Where should i put my money?

Midmac

I am currently at Sixth form centre. I am making a great deal of money lately by working at a hotel ( loads of hours near christmas time) and selling on ebay.

Im with HSBC at the moment. A normal current account.

I was considering putting some of my profits and wages etc into a savings account.

I was wondering if anybody could recommend a one ( preferably online )

There is one @ HSBC here :
http://www.hsbc.co.uk/1/2/personal/savings-investments/savings/online-saver
but £500 is a bit more than i have at the moment. Is it worth waiting a few weeks and opening an account there?

Any help is appreciated

PS. Be nice please, im new to this

tomstickland

That's not bad. 4.75% AER. There's also the Icicici HiSave account that pays 5.1% AER now. What's your tax situation? I was going to suggest a mini cash ISA, but if you don't pay tax anyway, there's no point.

Midmac

No i dont pay tax.

Is 4.75% added on each month ?

I dont really understand stuff like this.

tomstickland

4.75% AER means that if you leave a fixed amount in there for a year then you will end up with 4.75% more that you started with. They also have the gross interest rate which will normally be lower than the AER. The gross rate is their starting rate [edit] ie: their starting point for calculating interest payments.[/edit]. For a monthly payer divide the gross rate by 12 and that'll give you your average monthly interest payment rate.

Midmac

Thanks mate. I will see how my finances go in the next few weeks. If i have enough i will open a savings account with HSBC.

I presume that i will be able to freely transfer money back and forth between my current and savings account.

also does there always have to be £500 in the account?

tomstickland

Read the terms and conditions.

I've got a few online savings accounts and can move money between accounts on line very easily.

Also check the savings section on the main MSE pages.

Midmac

Thanks mate