New and Overwhelmed!!

Calchumboi1989

Hi all! My name is Callum, I am 19 and just entered the world of 9-5 ( what an anti climax it was).
I've just started earning real money, and now I am looking to maximise its potential!
Most of the site seems to be aimed at people who have dealt with basic savings account stuff before...I however have no clue what most of you are on about!

After reading a few articles, I have applied for a cash ISA with alliance and lester. This seemed like a good place to start as it not only gets me more interest, but also gives the tax man less :P I also have a budget, putting X amount away a month while leaving myself Y amount to play with.

But the question I am asking you now is: What next? should I search around for the best current account? ( currently with Abbey ) or should I sort my savings account first ( also with Abbey )?

Any tips to a newbie in the world of saving money would be fantastic!

Thanks in advance! Callum.

Lokolo

Not sure who thanked you... however:

- You know you have cash ISA allowance of £3600 per year. Fill that up first. The allowance runs from April 6th to April 5th.
- Current accounts, theres hardly any difference between them, so if you already have one and happy with it, keep it.
- Look around for savings accounts, when you start being able to get regular amounts, a regular saver might be best for you.

www.moneysupermarket.com/savings <-- for best rates.

High street banks don't usually offer the best rates for long (if they even do), so usually the internet comparison site is a good place to start.

p.s. if you have only just started or started after April, in your fulltime job, you maybe entitled to a tax refund. Come April, when you get a P60, post the figures somewhere on the board and someone might be able to help. Alternatively, go to http://listentotaxman.com/ and type in your final gross figures, see how much tax you've paid and compare to the quoted numbers.

cottager

Lokolo wrote: »

Alternatively, go to http://listentotaxman.com/ and type in your final gross figures, see how much tax you've paid and compare to the quoted numbers.

I'd never been here before so wouldn't know what it consisted of or looked like, but it seems to have only search results?? -- like an abandoned domain.

Nick_C

Hi Callum and welcome to the forum.

Congratulations on getting an ISA sorted out. Bear in mind that you can only put £3,600 into it each year. If you put £3,600 in and withdraw £500, you cant put the £500 back later in the same tax year. So its a home for long term savings.

Definitely look around for the best current account. For example, Halifax are launching a new current account on 9 February that pays £5 you a month, but charges you £1 a day if you are overdrawn. This is a great account if you can guarantee you will never want an overdraft - £60 a year just for banking with them, but the overdraft charge is punitive. You need to deposit £1000 each month to qualify for the reward, but you don't need to keep the money in there. So just having your salary paid in will hopefully cover it.
See http://www.halifax.co.uk/bank-accounts/reward-current-account/

Alliance & Leicester pay a bounty of £100 if you switch your current account to them, but you need to be 21. Not one for you yet, but it gives you an idea of the sort of deals that are available.

Try to get a cash back credit card - its possible to get 0.5% (Marks & Spencer) to 1% (Egg) back on everything you spend, if you qualify for the card. Again, your age might be against you here. Also look for credit cards offering long interest free periods (10 months with M&S). Pay the minimum each month, put enough into a short term savings account to cover the bill when you eventually have to pay it off.

Try to get a Nationwide or Post Office credit card to use when you go abroad. Most credit cards charge a hidden conversion fee when your spend in a foreign currency, Nationwide and the Post Office do not.

When you get paid each month, work out how much cash you are going to need for the month ahead, Move it to an account that pays a decent rate of interest - I would recommend Yorkshire Building Society Internet Saver, as this comes with a Link cash card, giving you easy access to your money.

Keep reading the forums and the main site, you will find more details on all these areas and more. And above all, review your options regularly to make sure you are getting the best deal. The banks make their money (or used to make money!) out of people who open the best account at the time but never review it.

jem16

cottager wrote: »

I'd never been here before so wouldn't know what it consisted of or looked like, but it seems to have only search results?? -- like an abandoned domain.

Correct link should be;

http://www.listentotaxman.com/