Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Skilzzz
    • By Skilzzz 11th Jan 18, 12:27 AM
    • 4Posts
    • 0Thanks
    Skilzzz
    Advice please...15k savings...
    • #1
    • 11th Jan 18, 12:27 AM
    Advice please...15k savings... 11th Jan 18 at 12:27 AM
    Hi guys...just joined the forum and am looking for some advice.

    I have £15k in savings that i am keeping for the kids for when they are older. Its just in my current account atm...what would be the best thing to do with it in terms of savings account, etc. Obviously i can keep it locked away for a good few years but want investment with no risk of course.

    Is it best to just open a 5 year fixed rate bond with someone like Paragon...or spread money out in different accounts that pay higher. I do realise that most of these high interest rate accounts require monthly payments and direct debits and such, which is what has put me off them.

    Any help will be much appreciated.

    Thanks
Page 1
    • Dazed and confused
    • By Dazed and confused 11th Jan 18, 1:07 AM
    • 2,095 Posts
    • 945 Thanks
    Dazed and confused
    • #2
    • 11th Jan 18, 1:07 AM
    • #2
    • 11th Jan 18, 1:07 AM
    Your post is a little confusing.

    Do you want to invest the money or have it 100% secure and just get the best savings interest rate possible?
    • Alexland
    • By Alexland 11th Jan 18, 6:58 AM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    • #3
    • 11th Jan 18, 6:58 AM
    • #3
    • 11th Jan 18, 6:58 AM
    I get the feeling the OP wants to save rather than invest and already understands the options. I am confused if this money is definitely for the kids or potentially also a rainy day fund being in a main bank account.

    Yes there are 5% regular savers if you are willing to operate multiple bank accounts and keep cycling the money around. It's best to offset the opening dates across the year to try and keep a rolling balance across the accounts.

    Still it's hassle and some people don't value the higher interest enough to bother. Also you've got to accept a lower interest rate on the money when it is not in the 5% accounts.
    • Skilzzz
    • By Skilzzz 11th Jan 18, 8:14 AM
    • 4 Posts
    • 0 Thanks
    Skilzzz
    • #4
    • 11th Jan 18, 8:14 AM
    • #4
    • 11th Jan 18, 8:14 AM
    Sorry for the confusion...just want the best interest rate possible tbh. Would not need the money for anything else...its just for the kids future.

    These rates of 2.5% for a 5 year fixed aren't going up anytime soon i guess?
    • somethingcorporate
    • By somethingcorporate 11th Jan 18, 8:42 AM
    • 8,861 Posts
    • 8,566 Thanks
    somethingcorporate
    • #5
    • 11th Jan 18, 8:42 AM
    • #5
    • 11th Jan 18, 8:42 AM
    Sorry for the confusion...just want the best interest rate possible tbh. Would not need the money for anything else...its just for the kids future.

    These rates of 2.5% for a 5 year fixed aren't going up anytime soon i guess?
    Originally posted by Skilzzz
    Probably not although if you are willing to put some time in to it you can beat that with a number of current accounts and regular savings accounts.
    Thinking critically since 1996....
    • RG2015
    • By RG2015 11th Jan 18, 9:05 AM
    • 716 Posts
    • 368 Thanks
    RG2015
    • #6
    • 11th Jan 18, 9:05 AM
    • #6
    • 11th Jan 18, 9:05 AM
    Obviously i can keep it locked away for a good few years but want investment with no risk of course.
    Originally posted by Skilzzz
    Sorry for the confusion...just want the best interest rate possible tbh.

    These rates of 2.5% for a 5 year fixed aren't going up anytime soon i guess?
    Originally posted by Skilzzz
    Risk is not always easy to quantify. If you save £15,000 in a 5 year 2.5% account it will be worth £16,971 in 5 years. However inflation will erode the value of this in five years time. If inflation remains at 3% then the true value of the £16,971 will be £14,639.

    It is unlikely that 5 year rates will increase much in the near future, but in 2 or 3 years they probably will go up. Inflation is another matter but the government is committed to keeping this down so it really should not increase much over the next five years. But nobody can possibly know for sure.

    25 years ago my baby daughter was given £1,000 by my mother and I invested this in a tax free fund which was automatically converted into a stocks and shares ISA when these replaced the original scheme. It is now worth £6,600 which I believe is slightly ahead of the FTSE 100 growth over this period. However the FTSE is riding high at the moment and many fear a fall in the near future. Hence investing in a S&S ISA now may be more risky in the short term.

    Sorry if this has become a bit complicated but these are the basic issues as I see them and sadly there is no simple answer. For what it is worth I currently favour the NS&I 3 year bond at 2.20% and in 3 years we should know a bit more about how Brexit will be affecting inflation and savings rates.
    Last edited by RG2015; 11-01-2018 at 9:07 AM.
    • xylophone
    • By xylophone 11th Jan 18, 11:05 AM
    • 24,074 Posts
    • 14,079 Thanks
    xylophone
    • #7
    • 11th Jan 18, 11:05 AM
    • #7
    • 11th Jan 18, 11:05 AM
    Do your children have CTF/JISA?

