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Savings options on £2000 pm budget

danieltanner
Posts: 6 Forumite
Hello, I’m looking for some savings advice,
My wife and I (newly wed) are anxious to save some money for our future but are unsure how to proceed. We currently have no money (so bonds or initial deposits are out) but are both currently working. If we run a (very) tight ship we could save up to £2000 per month. We could afford to compromise access to the savings (i.e., notice withdrawal clauses, and fixed term accounts up to 3-5 years are ok for us) to avail of better rates. I realise cash ISA’s are an option but only up to £3,600 each per year. Most of the regular saver accounts (with good interest) seem to have a maximum £250-£500 per month instalment limit and are advertised inclusive of one year bonus rates.
What are our best options? Will it be best to juggle ISA and saver accounts to get the best rates?
The following is the best solution I can find for our £2000 per month savings budget:
1) £1000 per month to Halifax Regular Saver at 4% (AER) (two accounts with monthly instalments of £500 pm each, which is the maximum)
2) £600 per month into Barclays Golden 3.61% Online Cash ISA account (two accounts with monthly instalments of £300 pm each, which is the maximum)
3) £400 per month to Alliance & Leicester 3% online saver issue 4 (one account to cover the remainder of our monthly budget)
This would require setting up 5 accounts and these might have to be moved each year. Is this a sensible option? I would appreciate all advice.
My wife and I (newly wed) are anxious to save some money for our future but are unsure how to proceed. We currently have no money (so bonds or initial deposits are out) but are both currently working. If we run a (very) tight ship we could save up to £2000 per month. We could afford to compromise access to the savings (i.e., notice withdrawal clauses, and fixed term accounts up to 3-5 years are ok for us) to avail of better rates. I realise cash ISA’s are an option but only up to £3,600 each per year. Most of the regular saver accounts (with good interest) seem to have a maximum £250-£500 per month instalment limit and are advertised inclusive of one year bonus rates.
What are our best options? Will it be best to juggle ISA and saver accounts to get the best rates?
The following is the best solution I can find for our £2000 per month savings budget:
1) £1000 per month to Halifax Regular Saver at 4% (AER) (two accounts with monthly instalments of £500 pm each, which is the maximum)
2) £600 per month into Barclays Golden 3.61% Online Cash ISA account (two accounts with monthly instalments of £300 pm each, which is the maximum)
3) £400 per month to Alliance & Leicester 3% online saver issue 4 (one account to cover the remainder of our monthly budget)
This would require setting up 5 accounts and these might have to be moved each year. Is this a sensible option? I would appreciate all advice.
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Comments
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You seem to be missing both stocks and shares ISA and pension.0
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You can open up more than 1 regular saver0
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Barclays have a 6% regular saver, allows monthly deposits of £250. Hope that helps.Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
Another 3% shaved off 10/12/08
ANOTHER 4 % June 09:beer:0 -
In response to the advice received:
Jamesd, I have considered the stock and share ISA but don't want the added risk. The pensions, although tempting, would tie up the savings for too long. I suppose I would like to save a lump sum in the shorter term(3-5 years), until my future is more clear (maybe for a house deposit or to buy a car).
Lokolo, my suggested plan has already a regular savings account for both my wife and I. I don't think each of us can open more than one account each?
Thriftymomma, the Barclays regular saver would be ideal, but only allows a maximum monthly input of £250, so I would require 8 accounts for my budget! This is my big problem, finding a good return savings of £2000 per month.
Thanks for your responses, I greatly appreciate all the help and advice.0 -
No what I mean is:-
You can open the Halifax Regular Saver x2 (each for you and misses), then open Barclays Regular Saver x2
Thats £1500 a month done for. (Halifax = £1000 - £500 each, Lloyds = £500 - £250 each)0 -
No what I mean is:-
You can open the Halifax Regular Saver x2 (each for you and misses), then open Barclays Regular Saver x2
Thats £1500 a month done for. (Halifax = £1000 - £500 each, Lloyds = £500 - £250 each)0 -
The other £500 per month could be paid into 2 x 8% HSBC Regular Saver accounts @ £250 each, if you both have/can meet the requirements for opening an Advance current account with them.
Which is a minimum of £500 a month going into a current account.0 -
Is our best option really to open 5-6 regular saver accounts and change them each year? Would this affect our credit rating in any way? I'm also concerned that not showing loyalty to any of these banks might compromise my ability to attain a mortgage in the future (should it be required). We would like to save regularly but won’t require access to the money, are there accounts specifically designed for this?
Basically, does anyone know what is the best savings account with a maximum monthly limit of £1000-£2000, which offers better interest if the funds are not withdrawn over the term of the offer?
Many thanks for all the replies!0 -
I banks, loyalty doesn't pay. They're there to make money off of you, not give you freebies.
Doesn't effect credit rating.0 -
p.s open two hsbc accounts through top cashback, that will give you a 100 pounds, just pay in 500 pounds and take the money straight out this meets the requirement. (That is assuming you do not bank with hsbc currently)Mortgage Start jun 2007 £88500 Outstanding Balance £51000
Overpayments 2007 Nil 2008 £1040 2009 £7853 2010 £10000 2011 aiming for £18000 (6k so far)
The Early Bird Gets the Worm, but the Second Mouse Gets the Cheese!!0
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