Best ISA/ savings account for me?

[TheCarFather]

I just got an apprenticeship and would like to start saving, perhaps putting away £150-180 a month in an account I cannot take it out of within a certain time frame, what would the best thing to do with this money be, what sort of interest per annum could I get? Would I be better off investing in premium bonds instead?

Thanks

[Ginge R]

TheCarFather said:

I just got an apprenticeship and would like to start saving, perhaps putting away £150-180 a month in an account I cannot take it out of within a certain time frame, what would the best thing to do with this money be, what sort of interest per annum could I get? Would I be better off investing in premium bonds instead?

Thanks

Well done! Put aside an amount to make sure you're insured in the event of anything going wrong. If you save like mad, successfully, and lose your job or have an accident etc, your savings will go in the blink of an eye.

Second, put aside a few months income as an emergency fund. It's cheaper to pay for a knackered gearbox out of savings than it is to take out a loan. You don't have to do that all in one go; if you want to put aside money for longer term goalstoo, you can do.

Firstly, identify them (house, retirement, mid life crisis car etc) and once you've git those identified, start investing via your ISA/pension/other tax wrappers as you see fit, in funds that you think will help you achieve your goals. Instinctively, I'd say go for cheap funds a this stage - anything more will only see you lose achieving that sweet spot; critical mass and compound growth, through high costs (think trying to set off in 5th gear).

[TheCarFather]

Ginge R said:

Well done! Put aside an amount to make sure you're insured in the event of anything going wrong. If you save like mad, successfully, and lose your job or have an accident etc, your savings will go in the blink of an eye.

Second, put aside a few months income as an emergency fund. It's cheaper to pay for a knackered gearbox out of savings than it is to take out a loan. You don't have to do that all in one go; if you want to put aside money for longer term goalstoo, you can do.

Firstly, identify them (house, retirement, mid life crisis car etc) and once you've git those identified, start investing via your ISA/pension/other tax wrappers as you see fit, in funds that you think will help you achieve your goals. Instinctively, I'd say go for cheap funds a this stage - anything more will only see you lose achieving that sweet spot; critical mass and compound growth, through high costs (think trying to set off in 5th gear).

Thanks for all the advice, I will do that and look into what ISA to go for.

[CRB14]

Agree with Ginge on all his points. Have a read of the Monevator website about cheap tracker funds. I wish I'd started doing this when I got my job.

[Ginge R]

TheCarFather said:

Thanks for all the advice, I will do that and look into what ISA to go for.

No snags. If you need a steer, just pipe up.

[Sir Bagalot]

TheCarFather said:

I just got an apprenticeship and would like to start saving, perhaps putting away £150-180 a month in an account I cannot take it out of within a certain time frame, what would the best thing to do with this money be, what sort of interest per annum could I get? Would I be better off investing in premium bonds instead?

Thanks

Do you earn £1500 pm? If so head over to First Direct and open an account (claiming your £100 as you do), then open a regular savers account paying 6%

[Jockman]

Sir Bagalot said:

Do you earn £1500 pm? If so head over to First Direct and open an account (claiming your £100 as you do), then open a regular savers account paying 6%

Is the 6% the headline rate or the effective rate??

[Froomee]

Santander over £3k is 3% (2.4% for a basic rate tax payer), some requirements including 2 direct debits but probably the best available at the moment.

[Jockman]

Stick £80 in a pension - the Govt tops it up to £100 - that's an instant 25% return in my book.

Oh, but you can't access it until you're nearly dead.

Or stick it in a new Nigerian oil field - massive returns but you will be at the behest of Boko Haram.

Ignore Ginge - he's a sensible IFA

[KTF]

Fill up the high interest current accounts first. They have a higher rate (after tax) than an ISA.

Then in March, open an ISA and stick up to 15k from the current accounts above in it if you want to max your tax free (cash) allowance.

[Ginge R]

Jockman said:

Ignore Ginge - he's a sensible IFA

Pah. I'll have you know I'm getting my briefing notes ready to discuss an Excluded Property Trust tomorrow afternoon AND I'm listening to Led Zep at the same time.

Because this is how we roll in financial services.

[Jockman]

Ginge R said:

Pah. I'll have you know I'm getting my briefing notes ready to discuss an Excluded Property Trust tomorrow afternoon AND I'm listening to Led Zep at the same time.

Because this is how we roll in financial services.

Go Ginge Go !!!

All that's missing is a nice pinot noir or rioja

[Ginge R]

In this weather, that works. Maybe not for breakfast though. ALWAYS Asbach with cornflakes!

[K12beano]

Jockman said:

Ginge R said:

Pah. I'll have you know I'm getting my briefing notes ready to discuss an Excluded Property Trust tomorrow afternoon AND I'm listening to Led Zep at the same time.

Because this is how we roll in financial services.

Go Ginge Go !!!

All that's missing is a nice pinot noir or rioja

"Communication Breakdown"? That might be appropriate!?

[Ginge R]

Tonight, a small bottle of Jack to get in the mood for the game, and a few bottles of Keo. There may well be a communication breakdown AND a sense of humour failure mind, if the remote goes AWOL.

Not much work getting done tomorrow..

[Jockman]

Bit disappointing in the end, Ginge !!!

I was up until 3·00 am in Turkey watching it too