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What saving plan is best for me?

redslm
redslm Posts: 29 Forumite
in Savings & investments
I'm fairly new here so forgive me if I provide too much or too little information!

I'm a newly single stay at home mum of two children. Over the months since becoming a single parent I have been putting a little bit of money away monthly and now have roughly £1400 which I would like to put somewhere to hopefully gain a little bit of interest. It won't be in saving for long, I will need to use it all about summer next year.

My question is - is it actually worth moving it into a separate account? (it is currently sitting in an HSBC instant access savings account). And if it IS worth moving, where to?

Thanks for ANY help :)
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Comments

  • talana
    talana Posts: 1,077 Forumite
    redslm wrote: »
    My question is - is it actually worth moving it into a separate account? (it is currently sitting in an HSBC instant access savings account). And if it IS worth moving, where to?

    Well, what interest rate are you currently getting at HSBC?
    If you can get a better rate elsewhere then yes, it's worth moving.
    Do you have a cash ISA? If not, consider opening a competitive one for tax-free interest (so with like-for-like interest rates, it's a better deal than a normal instant access account).
  • snoppydog
    snoppydog Posts: 52 Forumite
    edited 19 November 2009 at 6:15PM
    QUOTE=redslm;discussion/2090927]I'm fairly new here so forgive me if I provide too much or too little information!

    I'm a newly single stay at home mum of two children. Over the months since becoming a single parent I have been putting a little bit of money away monthly and now have roughly £1400 which I would like to put somewhere to hopefully gain a little bit of interest. It won't be in saving for long, I will need to use it all about summer next year.

    My question is - is it actually worth moving it into a separate account? (it is currently sitting in an HSBC instant access savings account). And if it IS worth moving, where to?

    Thanks for ANY help :)[/QUOTE]

    Hi redslm,

    I would say to put it in an ISA account, so your be earning some interest (not much at the moment) and its tax free. Most ISA's are instant access.
    Offically Debt Free as of 27th May 2009.

    Saving for first house.

    Crazy Clothes Challenge 2011
  • kingmonkey
    kingmonkey Posts: 846 Forumite
    Part of the Furniture Combo Breaker
    OMG the Interest on the HSBC Instant Access Savings is 0.05% AER. That is really rubbish.

    Interest earned in HSBC Instant Access Savings to August = 53p (gross) 42p net
    Interest earned in citibank flexible saver (3.3%AER) account to August = £34.65 (gross) £27.72 net
    Interest earned in First Direct cash e-ISA (3% AER) to August = £31.50

    I think its defo worth transferring.

    (above figures are rough and ready)
  • redslm
    redslm Posts: 29 Forumite
    Wow thanks so much for your help, I will definitely transfer the money then!!

    Thanks again, that's really helpful :)
  • redslm
    redslm Posts: 29 Forumite
    Oh I meant to say that I don't currently have a cash ISA, so that's what I'll do with it :) Thanks
  • Newbie2saving
    Newbie2saving Posts: 867 Forumite
    I had my money in the HSBC instant access savings account and until recently I have only just become aware that it was appalling. I would definitely advise you to move it.

    All the best...
  • Newbie2saving
    Newbie2saving Posts: 867 Forumite
    redslm wrote: »
    Oh I meant to say that I don't currently have a cash ISA, so that's what I'll do with it :) Thanks

    Have a look at the discussions and the best deals here...http://forums.moneysavingexpert.com/forumdisplay.html?f=18
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    First Direct E-Isa sounds like the perfect vehicle for you.
  • redslm
    redslm Posts: 29 Forumite
    Thank you SOOOO much everyone. I have applied online for a First Direct E-Isa and now just need to wait to hear from them to see if my application has been successful.

    I just wanted to thank everyone for all your replise :)
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Good luck with your savings.

    You can save up to £3,600 in your ISA account before April when you will be able to save an additional £5,100
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