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  • FIRST POST
    • Bookowl
    • By Bookowl 8th Jan 18, 8:05 PM
    • 14Posts
    • 1Thanks
    Bookowl
    Where to put my small pot of money?.
    • #1
    • 8th Jan 18, 8:05 PM
    Where to put my small pot of money?. 8th Jan 18 at 8:05 PM
    Hi,
    I have a small pot of money that Id like to put away somewhere, rather than having it in my current account currently. The long term goal would be a mortgage deposit, but dont have a help to buy isa yet. Id like to put my small pot in a savings account and then have a recurrent DD to the help to buy isa. Id hope to put away 30/40 weekly,as I get paid weekly. What are the best savings account on the market for what I want to do?
Page 1
    • xylophone
    • By xylophone 8th Jan 18, 8:23 PM
    • 24,006 Posts
    • 14,012 Thanks
    xylophone
    • #2
    • 8th Jan 18, 8:23 PM
    • #2
    • 8th Jan 18, 8:23 PM
    How much money is involved?
    • Owen1991
    • By Owen1991 8th Jan 18, 8:34 PM
    • 34 Posts
    • 46 Thanks
    Owen1991
    • #3
    • 8th Jan 18, 8:34 PM
    • #3
    • 8th Jan 18, 8:34 PM
    If you're not looking to buy within the next year and you're a first time buyer I'd setup a S&S LISA/Cash LISA to save 4,000 a year.
    Save 12k in 2018 - 800/12000 ~ # | Sealed Pot Challenge 2018 ~ #44
    7000 in LISA | 8000 in Savings - End of 2017
    Debt Free | Saving for a House Deposit
    • Bookowl
    • By Bookowl 8th Jan 18, 8:34 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    • #4
    • 8th Jan 18, 8:34 PM
    • #4
    • 8th Jan 18, 8:34 PM
    8500 currenlty.
    • Bookowl
    • By Bookowl 8th Jan 18, 8:36 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    • #5
    • 8th Jan 18, 8:36 PM
    • #5
    • 8th Jan 18, 8:36 PM
    Id be looking to buy within the next 5_7 years, whats the LISA and is there a minimum pay in every month?
    • xylophone
    • By xylophone 8th Jan 18, 8:51 PM
    • 24,006 Posts
    • 14,012 Thanks
    xylophone
    • #6
    • 8th Jan 18, 8:51 PM
    • #6
    • 8th Jan 18, 8:51 PM
    You might consider a LISA. (4000).

    https://www.skipton.co.uk/savings/isas/lifetime-isa

    You might open a Nationwide Flexdirect current account and a TSB Plus current account.

    You would deposit 2500 in the former and 1500 in the latter and set up a Standing Order for 1000 from NW to TSB and from TSB to NW on the same day each month for a year - sometime between 4th and 20th month probably best.

    You could then open a Nationwide Flexclusive monthly saver and deposit your 50 a month together with interest arising on the Flexdirect and the TSB plus account.

    When the 5 % interest on the Flexdirect ends after a year, you could transfer the 2500 in the Flexdirect plus the 1500 into the LISA and the money saved in the Flexclusive saver into TSB.

    You would then need to decide whether you would keep the Flexdirect so as to continue to qualify for the Flexclusive saver.

    To continue to earn interest in TSB you would need to cycle in /out 500 a month.

    You could then continue the saving into LISA in subsequent years with lump sums saved in the other accounts.
    • Owen1991
    • By Owen1991 8th Jan 18, 10:48 PM
    • 34 Posts
    • 46 Thanks
    Owen1991
    • #7
    • 8th Jan 18, 10:48 PM
    • #7
    • 8th Jan 18, 10:48 PM
    8500 currenlty.
    Originally posted by Bookowl
    If you open one now or before 5th of April you could put 4000 in, then another 4000 in on the 6th of April and by the end of April/early May you'll have the bonus added making that 10000.

