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Income Bonds - Yay or Nay?

Hey y'all.

I'm currently trying to decide what to do with my money. I just got a new job, and after taking out rent to my mother and CC payments, I'm left with about £700 a month to play with. I've decided to split it into easy chunks of £50 so I can move it around more easily.

I've decided to but about £300 a month into my main current account which is for "living money", £150 into a regular saver's account and £150 into an instant access savings account, which leaves me with £100 a month to play with.

Is it worth saving this up until I have enough to purchase bonds? Because of my simple-ish budget, I would have £100 a month for as long as my pay stays the same, so I could potentially get £1200 a year in bonds.

Should I do this? If not, could you suggest me an alternative?

Cheers,

Joe
Debts
[STRIKE]CLK - £100[/STRIKE] | Jacamo - £372.72 | H3G - £20 | Capital One - £350 | Smartpig - £350

Comments

  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Not sure what sort of bond you're thinking of, but regular savers normally run for a year, so you may as well put an extra £100 into the regular saver for now.

    Then at the end of 12 months you'll have a lump sum and you can look at what's available at the time.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • dunstonh
    dunstonh Posts: 121,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You will need to explain what you mean by income bonds. Bond is one of the most misused terms going with so many different types of bonds doing very different things.

    An Income bond could be an investment bond that pays a regular monthly payment. It could be a deposit based NS&I product paying an income. In theory, it could also be interpreted as a corporate bond or a corporate bond fund.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • lawriejones1
    lawriejones1 Posts: 305 Forumite
    Part of the Furniture Combo Breaker
    As odd as this may seem, if you're saving for your future, then something like a SIPP might be a good way of doing it. I personally had lots of savings goals eaten away by holidays, car repairs, girlfriends and guitars.

    At the same time as stashing away money into instant access accounts, I am also putting away £100 a month into a SIPP (on top of my workplace contribution) which - after a few years of doing so - has really helped me to think about the long-term aims of saving money.

    Obviously at 55 I will still blow 25% on a motorbike.
  • Freecall
    Freecall Posts: 1,337 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    As odd as this may seem, if you're saving for your future, then something like a SIPP might be a good way of doing it. I personally had lots of savings goals eaten away by holidays, car repairs, girlfriends and guitars.

    At the same time as stashing away money into instant access accounts, I am also putting away £100 a month into a SIPP (on top of my workplace contribution) which - after a few years of doing so - has really helped me to think about the long-term aims of saving money.

    Obviously at 55 I will still blow 25% on a motorbike.

    Obviously ;)
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