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Soon to be debt Free now it's time to save

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barcabod
barcabod Posts: 13 Forumite
in Savings & investments
My wife and I will soon finish our mortgage
So from October 2014 ( after all other debts are cleared including a big holiday:j)
We will be able to put a minimum of £1200 per month away in a savings account.This amount will be absolutely spare so we can do a no access account if that is better?
We have an Isa with around £1000 in it so I don't think this will have a big bearing on things.
Could anyone suggest the best way to go?
I have looked at the nationwide account and a few others but I am truly flummoxed as what to do.Would we be better opening 2 different accounts or 3 and divide the £1200?
I am not as you may have guessed very savvy with this saving as I have never had enough to save :D
Any help would be gratefully appreciated

Thanks
Bill
«13

Comments

  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    How old are you both
    What if any dependants do you have that rely on your funding
    How big is your emergency cash fund (£1,000 in an ISA?)
    What pensions do you have
    What tax bands are you both in
    What if any larger expenses have you planned for the next 5-10 years
    What is your attitude to risk - e.g. How much of your £1,200 a month are you happy to lose if there is a chance of making a lot from it?
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If it's the sort of mortgage where you can "draw down" more capital at your discretion, you'd be a mug to close it.
    Free the dunston one next time too.
  • barcabod
    barcabod Posts: 13 Forumite
    edited 1 January 2014 at 12:08PM
    innovate wrote: »
    How old are you both
    me 49 wife 44
    What if any dependants do you have that rely on your funding none
    How big is your emergency cash fund (£1,000 in an ISA?) cash fund up to £3000
    What pensions do you have
    my pension is pretty bad but my wifes is finishing salary
    What tax bands are you both in
    lower tax band
    What if any larger expenses have you planned for the next 5-10 years not planning on spending big
    What is your attitude to risk - e.g. How much of your £1,200 a month are you happy to lose if there is a chance of making a lot from it?
    Do not want to risk any money


    The money we plan to save is half of what is available after all bils are paid so we can just put it away and forget about it.
    I would not want to risk any of the money , just put it somewhere it will earn a steady interest
  • barcabod
    barcabod Posts: 13 Forumite
    kidmugsy wrote: »
    If it's the sort of mortgage where you can "draw down" more capital at your discretion, you'd be a mug to close it.

    Sorry I dont understand draw down
  • planteria
    planteria Posts: 5,322 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    in that case just using the very best savings accounts you can get is your best option.

    look at the Regular Savers thread. and look at use of Current Accounts as Savings Accounts alongside.
  • planteria
    planteria Posts: 5,322 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    barcabod wrote: »
    The money we plan to save is half of what is available after all bils are paid so we can just put it away and forget about it.
    I would not want to risk any of the money , just put it somewhere it will earn a steady interest

    the problem with that is that interest rates are so low. if you can afford to put the money aside for a period of years then, probably, you would be better off to invest it....but this involves some risk.
  • jem16
    jem16 Posts: 19,594 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    barcabod wrote: »
    Do not want to risk any money

    Your plan of using only savings schemes is replacing investment risk with inflation risk and shortfall risk.

    You say your pension is "pretty bad". Can you explain more about this pension?
  • barcabod
    barcabod Posts: 13 Forumite
    Thanks Plantera

    I have been looking at the Nationwide flexi which allows £500 per month to be deposited.
    Can we open 2 of these 1 in each name ?
    Then put the other 200 into say a halifax account?

    Again thanks for your time and effort
  • barcabod
    barcabod Posts: 13 Forumite
    jem16 wrote: »
    Your plan of using only savings schemes is replacing investment risk with inflation risk and shortfall risk.

    You say your pension is "pretty bad". Can you explain more about this pension?

    My pension is from wok and will pay me £30 per week when I am eligible to claim it

    I think I understand what you mean with risk
    If inflation is say 3 per cent I need to earn over 3 per cent to not fall behind what the money is actually worth? right?
  • jem16
    jem16 Posts: 19,594 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    barcabod wrote: »
    My pension is from wok and will pay me £30 per week when I am eligible to claim it

    So can you pay more into this pension? Does the employer match your contributions?
    I think I understand what you mean with risk
    If inflation is say 3 per cent I need to earn over 3 per cent to not fall behind what the money is actually worth? right?

    Yes but over 3% net and not gross.

    There are very few savings schemes paying that.
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