Where to put it ????

lkwhite

Hi there money saving experts :j

Help needed please.......

I am married, have a baby, have regular income, no debts and about £15,000 in cash to place ...
I am no good with maths or reading the small print.... Far too confusing for my few brain cells

1. Child trust fund voucher? Im thinking just put that into a stakeholder and hope the economy does good over the next 18 years - ideas??

2. Savings for baby ? I want to save for her but want to be able to access it if theres an emergency. Am pondering over the Halifax Childrens Regular Saver at 8% for 1 year. After this one year can I move it to a different bank to get a better offer or will it always have to stay at the halifax? Can I access this account as the signatory???

3. My savings? I am thinking along the lines of Barclys at 6% - (can I open this account with a any balance and just add the required minimum £20 a month or does it have to open at £0?) - at 6% even with tax deductions it still works out better than an ISA at 3.5%. But if I can only open with £0 into Barclays saver then open two ISAs in mine and my husbands name. Or am I completely confused about all this??? Are there any savings options Im missing? What should I do with the rest of the money? Where is good to get an ISA?


So many thoughts / so many options / so confused !!!!! :mad:

Many thanks in advance of your replies

L

xyz123

lkwhite wrote: »

Hi there money saving experts :j

Help needed please.......

I am married, have a baby, have regular income, no debts and about £15,000 in cash to place ...
I am no good with maths or reading the small print.... Far too confusing for my few brain cells

1. Child trust fund voucher? Im thinking just put that into a stakeholder and hope the economy does good over the next 18 years - ideas??

2. Savings for baby ? I want to save for her but want to be able to access it if theres an emergency. Am pondering over the Halifax Childrens Regular Saver at 8% for 1 year. After this one year can I move it to a different bank to get a better offer or will it always have to stay at the halifax? Can I access this account as the signatory???

3. My savings? I am thinking along the lines of Barclys at 6% - (can I open this account with a any balance and just add the required minimum £20 a month or does it have to open at £0?) - at 6% even with tax deductions it still works out better than an ISA at 3.5%. But if I can only open with £0 into Barclays saver then open two ISAs in mine and my husbands name. Or am I completely confused about all this??? Are there any savings options Im missing? What should I do with the rest of the money? Where is good to get an ISA?


So many thoughts / so many options / so confused !!!!! :mad:

Many thanks in advance of your replies

L

I dont know the answer to the first one so will start with second one.

2) If the account is still availalble, then yes after 12 months you can move out the money at any other bank. I am pretty sure that being a childrens account you can access as parent/guaridan of the children.

But please note that many people misunderstand the regular saver account. the interest rate is high and is attractive but that is because of the way the account works. As you are gradually puting the money in the account only the in the last month you will have full balance in other words the money that you put in first month stays in account and earns interest for 12 months, second months payment only earns interest for 11 months and so on. So do not miscalculate the interest from this account. Reoughly speaking you will get 8% on half the total amount that you put in a year (so for example if you put full 250 in the account every month you will roughly get interest of 8% on about 1500 (half of 3000).

If you want to calculate interest look at below link:
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

From what i can see you have a lumpsum amount so a regular saver may not be the most attractive option for you.

3) Again consider what i said in previous post regarding the calculating interest. In my opinion ISAs are always one of the best saving options. Most important thing is to ask youself if you need instant access to your money or not. If you dont then look at 1 year fixed bonds or 1 year fixed isa (halifax does those at just above 3% i think).

Hope that helps.
Cheers