saving

Legacy_userLegacy_user Forumite
0 Posts
MoneySaving Newbie
sorry to be a pain but after reading a few of these post im still kinda confused at savings.
ive just been give sum money (£37k) and i want to wisely invest it. (although i need some money for a car and a bike..which wont come up to more than £10k car soonish and the bike can wait until next year)
the rest of my money i would like to save for a house. Although i dont plan on buyin a house for the next year or 2 it gonna b hard planning when exactly i will be wanting 1.
i was lookin at that cahoot 5.5% current account which seems good but as its a web based account how do i know my money is secure (compared to say halifax).
as i have money coming in from my job the money being saved isnt going to be touched at all (until house buying time). If only i got taught these things at school it would be a lot easy now....any help would be much appreciated (ive already used my £3000 ISA allowance this year btw)

Replies

  • Hi, rygon :)

    I would suggest splitting your £37k - minus the cost of the new car - into the Halifax Web Saver account currently paying 4.70% and the ING account which will go up to 4.85% on 1st August :)

    The Cahoot 5.5% savings account is good, but this high interest rate will only last 12 months, and then the rate will probably drop quite a bit.

    Hope this helps.

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • lisyloolisyloo Forumite
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    The Cahoot 5.5% savings account is good, but this high interest rate will only last 12 months

    12 months is a long time in my opinon to be turning you back on high interest.
    Especially if you have a lot of savings.

    Personally I would go with Cahoot but be prepared to switch for a year.

    It's obviously entirely up to you, but from my point of view if it's enough to pay for a holiday for 30 minutes work then it's worthwhile.
  • SystemSystem Forumite
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    thanx...im just tryin to get my head around the whole thing. my parents who have helped me before have always used halifax as they have never had any problems with them. i asked about going for higher interest banks and switchin around (like it says on this website) but they told me its not worth the hassle as you dont really gain that much from them
  • SystemSystem Forumite
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    ahhhh!!!! just tried to open a cahoot account and i have to be 21...well i only need to wait a month. do i get a debit card or do i have to move my money to another account to draw it out.
  • You don't get a card with the Cahoot savings account.

    You have to specify a 'feeder' account. This would, for example, be a current account on which a direct debit is set up by Cahoot.

    Each time you want to make a deposit you ask Cahoot to debit your feeder account.

    I think you can also set up a regular direct debit.

    Withdrawals work in reverse (though I think you can pay out to any account - it doesn't have to be your feeder account).
  • I've just been onto the cahoot website.

    The savings account gives 4.55%AER (no bonuses) and the current account 3.75% AER. I can't find an account that offers 5.5%. What is it called?

    Also on 1st August ING says that its savings account still only pays 4.5% AER.
  • martyn4764martyn4764 Forumite
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    Hi

    I was confused myself... the original post is actually 2 years old/
  • Thanks. Well spotted!
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