What next with savings?

ManPants

Hello,

Any wise old owls out there who can help me with what to do next?

Debts - gone!
This year I paid off all my debts including my student loan I took out in the mid 1990's, plus paid off my credit card and am debt free.

Savings - Isa - Full!
After paying all my debts this year, I managed to get £925 into an ISA before the end of last years tax year plus have already added my £3600 allowance for this years taking me to £4525. Obviously I can save another £3600 to have ready to put into my Isa for the start of the next financial year in April 2009.

Mortgage - overpaying!
We're 3 years into a 25 year mortgage with £100, 000 left. We are overpaying £500 extra a month onto mortgage which means we will be mortgage free in 8 years and save £42, 000 in interest rates.

House - savings.
My partner and I pay £250 each a month into a house savings account for refurbishments, decorating etc etc.

Pension - paying!
I have an NHS pension which I pay into each month and by what I've heard the NHS pension is one of the best ones around.


Aside from upping my mortgage overpayment to £600 which is the maximum I can go to as part of my 10% allowance a year I'm not sure what I should do next. I have - probably - about £400 a month I can do something with after living pretty well and still having 2 exotic holidays a year plus 3 0r 4 small trips. Should I just put this money into my online bonus HSBC with 5.25% interest or does anyone else have a better idea?

Thank you Wise Owls!!

Stupotstu

[Deleted User]

stupotstu wrote: »

Should I just put this money into my online bonus HSBC with 5.25% interest or does anyone else have a better idea?

God no! :eek:

1 . I'd always suggest an ISA as the first place to save so good job there.

2 . Then I'd suggest a regular savings accounts, take a look at:

http://www.moneysavingexpert.com/sav...vings-accounts
and http://forums.moneysavingexpert.com/....html?t=608697

Regular savings accounts are generally a good place for new money e.g. monthly pay cheques, however if for example you have £3k in a 6% high-interest bank account drip-feeding into a 10% regular savings account then you're essentially getting 8% interest on average for your £3k which beats most fixed rate products - albeit with a bit more work.

3. If you want something with a little less work then fixed rate savings accounts are a good option:

http://www.moneysavingexpert.com/sav...interest#fixed
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

4. One other thing you might like to consider is getting a decent instant access savings account:

http://www.moneysavingexpert.com/sav...st#topaccounts
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

5. Finally if you're a higher rate tax payer then NS&I's 3 and 5 year Index Linked Savings (http://www.nsandi.com/products/ilsc/index.jsp) look good, paying 1% above the RPI inflation rate. Currently this is 5.0% so that’s a rate of 6.0% overall.

The attractiveness of these is that the savings are tax-free meaning it's better for higher-rate taxpayers. Basic rate taxpayers would need to earn 7.5% in a normal savings account to match this, while higher rate taxpayers would need a 10%.

One thing to note is if inflation drops then so does the rate for these savings. It'll always be higher than inflation and tax free though.

Lokolo

davidmt... already have an ISA full.

What about your wife/husband OP? Have they filled her ISA allowance?

Then do the regualr saver.

Malski

Can you put another £3600 into a cash ISA??

Think your allowed to put upto £7200 into ISA's overall but not more than £3600 into 1, if you get what I mean?

[Deleted User]

Lokolo wrote: »

davidmt... already have an ISA full..

I know... Re-read point 1 above....

Lokolo

Malski wrote: »

Can you put another £3600 into a cash ISA??

Think your allowed to put upto £7200 into ISA's overall but not more than £3600 into 1, if you get what I mean?

Thats for Stocks and Shares. Could do that, but not sure if the OP wants risk or not.

I know... Re-read point 1 above....

Alright Mr. Editor :rotfl::p

[Deleted User]

Lokolo wrote: »

Alright Mr. Editor :rotfl::p

I knew you'd say that

I honestly didn't edit that section of my post - it was point 5 and updating the RPI rates but you'll have to trust me on that one

ManPants

Malski wrote: »

Can you put another £3600 into a cash ISA??

Think your allowed to put upto £7200 into ISA's overall but not more than £3600 into 1, if you get what I mean?

Its not both cash isa's - one of them is an investment btype stock thing which is not without its risks!

Thanks for posting!:T

ManPants

Thanks Davidmt83

Have made an appointment to open a Halifax Regular savers account for a year which pays 7% and allows up to £500 a month deposit. Can't miss any payments or the rate drops RIGHT down to 1% for the entire period but I shall be keeping me eye firmly on it! I think it is best that I extend myself and pay the maximum £500 per month which will still leave me 200 a month to play with and these days I am a man of simple tastes................with an eye on a house beside the sea in the next few years! By the time I'm 40 I want to be drinking a glass of wine with the sound of the ocean from my garden!!

Thanks everyone for your input!

Stuart

ManPants

Grrrrrrrrrrrrrrrrrr!!

Just had my appointment at the Halifax and they've changed their conditions on the regular savings accounts whereby they have reduced their monthly deposits from £500 to a MAXIMUM of £250. Best they can offer is the online one paying 6% ........................I didn't think it would be so problematic just to save money!!

Stuart