First time savings account - any advice?

Mikey100

Hi, this is my first post, so apologies if it’s in the wrong place or if I’ve missed the answer already.

I’ve done a search and found some useful info, but just wanted to check before I make any final decisions.

Im 18 so this is my first decent sum of money and my first time saving it with the aim of getting some interest rather than just "sticking it in the bank"

The amount is approx 10,000 quid. Im in the basic 20% tax band, I don’t need access to the money for approx 8 months, so it can go into a 6 month bond but the chances are I will need it before 12 months.

I know this is increasingly difficult to find, but ideally I would like to put the money in and then not worry about it for 6 months and know the interest is being accumulated.

SO...

I need a fixed interest rate for 6 months, I don’t need to withdraw the money for at least 6 months, the amount is 10,000 pounds, I am under 60 and I would like to get as much interest as possible

I have had a look on moneysupermarket and found that Yorkshire building society offer a fixed 5.58 AER over 6 months, its all internet based which means I can keep a tab on it relatively easily. Does this look like a good option? - How are YBS looking, am I covered incase they go

Details of the "e-bond" are here: http://www.ybs.co.uk/email/ebond/index.htm?cmpid=102

Any advice would be much appreciated, as I say - this is my first real go at saving any substantial amount of money so I could use all the useful advice I can get.

Thanks V much
Mikey

whiterose11

as you are a taxpayer the first place i would suggest is an isa so that any interest u earn will not be taxed (so keeps more in ur pocket). u can put in 3600 this tax year (untill april)

Kent Reliance BS. looks good as ur under 24 but is only postal. the link below will take u to the top isa accounts with there pros and cons. Can get fixed rate isa but most are variable

http://www.moneysavingexpert.com/savings/best-cash-isa#best.

another place is alliance and leicester which does a special under 21 current account that makes 9.98% aer fixed for a year on anything up to a thousand. can take money in and out whenever u want (rule is must transfer money into this account every month. so on 1st transfer 10 pounds in each month and then transfer it striaght out again, i have this account ) so maybe stick a grand in that.

but the bond does look good too for the 5600 left

hope this helps