    Theres no minimum monthly contributions, the limit is 4000 a year, not sure if you can set up a direct debit, but it's easy to make deposits when ever you want on the lipton website, if you chose a cash LISA
    Save 12k in 2018 - 800/12000 ~ # | Sealed Pot Challenge 2018 ~ #44
    7000 in LISA | 8000 in Savings - End of 2017
    Debt Free | Saving for a House Deposit
    • Eco Miser
    • By Eco Miser 9th Jan 18, 3:21 AM
    • 3,312 Posts
    • 3,080 Thanks
    Eco Miser
    • #8
    • 9th Jan 18, 3:21 AM
    • #8
    • 9th Jan 18, 3:21 AM
    You could then open a Nationwide Flexclusive monthly saver and deposit your 50 a month together with interest arising on the Flexdirect and the TSB plus account.
    Originally posted by xylophone
    The OP said 30/40 weekly. That can be done, up to 250 per month can be saved, and I'd recommend making the monthly deposits up to 250 by reducing the TSB balance, thus saving more at 5%.
    If the balance there drops to 1000, change the SOs to 250 weekly - same total but lower balance required for safe operation.
    Eco Miser
    Saving money for well over half a century
    • Bookowl
    • By Bookowl 12th Jan 18, 8:58 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    • #9
    • 12th Jan 18, 8:58 PM
    • #9
    • 12th Jan 18, 8:58 PM
    With the LISA do I get a bonus? And can I use the LISA for making withdrawals encase. I need to use the savings for something else?
    • Bookowl
    • By Bookowl 12th Jan 18, 9:06 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    Just to clarify I would need to open a nationwide flex direct and a tsb, deposit from the NW flex direct to tsb?
    Are there.other options I could look at?
    • Eco Miser
    • By Eco Miser 13th Jan 18, 4:31 AM
    • 3,312 Posts
    • 3,080 Thanks
    Eco Miser
    Just to clarify I would need to open a nationwide flex direct and a tsb, deposit from the NW flex direct to tsb?
    Are there.other options I could look at?
    Originally posted by Bookowl
    If following xylophone's suggestion, yes.

    See the quick links at the top of each page for more ideas.
    Eco Miser
    Saving money for well over half a century
    • ValiantSon
    • By ValiantSon 13th Jan 18, 7:03 AM
    • 173 Posts
    • 172 Thanks
    ValiantSon
    With the LISA do I get a bonus? And can I use the LISA for making withdrawals encase. I need to use the savings for something else?
    Originally posted by Bookowl
    Yes, you get a 25% bonus each year upto the age of 50 (on deposits that year).

    No, you can't dip into it. The money is locked away until you buy your first home or reach the age of 60.

    You must be under 40 to open a LISA.
    • Bookowl
    • By Bookowl 14th Jan 18, 8:44 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    Could I deposit my current small amount of money into a nationwide regular saver and then make direct debits to a help to buy isa? Or would I better to deposit it to the tsb account? What's the tsb account offer over a help to buy isa?
    • Eco Miser
    • By Eco Miser 15th Jan 18, 4:36 AM
    • 3,312 Posts
    • 3,080 Thanks
    Eco Miser
    Could I deposit my current small amount of money into a nationwide regular saver
    Originally posted by Bookowl
    Only at a rate of 250 a month
    and then make direct debits to a help to buy isa?
    Originally posted by Bookowl
    Not directly. You would have to move the required sum to a current account first. (Does the HTB ISA support direct debits?)
    Or would I better to deposit it to the tsb account?
    Originally posted by Bookowl
    Yes, and the FlexDirect. You've 8500 to deploy, and it's only worth keeping 1500 in TSB and 2500 in Nationwide current account.
    What's the tsb account offer over a help to buy isa?
    Originally posted by Bookowl
    Instant access, no limit on contributions, better interest rate (excluding the one off bonus paid when you buy your first residence).

    You seem confused about the purpose of various accounts.
    An HTB ISA is to buy a house, collecting the government bonus on the way. It's a poor account for any other purpose.

    A Regular Saver account is to accumulate savings over a year to accumulate a lump sum and get high interest on the running balance. It can also help in getting high interest on existing sums by cycling the money into the saver.
    Even when withdrawals are allowed, it's usually best to avoid them.

    Current accounts are supposed to be for receiving and making payments, and holding sufficient funds to cover the payments; but high interest current accounts can also be used for saving, up to the amount on which interest is paid.
    Eco Miser
    Saving money for well over half a century
    • Bookowl
    • By Bookowl 18th Jan 18, 3:12 PM
    • 14 Posts
    • 1 Thanks
    Bookowl
    I already hold an account with nationwide and so could upgrade my account to the flexdirect account. I had a look at the tsb website, theres classic or plus accounts- which one would you recommend? For the plus one I'd have to set up 2 direct debits and pay in 500 a month, which I couldn't afford.
    • xylophone
    • By xylophone 18th Jan 18, 3:48 PM
    • 24,006 Posts
    • 14,012 Thanks
    xylophone
    Read carefully

    https://www.tsb.co.uk/plus3/?WT.mc_id=43700012192331650&WT.srch=1&keyword=tsb% 20plus%20account&matchtype=e&adid=198209561508&gcl id=EAIaIQobChMI8Jnzp-3h2AIVaLXtCh2gMQ30EAAYASAAEgJ5c_D_BwE&gclsrc=aw.ds

    Classic Plus account - 3% AER/2.96 % gross variable interest (paid monthly) on balances up to 1,500. Must pay in a minimum of 500 a month, register for Internet Banking, paperless statements and paperless correspondence. It's important that you log in regularly, at least once every 12 months.

    You do not need DDs to qualify for interest.

    The 500 a month can be in and out in seconds if you use faster payment.
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