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  • FIRST POST
    • ambitiouspanda
    • By ambitiouspanda 17th Oct 16, 7:43 PM
    • 32Posts
    • 36Thanks
    ambitiouspanda
    Newbie saving - what bank?
    • #1
    • 17th Oct 16, 7:43 PM
    Newbie saving - what bank? 17th Oct 16 at 7:43 PM
    So, every month I put aside between £1000-2000 roughly £1500. Yes, every month I earn about £2500 but I'm living at home with my parents.

    Lucky me. At first I wanted to buy ASAP but I think I'm just going to continue saving and hopefully meet someone and buy something together in London. God willing.

    So, I'm with Lloyds and they offered me a 2 year ISA with a fixed rate of either 0.5 or 0.05.. Probably the latter

    Do any of you home buyers/savers/owners recommend a bank and a type of account?

    I'm also opening a another cash ISA 1st Jan once I get the ISA for my mortgage for this year! Until then my savings will just go into normal savings account.

    Open to all advice...

    I had a target for £7000-9000 savings but life.. should definitely save £6000 though.
    **2017 G O A L S**
    1) Save £18,000 on the "Save 12k for 2017" challenge!
    2) Save £1000 from day-to-day spending.
Page 1
    • xylophone
    • By xylophone 17th Oct 16, 8:36 PM
    • 20,641 Posts
    • 11,815 Thanks
    xylophone
    • #2
    • 17th Oct 16, 8:36 PM
    • #2
    • 17th Oct 16, 8:36 PM
    A Nationwide Flexdirect and monthly saver and a couple of Tesco current accounts for a start.

    Have you opened a Help to Buy ISA?Lifetime ISA from next year.

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf
    • Eco Miser
    • By Eco Miser 17th Oct 16, 11:16 PM
    • 2,676 Posts
    • 2,493 Thanks
    Eco Miser
    • #3
    • 17th Oct 16, 11:16 PM
    • #3
    • 17th Oct 16, 11:16 PM
    Generally speaking, you should not have a cash ISA, the rates are terrible and you can earn £1000 in interest before you pay tax on it (£500 for higher rate payers) anyway. If you do have a cash ISA you can usually continue with the same one, no need to open another.
    A Help To Buy ISA is different, the government gives you a big bonus when you buy, which swamps most other considerations.

    Banks, have lots of them, starting with xylophone's suggestions, and continuing with the others listed here. Note that some rates are dropping in January, so that table may be a little misleading.

    Lloyds Bank is currently paying me 4% on over £5000 - you've missed the boat on that but 2% (3% on their regular saver) is way better than that ½% you mention - and 5% is even better (Nationwide, First Direct, HSBC, M&S Regular Savers).
    Eco Miser
    Saving money for well over half a century
    • ambitiouspanda
    • By ambitiouspanda 22nd Oct 16, 11:33 AM
    • 32 Posts
    • 36 Thanks
    ambitiouspanda
    • #4
    • 22nd Oct 16, 11:33 AM
    • #4
    • 22nd Oct 16, 11:33 AM
    Generally speaking, you should not have a cash ISA, the rates are terrible and you can earn £1000 in interest before you pay tax on it (£500 for higher rate payers) anyway. If you do have a cash ISA you can usually continue with the same one, no need to open another.
    A Help To Buy ISA is different, the government gives you a big bonus when you buy, which swamps most other considerations.

    Banks, have lots of them, starting with xylophone's suggestions, and continuing with the others listed here. Note that some rates are dropping in January, so that table may be a little misleading.

    Lloyds Bank is currently paying me 4% on over £5000 - you've missed the boat on that but 2% (3% on their regular saver) is way better than that ½% you mention - and 5% is even better (Nationwide, First Direct, HSBC, M&S Regular Savers).
    Originally posted by Eco Miser
    I am trying to figure out what bank to go with.. Barclays seems to have a better rate atm.. nationwide want £3K deposit for 2%.. etc.. do you recommend any?

    I don't know if the ISA is beneficial as I would like to save more than £200 p/m. Or should I open up a cash ISA next year on top of the help to buy ISA and save the other half of my money (I usually save £1-2k per month). Opening an ISA could mean I would have £800-1800 lingering around... any advice would be great.
    **2017 G O A L S**
    1) Save £18,000 on the "Save 12k for 2017" challenge!
    2) Save £1000 from day-to-day spending.
    • TheShape
    • By TheShape 22nd Oct 16, 2:41 PM
    • 753 Posts
    • 500 Thanks
    TheShape
    • #5
    • 22nd Oct 16, 2:41 PM
    • #5
    • 22nd Oct 16, 2:41 PM
    I am trying to figure out what bank to go with.. Barclays seems to have a better rate atm.. nationwide want £3K deposit for 2%.. etc.. do you recommend any?

    I don't know if the ISA is beneficial as I would like to save more than £200 p/m. Or should I open up a cash ISA next year on top of the help to buy ISA and save the other half of my money (I usually save £1-2k per month). Opening an ISA could mean I would have £800-1800 lingering around... any advice would be great.
    Originally posted by ambitiouspanda
    I have no idea what Nationwide account you're looking at.

