Recommendation for regular savings policy.

[A911DOM]

I need some ideas on what sort of account / savings 'policy' etc I could set up to enable a mate to pay off some outstanding cash to me - and also allow me to earn something back whilst waiting for the amount to accumulate.

The amount is likely to take 1-2 years to accumulate and ideally there would be no penalties attached for dipping into the cash as and when I felt like - but as said originally its not me whos paying into it.

Thought you chaps may be able to come up with something more inventive than a bank account, and a mate deciding as and when he wants to pay off his 'dues'.

Cheers

Dom

[Brown and Boris]

A911DOM said:

I need some ideas on what sort of account / savings 'policy' etc I could set up to enable a mate to pay off some outstanding cash to me - and also allow me to earn something back whilst waiting for the amount to accumulate.

The amount is likely to take 1-2 years to accumulate and ideally there would be no penalties attached for dipping into the cash as and when I felt like - but as said originally its not me whos paying into it.

Thought you chaps may be able to come up with something more inventive than a bank account, and a mate deciding as and when he wants to pay off his 'dues'.

Cheers

Dom

I have just had 12 months of putting £250 a month into Halifax regular saver account. The interest was around 10% but the max you could put in was £250 a month. Other than that an ISA?

[A911DOM]

Thanks for the response - this is where my mind went initially actually.

I wondered about an ISA, but not having looked into things at all really am worried that my mate will need to set this thing up (in his own name) in order to be able to pay into it and I wont have any control, or any benefit from the resulting monies... How does that work?

Basically the chap has run up a bit of a debt over a couple of years and being a mate Ive let it slide for a while - but now, its time to start seeing some benefit for my initial generousity.

Mates and money, not the best mix - but we had a damn good chortle at the time but there comes a time to call in the favours - especially as we are all feeling the pinch now.

My initial thoughts were to wait for a 'lump sum' back - but I cant see this amount being easily achievable. So, something regular and small payments - but one that can be monitored by both parties and will definately hold some sort of benefit over and above the amount put in?

[A911DOM]

Brown and Boris said:

I have just had 12 months of putting £250 a month into Halifax regular saver account. The interest was around 10% but the max you could put in was £250 a month. Other than that an ISA?

PS - Whats the saving going towards, something with a fuel filler cap I hope!?

[bleesh]

[/quote]

I have just had 12 months of putting £250 a month into Halifax regular saver account. The interest was around 10% but the max you could put in was £250 a month. Other than that an ISA?
[/quote]

Of course, don't forget that the full 10% rate will only be earned on the FIRST £250.
The second will earn 11/12 of the 10%, the third will earn 10/12 of the 10% etc etc.

You'd actually achieve a little of 5% on the whole sum, I think - which is actually probably not that bad in the scheme of things.

Steve