    The Coventry JISA currently pays 3.5%.

    You might wish to make each child a gift of some of the cash?

    Otherwise, (assuming you have not already done this), you and your wife might each open a Nationwide Flexdirect current account, deposit £2500 in each, and a joint Flexdirect account and cycle in/out £1000 a month each from a non-NW account.

    You would each have access to the Flexclusive monthly saver.

    You might also each open a TSB Plus current account and a joint account - you would deposit £1500 in each and perhaps use these for the cycle in/out to TSB.

    Otherwise

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

    or Ns&I.
    • Alexland
    • By Alexland 11th Jan 18, 12:19 PM
    • 1,160 Posts
    • 784 Thanks
    Alexland
    • #8
    • 11th Jan 18, 12:19 PM
    • #8
    • 11th Jan 18, 12:19 PM
    However the FTSE is riding high at the moment and many fear a fall in the near future. Hence investing in a S&S ISA now may be more risky in the short term.
    Originally posted by RG2015
    I agree and that's why I didn't suggest S&S investments to the OP as, although it could still work out better in the long term if the kids are young enough, I got the impression they are risk averse and markets are looking a bit high at the moment so there's the possibility of an alarming drop in the next 6-18 months before an eventual recovery.

    Alex.
    • Skilzzz
    • By Skilzzz 11th Jan 18, 12:48 PM
    • 4 Posts
    • 0 Thanks
    Skilzzz
    • #9
    • 11th Jan 18, 12:48 PM
    • #9
    • 11th Jan 18, 12:48 PM
    Do your children have CTF/JISA?

    The Coventry JISA currently pays 3.5%.

    You might wish to make each child a gift of some of the cash?

    Otherwise, (assuming you have not already done this), you and your wife might each open a Nationwide Flexdirect current account, deposit £2500 in each, and a joint Flexdirect account and cycle in/out £1000 a month each from a non-NW account.

    You would each have access to the Flexclusive monthly saver.

    You might also each open a TSB Plus current account and a joint account - you would deposit £1500 in each and perhaps use these for the cycle in/out to TSB.

    Otherwise



    or Ns&I.
    Originally posted by xylophone
    Thanks for the replies guys.

    No they dont have trust funds or junior isa's.

    With the Coventry JISA, i can only put in just over £4k in one of those right? And that 3.5% is a variable rate? How long is that going to stay at 3.5% if it is variable?
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 12:57 PM
    • 5,242 Posts
    • 9,959 Thanks
    enthusiasticsaver
    There are no guarantees with interest rates unless you go for fixed rate deposits. Junior ISA will pay better than normal savings accounts but bear in mind they will be in the childs control from the age of 18. If you plan on adding to the £15k you may be wary of having that amount of money in the control of a young adult.

    If you have a low level of risk than stocks and shares may not be for you although undoubtedly in the long run the returns would be better but not guaranteed. The stock market is high at the moment though and noises about market corrections but that is sheer guesswork.

    I think personally I would put some in JISA and some in fixed rate term deposit at the best rate you can get.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • MallyGirl
    • By MallyGirl 11th Jan 18, 1:09 PM
    • 2,317 Posts
    • 7,330 Thanks
    MallyGirl
    Thanks for the replies guys.

    No they dont have trust funds or junior isa's.

    With the Coventry JISA, i can only put in just over £4k in one of those right? And that 3.5% is a variable rate? How long is that going to stay at 3.5% if it is variable?
    Originally posted by Skilzzz
    Do you have £15k each or in total? A JISA needs to be in the name of the child so if it is £15k total it would need to be split anyway. And then you can put in £4k before April 6th and another £4k after.

    Child accounts have better rates than adult ones. The rates do change - my DD's Halifax ISA was 6% for a while but then dropped to 3% but that is still better than pretty much everywhere else.
    • Skilzzz
    • By Skilzzz 11th Jan 18, 2:15 PM
    • 4 Posts
    • 0 Thanks
    Skilzzz
    Do you have £15k each or in total? A JISA needs to be in the name of the child so if it is £15k total it would need to be split anyway. And then you can put in £4k before April 6th and another £4k after.

    Child accounts have better rates than adult ones. The rates do change - my DD's Halifax ISA was 6% for a while but then dropped to 3% but that is still better than pretty much everywhere else.
    Originally posted by MallyGirl
    Its £15k in total. If i open a Junior ISA for both kids, i can put in £4k before april this year and another £3.5k after April then?
    • MallyGirl
    • By MallyGirl 11th Jan 18, 2:23 PM
    • 2,317 Posts
    • 7,330 Thanks
    MallyGirl
    yes you can - it is £4128 before end of tax year to be precise
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

470Posts Today

5,300Users online

Martin's Twitter