Best way to build up my savings.

Jakbanks94 · 26 July 2017 at 11:04PM

Hello,

I'm just wondering what is the best way to build up my savings and how it worked for other people..

I recently inherited 21k of which I invested 14k in a fixed rate 1.85% savings account with Paragon Bank for a year.

I used the remainder to clear any debts I had and give me a fresh start in life, I'm 23 and have plans to aim for a house of my own by the time I hit 30.

I'm going to open a help to buy ISA with the £1200 opening deposit and keep the running and I also have a money farm account, but unsure whether that's a good investment?

Any suggestions would be good

Neil_Jones · 26 July 2017 at 11:27PM

Well the easiest way to build savings is simply not to spend anything.

In practice though, that's kind of difficult so the next best thing is to find the best interest rates for whatever amounts you have left - such as the 5% Nationwide current account on £2.5k for example and the associated regular savers - 5% with Natwest, Santander, First Direct & M&S, or the Virgin ones at 2.25%.

Help to Buy is one of the better avenues for savings, though the rates are poor now compared to what they used to be - they were offering 4% at launch from at least two providers. You won't get that now, think the best available is 2.27%.

Money Farm is a Stocks and Shares ISA, in theory it should perform better than a Cash ISA but nothing's guaranteed and you should aim ideally to hold it for at least five years. You may get back less than you put in is the other thing to be aware of.

Best way to build up my savings.

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