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Soon to be debt Free now it's time to save
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barcabod
Posts: 13 Forumite
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
Any help would be gratefully appreciated
Thanks
Bill
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

Any help would be gratefully appreciated
Thanks
Bill
0
Comments
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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?0 -
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.0
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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?
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 interest0 -
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.0 -
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.0 -
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 effort0 -
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?0 -
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.0
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