Advice re: best way to save

BrookMan68
BrookMan68 Posts: 9 Forumite
in Savings & investments
Hi there,

Was looking for some advice regarding starting to regularly save. I'm 16 and have a Santander 123 Mini with £2000 max in it to get the 3% interest. I'm also feeding the 123 Regular eSaver with the max £200 p/m at 5%. I was wondering would there be any other places to start regularly saving into? Current savings rates aren't appealing. My parents have always swore by savings policies sold by the likes of Pearl (now Phoenix life) - but after looking around, friendly societies do seem handy but aren't endorsed by many and branded as obsolete and worthless! Any suggestions where I could regularly save into i.e monthly direct debit or standing order?

Thank you! Sorry for the long post! :)
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Comments

  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Congratulations on saving at so young an age.

    The first few posts on
    http://forums.moneysavingexpert.com/showthread.php?t=608697 are regularly updated, and the last page or so has discussion on (mostly) new offers. Note that some of the savers require an associated current account which is only available to those 18+.
    Eco Miser
    Saving money for well over half a century
  • tibbles209
    tibbles209 Posts: 169 Forumite
    First Post First Anniversary Combo Breaker
    What are you saving for?

    If you are just putting money away without a specific purpose for it in the next few years its worth looking into passive investing. Time is magic when it comes to investing and at 16 thats something you have plenty of.

    I'm 27 now, just getting started with investing and kicking myself that I didn't start a decade ago.
  • BrookMan68
    BrookMan68 Posts: 9 Forumite
    ::beer: Thanks for the replies! Yeah I'm not really saving for anything specific - just would like to have a nice nest for someday when I do really need it :D

    How does the passive investing work?
  • elephantrosie
    elephantrosie Posts: 467 Forumite
    well done. i certainly do not have that much of money at 16!
    Another night of thankfulness.
  • ricky_v
    ricky_v Posts: 330 Forumite
    First Post First Anniversary Combo Breaker
    You can eek out 3.5% with Nationwide and Barclays, the top payers are for under 16's

    http://www.moneysavingexpert.com/savings/child-savings-tax-free#saffron

    As soon as you turn 18 pay into a LISA/HTB ISA for your first property purchase as the state pays 25%. Also apply for the adult current accounts/reg savers currently paying 5%. And get a credit card (Aqua/Vanquis will do), spend a few quid on what you'd normally get on it and PAY THE STATEMENT BALANCE OFF IN FULL every month.

    Then in your early 20's you'll be able to have your own house paid for by a lovely sizable deposit subsedised by the state and an easy to aquire mortgage as you've built up a credit history from the credit card you got at 18, then look at investing.:)

    BTW well done on saving at 16!:T
  • BrookMan68
    BrookMan68 Posts: 9 Forumite
    :j Thanks! Ah just when you mention nationwide - I've got the FlexOne account and the regular saver at 1.5% and 3.5% respectively - there's around £200 in the C.A as I've been drip feeding the saver - in total by October there will be £1000 in the saver. :rotfl:
  • stoozie1
    stoozie1 Posts: 656 Forumite
    HTB ISAs can be opened from age 16.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
  • ricky_v
    ricky_v Posts: 330 Forumite
    First Post First Anniversary Combo Breaker
    HTB ISAs can be opened from age 16.

    Ahh I was looking at the LISA criteria. :)

    Well BrookMan68, there's a scheme with free money you can start to save into right now.

    https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
  • Zola.
    Zola. Posts: 2,204 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Good for you - I wish I was as wise as you at 16!

    I would also recommend putting some money into a global passive investment fund and let it sit there, dont touch it and let it grow over time.

    I am 32 and I only started this at 30, I wish I had started at 16!
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    BrookMan68 wrote: »
    My parents have always swore by savings policies sold by the likes of Pearl (now Phoenix life) - but after looking around, friendly societies do seem handy but aren't endorsed by many and branded as obsolete and worthless!
    I'm afraid your parents are wrong. These plans are obsolete and worthless for someone in your circumstances.

    In the very early days of this sort of policy, they generated excellent returns. The returns were in part generated by the insurance market - and insurers were doing very well.

    People thought that would continue. It didn't. Later policies returned much less than expected due to the insurance market becoming weaker and they ended up with a massive shortfall.

    People used to take out interest free mortgages, and pay into these policies as their plan for paying off the capital at the end of their mortgage term. As the plans underperformed, lots of people were left with a hefty shortfall rather than having paid off their mortgage.

    That - in a nutshell - is what the interest-only mortgage mis-selling scandal is about.
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