Need to raise 9000 in 18mths??

the182guy

It's hard to give accurate advice without more info... how much do you have now? Are you starting from 0? Whats your monthly income after tax?

Is there anything you can cut down on? e.g. sky tv, gm membership, cheaper internet, cheaper mobile phone deal etc etc.

Money from interest is not going to earn you much at the moment because of rubbish rates. What else can you do to boost your earnings? Extra job? Sell some non essential possestions?

E.g. one of the top cash ISA's (Marks & Spencer) pays 3.1%. So even if you had £3600 to pay in now and leave in for 12 months it would only earn £111.60 which doesn't look like much off your £9,000 goal.

The high interest savings accounts normally require a lump some deposited each month, so you need to narrow those down by looking at how much you can pay in per month - e.g. from salary.

Best of luck!

sh856531

Although at first glance the 7% looks very generous youre actually only earning that on £1800

Hi claire. I know what you mean, and I understand that its a catch on all these sorts of accounts, however given that (i think) the OP is starting from 0, this sort of account is probably quite easily the best she would get. As Gozo say, the interest rate doesn't make a huge difference on relatively small sums (a couple of hunderd quid over 18months is better than a kick in the nuts though)

The thing I've never been sure about with these accounts, is can you keep going after a year and still get the 7% or whatever. Because after 2 or three years that sort of account would be easily the best savings you can get - you just need to get it going first and then you start getting a good rate on the captial you had from previous years.

Do you know if they change the terms on you after a year. I know they ccan change the interest rate at will anyway, but do they all tend to do it massively so that you'll be getting nothing like you were getting in the first year? I've always wondered about that.

Many thanks

S

EalingSaver

sh856531 wrote: »

Fair enough. I was thinking though - doesn't 7% seem dangerously high to you? Even if they are doing the usual - "no transfers in" limitation.

This is First Direct for gawds sake, not first bank of nigeria ! First Direct is part of HSBC and was the first branchless telephone banking service launched in the UK (and subsequently of course internet - but the internet hadn't been invented as a public service when it was launched).

sh856531

This is First Direct for gawds sake, not first bank of nigeria

Well that's smashing. But RBS, Lloyds, HBOS, Citigroup et al aren't the First Bank of Nigeria either and collectively they and their esteemed cohorts have required the largest bailout using taxpayer money in the history of all mankind....

Given that First Direct's interest rate seems double that of many of their peers, my question still stands. Why are they able to offer this rate on basic cash deposits when my bank is currently offering me 1.5%?

Many thanks

S