminent. There's an awful lot of oil that people want, the question is - how much are they willing to pay to get it?