£500 to save!

Truly.Yours

Hi all, I am a student, and I have £500 to save!!! I am SOOO happy! :-) lol

I would like to save this money in the most effective and safe way just in case I ever need it. I would probably need access to it just in case of an emergency. Could you please help me?

I currently have a student account with Lloyds TSB and they have also refused to give me an overdraft. (not even £100!) I also have a young persons account with Barclays.

Could you please advice me as to what is the best thing for me to do??

I can probably also save £10 a week, but not too sure about this (about 90% sure... might miss the odd week here and there...)

Thanks in advance look forward to hearing your expert advice

opinions4u

If you can get it sorted by the end of Saturday, I'd go for Halifax Web Saver Reward.

Pays 5% fixed for a year. Allows 4 withdrawals and also allows additional deposits.

Think you need to set this up in branch though, as they are pulling it on 1st December.

Truly.Yours

opinions4u wrote: »

If you can get it sorted by the end of Saturday, I'd go for Halifax Web Saver Reward.

Pays 5% fixed for a year. Allows 4 withdrawals and also allows additional deposits.

Think you need to set this up in branch though, as they are pulling it on 1st December.

Thank you for such a quick reply! I googled it and came up with this:

http://www.halifax.co.uk/savings/apply_websaverreward.asp

Is it the same thing? Can I sign up online?

Lokolo

Yes that is correct.

Truly.Yours

Lokolo wrote: »

Yes that is correct.

Thanks, do you know how I can work out how much i would have after a year if I start with £500 and save £10 a week?

natman

Truly.Yours wrote: »

Hi all, I am a student, and I have £500 to save!!! I am SOOO happy! :-) lol

I would like to save this money in the most effective and safe way just in case I ever need it. I would probably need access to it just in case of an emergency. Could you please help me?

I currently have a student account with Lloyds TSB and they have also refused to give me an overdraft. (not even £100!) I also have a young persons account with Barclays.

Could you please advice me as to what is the best thing for me to do??

I can probably also save £10 a week, but not too sure about this (about 90% sure... might miss the odd week here and there...)

Thanks in advance look forward to hearing your expert advice [/


Hi Truly.
Firstly well done, in thinking about saving your money and looking to add to it. Many people may look at blowing it, but like an old friend said, if you look after the pennies the pounds will look after themselves.............
Ok saving -

At the minute the saving sector is all over the place. There has been interest rates cut and many decent interest paying accounts arnt there anymore. Any how lets see how we can help.................

Many people suggest an ISA to begin with so tehy dont pay tax, but you may be exempt from tax anyway so you may have a clear playing field.

My thoughts would be - 1 -safety 2 - ease of access and 3 interest rate. i.e your money is safe, you can get hold of it if needed and you get a little back from the bank.

I have a Yorkshire Building society account -The Yorkshire BS Internet Saver, with optional cash card, pays 5.5% AER and you only need £1 to open it.
This at present gives you adecent rate of interest and a ATM Card.

Or perhaps look at this - Birmingham Midshires esaver 2

Also - UK Government Owned: The best paying Northern Rock account is the eSaver which pays 5.15% AER on balances above £1.

Well done again for trying to get some saings behind you!!!

natman

Truly.Yours wrote: »

Thanks, do you know how I can work out how much i would have after a year if I start with £500 and save £10 a week?

Truly link on this link, at the bottom there is a calculator to work it out, have a go

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#instant

Truly.Yours

natman wrote: »

Truly.Yours wrote: »

Hi all, I am a student, and I have £500 to save!!! I am SOOO happy! :-) lol

I would like to save this money in the most effective and safe way just in case I ever need it. I would probably need access to it just in case of an emergency. Could you please help me?

I currently have a student account with Lloyds TSB and they have also refused to give me an overdraft. (not even £100!) I also have a young persons account with Barclays.

Could you please advice me as to what is the best thing for me to do??

I can probably also save £10 a week, but not too sure about this (about 90% sure... might miss the odd week here and there...)

Thanks in advance look forward to hearing your expert advice [/


Hi Truly.
Firstly well done, in thinking about saving your money and looking to add to it. Many people may look at blowing it, but like an old friend said, if you look after the pennies the pounds will look after themselves.............
Ok saving -

At the minute the saving sector is all over the place. There has been interest rates cut and many decent interest paying accounts arnt there anymore. Any how lets see how we can help.................

Many people suggest an ISA to begin with so tehy dont pay tax, but you may be exempt from tax anyway so you may have a clear playing field.

My thoughts would be - 1 -safety 2 - ease of access and 3 interest rate. i.e your money is safe, you can get hold of it if needed and you get a little back from the bank.

I have a Yorkshire Building society account -The Yorkshire BS Internet Saver, with optional cash card, pays 5.5% AER and you only need £1 to open it.
This at present gives you adecent rate of interest and a ATM Card.

Or perhaps look at this - Birmingham Midshires esaver 2

Also - UK Government Owned: The best paying Northern Rock account is the eSaver which pays 5.15% AER on balances above £1.

Well done again for trying to get some saings behind you!!!

Thank you for getting back to me :-) I was wondering how do I know if I pay tax? I have watched Martin explain the ISA using the cake example and cling film and the tax man. So the ISA means no tax? but as I am a student do I have to pay tax?

Baldur

Truly.Yours wrote: »

Thanks, do you know how I can work out how much i would have after a year if I start with £500 and save £10 a week?

Roughly £1017.90 before tax, if you add £40 per month on the 5% fixed rate account.

Truly.Yours

natman wrote: »

Truly link on this link, at the bottom there is a calculator to work it out, have a go

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#instant

Baldur wrote: »

Roughly £1017.90 before tax, if you add £40 per month on the 5% fixed rate account.

Sorry for being a total n00b but I am brand new to money saving, haven't saved a penny as of yet.... how do I know if I pay higher rate or lower rate tax or even if I need to pay tax?

natman

Sorry students, you aren't special, you pay tax just like anyone else. The reason many people assume student life is tax free is that no-one pays tax on the first £6,035 of income earned in the year, and as many students don't earn that, they never pay tax. However there is one piece of good news; neither the Student Loan nor the Maintenance Grant count as income, therefore they're untaxed.
If you earn less than £6,035 and only work during the holidays, ask your employer for a P38(S) form and you'll be paid tax-free. If you work throughout the year, then you need to pay tax as you earn; however contact the tax office to reclaim any overpaid tax at the end of the tax year (6 April).
Also, if you do save, make sure you use your tax-free Individual Savings Account (ISA) allowance to minimise the amount of tax you pay on savings (see the Best Mini-Cash ISA article). You may ask ‘if I don't pay tax, why bother with an ISA?' The answer is simple, you mightn't pay tax now, but probably will once you start working. You're allowed to save £3,600 in a mini cash ISA each tax year, so by putting it in there now, you're protecting it for the future.

If your income (this excludes loans / grants / parental support, but includes interest) is less than £6,035, you can sign an R85 form (verbal declaration accepted by most banks) with your bank to have interest paid gross. This applies to current accounts too.

ISAs can still be good for non-taxpayers, especially if your savings will remain in tact after you finish studying, because this means you will have more tax free interest income when you start earning.

If you think it's likely your savings will be spent during the year, and you are a non-taxpayer, chase the best rate and don't worry about ISA.
Whether you pay income tax or not depends entirely on your income, whether you are a student or not has nothing to do with it.