High interest, regular savings
Discussion
I've just paid a whack off my mortgage so have £600 per month 'spare' and would like to save it somewhere. Looking at the standard regular savers accounts, the interest is pitiful in most cases so I'm looking at something perhaps a little longer term - a fixed bond or something. But I just have no clue where to look.
The wife and I are both late 20's, both permanently employed and have no significant outgoings other than a couple of hundred quid mortgage and the usual bills etc, so a monthly income/interest/dividend isn't as important to us as long term growth. I'm not particularly risk averse per se (we paid the lump off the mortgage through a risky share purchase that went well!!), but would not like the thought of saving for ages only to find out I would have been better off keeping it under the bed!
Any thoughts on where is a good place for this kind of thing?
The wife and I are both late 20's, both permanently employed and have no significant outgoings other than a couple of hundred quid mortgage and the usual bills etc, so a monthly income/interest/dividend isn't as important to us as long term growth. I'm not particularly risk averse per se (we paid the lump off the mortgage through a risky share purchase that went well!!), but would not like the thought of saving for ages only to find out I would have been better off keeping it under the bed!
Any thoughts on where is a good place for this kind of thing?
The remaining mortgage we have has got one of those early repayment fees on it for the next couple of years, so I was thinking about putting the monthly money somewhere and then paying it off once the term has ended. I suppose it depends on if the return would outweigh the penalty really, not sure it would though. Hmmmm...
Both take up a first direct bank account in your individual names.
Both apply for one of these
http://www2.firstdirect.com/1/2/savings/regular-sa...
Maximum deposit 300 per month, no withdrawals, 8% AER.
Mine matured on Wednesday last week, just took out another
FD also won top customer service award, qualify for UK protection, give you £100 (each) for changing to them. No brainer
If you don't earn 25k each, just bounce some money between accounts. Must be 1500 or so
Both apply for one of these
http://www2.firstdirect.com/1/2/savings/regular-sa...
Maximum deposit 300 per month, no withdrawals, 8% AER.
Mine matured on Wednesday last week, just took out another
FD also won top customer service award, qualify for UK protection, give you £100 (each) for changing to them. No brainer
If you don't earn 25k each, just bounce some money between accounts. Must be 1500 or so
Open a stocks and shares ISA. Put the monthly amount in. Every three months make one purchase with the accumulated amount (this keeps your dealing costs down). Spread it around a bit - maybe one Vanguard tracker, a few high yield FTSE (Vodafone, Aviva, National Grid, Centrica, Shell) and one higher risk purchase of something which catches your eye, either a fund or a single stock.
That gives you tax free income and gains, sufficiently liquid stocks that are suitable for a shorter term holding, and some exposure to a higher risk but at a level you control. Warning - you may come out of it with less than you would have had if you had kept your money under the mattress, but it's a more interesting approach.
That gives you tax free income and gains, sufficiently liquid stocks that are suitable for a shorter term holding, and some exposure to a higher risk but at a level you control. Warning - you may come out of it with less than you would have had if you had kept your money under the mattress, but it's a more interesting approach.
Teddye4687 said:
Both take up a first direct bank account in your individual names.
Both apply for one of these
http://www2.firstdirect.com/1/2/savings/regular-sa...
Maximum deposit 300 per month, no withdrawals, 8% AER.
Mine matured on Wednesday last week, just took out another
FD also won top customer service award, qualify for UK protection, give you £100 (each) for changing to them. No brainer
If you don't earn 25k each, just bounce some money between accounts. Must be 1500 or so
This. 8% isn't to be sniffed at. Both apply for one of these
http://www2.firstdirect.com/1/2/savings/regular-sa...
Maximum deposit 300 per month, no withdrawals, 8% AER.
Mine matured on Wednesday last week, just took out another
FD also won top customer service award, qualify for UK protection, give you £100 (each) for changing to them. No brainer
If you don't earn 25k each, just bounce some money between accounts. Must be 1500 or so
ellroy said:
The amount of complaints from people assuming 8% on the total amount invested in these accounts as they assume 8% on the full £3,600 for 12 months has been staggering.
Are there a lot of stupid people around? Used these many times and they are great if you don't have a lump sum to invest.The best one was a couple of years ago before the world went belly up, had a Halifax one at 12% and a Halifax credit car at 0% for new spending, guess where the spending went
12% on the Halifax's own money was great, obbiously only for the first month...ellroy said:
8% great marketing, the max amount is £300 per month, no partial withdrawals are allowed.
The amount of complaints from people assuming 8% on the total amount invested in these accounts as they assume 8% on the full £3,600 for 12 months has been staggering.
They couldn't make it much clearer. They even give an example of how much you would earn if depositing the full amount each month.The amount of complaints from people assuming 8% on the total amount invested in these accounts as they assume 8% on the full £3,600 for 12 months has been staggering.
I can't see how it's a bad deal? If you have a £3600 lump sum, drip feed that from a standard savings account into the FD savings account. You're then earning interest on both. The 8% works out at c. 4%, but how's that any different to drip feeding £300 a month into an account only paying 3% interest? You'd only get 1.5 at year-end?
I guess, going further, you could also utilise Halifax's bank account, which pays £5 per month for simply paying in £1k per month.
So bounce around £1000 between two accounts and that should net you another £120 a year.
Edited by Teddye4687 on Monday 19th November 17:30
supersport said:
Are there a lot of stupid people around? Used these many times and they are great if you don't have a lump sum to invest.
The best one was a couple of years ago before the world went belly up, had a Halifax one at 12% and a Halifax credit car at 0% for new spending, guess where the spending went 12% on the Halifax's own money was great, obbiously only for the first month...
We're surprised by how many people are expecting say £800 interest on £10k saved and it can take some explaining as to how it works. It's not a bad account though as long as you understand it.The best one was a couple of years ago before the world went belly up, had a Halifax one at 12% and a Halifax credit car at 0% for new spending, guess where the spending went
12% on the Halifax's own money was great, obbiously only for the first month...Gassing Station | Finance | Top of Page | What's New | My Stuff