    Go back to post #2 by xylophone. Open a FlexDirect account for 5% interest on £2.5k (you must fund this account with £1000 p/m). Open a Flexclusive Regular saver into which £500 p/m can go.

    Do you have a Help to Buy ISA?
    • darkidoe
    • By darkidoe 22nd Oct 16, 2:44 PM
    • 761 Posts
    • 846 Thanks
    darkidoe
    • #6
    • 22nd Oct 16, 2:44 PM
    • #6
    • 22nd Oct 16, 2:44 PM
    You need to read this: Regular Savings account listing all the current top rates for regular savers
    and then
    High Interest Accounts
    and then
    open a HTB ISA as recommended above.

    What rates does Barclays have?

    Save 12K in 2017 # 9 £1360.10./15 000 (9%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Oct 16, 4:46 PM
    • 3,072 Posts
    • 5,115 Thanks
    enthusiasticsaver
    • #7
    • 22nd Oct 16, 4:46 PM
    • #7
    • 22nd Oct 16, 4:46 PM
    Nationwide definitely, both the flex direct and the flexclusive regular saver. You can put a maximum of £2500 in the flex direct and £500 per month in the regular saver. Both of those will give you 5%. First Direct, Hsbc and M and S will also give you 5% although you will have to open current accounts too. Alternatively you could use Tesco current accounts (maximum of 2 I think) which will pay you 3% on up to £3000 each.

    Don't bother with cash isas. The rates on them are terrible. Exception is help to buy isa which gives you free money.
    Debt and mortgage free and saving for early retirement
    • Eco Miser
    • By Eco Miser 22nd Oct 16, 11:27 PM
    • 2,676 Posts
    • 2,493 Thanks
    Eco Miser
    • #8
    • 22nd Oct 16, 11:27 PM
    • #8
    • 22nd Oct 16, 11:27 PM
    nationwide want £3K deposit for 2%.. etc.. do you recommend any?
    Originally posted by ambitiouspanda
    What account is that? Their flexDirect pays 5% on £2.5k and their Flexclusive Saver 5% on £500 per month -- as you've already been told.
    I don't know if the ISA is beneficial as I would like to save more than £200 p/m.
    Originally posted by ambitiouspanda
    So you save more than £200 pm, of which £200 is HTB ISA, and earns a 25% bonus when you buy your house.
    Or should I open up a cash ISA next year on top of the help to buy ISA and save the other half of my money (I usually save £1-2k per month). Opening an ISA could mean I would have £800-1800 lingering around... any advice would be great.
    Originally posted by ambitiouspanda
    If you have a regular excess income you want to save, use a Regular Saver account (or two, or three, or six). Accounts on that link total £1300 pm @5%, and another £1000pm @3% or more.

    Only use ISAs if they pay more than you could get elsewhere (all these current and Regular Saver accounts paying over 3%)
    Eco Miser
    Saving money for well over half a century
    • ambitiouspanda
    • By ambitiouspanda 25th Oct 16, 2:24 PM
    • 32 Posts
    • 36 Thanks
    ambitiouspanda
    • #9
    • 25th Oct 16, 2:24 PM
    • #9
    • 25th Oct 16, 2:24 PM
    Nationwide definitely, both the flex direct and the flexclusive regular saver. You can put a maximum of £2500 in the flex direct and £500 per month in the regular saver. Both of those will give you 5%. First Direct, Hsbc and M and S will also give you 5% although you will have to open current accounts too. Alternatively you could use Tesco current accounts (maximum of 2 I think) which will pay you 3% on up to £3000 each.

    Don't bother with cash isas. The rates on them are terrible. Exception is help to buy isa which gives you free money.
    Originally posted by enthusiasticsaver

    I am so excited ! I just opened my Nationwide account online and was accepted! Let the savings begin!!
    **2017 G O A L S**
    1) Save £18,000 on the "Save 12k for 2017" challenge!
    2) Save £1000 from day-to-day spending.
    • ambitiouspanda
    • By ambitiouspanda 25th Oct 16, 2:25 PM
    • 32 Posts
    • 36 Thanks
    ambitiouspanda
    What account is that? Their flexDirect pays 5% on £2.5k and their Flexclusive Saver 5% on £500 per month -- as you've already been told.
    So you save more than £200 pm, of which £200 is HTB ISA, and earns a 25% bonus when you buy your house.If you have a regular excess income you want to save, use a Regular Saver account (or two, or three, or six). Accounts on that link total £1300 pm @5%, and another £1000pm @3% or more.

    Only use ISAs if they pay more than you could get elsewhere (all these current and Regular Saver accounts paying over 3%)
    Originally posted by Eco Miser
    Thank you so much!!! This is so helpful!
    **2017 G O A L S**
    1) Save £18,000 on the "Save 12k for 2017" challenge!
    2) Save £1000 from day-to-day spending.
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