Savings Advice

Funkygibbon

I would like some advice please.

I currently have £2250 that's just sitting in an account, I would like to move it so I get better interest rates! (currently get 0.1%) I will also be in a position to save about £750 a month but might not be able to do this every month. I shouldn't need to withdraw this money as it's for a deposit on a house so need it to grow to about £20k

Thanks for your advice in advance!!

KTF

Have you read the article on the savings fountain here:

http://www.moneysavingexpert.com/savings/which-saving-account

Funkygibbon

Thanks for the link! I'm confused even more now!! For some reason I'm not very good at understanding the savings market. Should I stick £3600 into a cash ISA then save into a regular saving account. Also I have a shares account so don't mind having a dabble on the stock market.

Lokolo

ISAs are good for taxpayers. Any other savings accounts will be deducted tax (20% for normal taxpayers, 40% for higher rates). Obviously as you have seen, only a pay of £3,600 a tax year (to go up to £5100 April 2010). A regular saver is then best for those that have a regular income.

Go for it.

G_M

If you are a tax-payer and don't yet have an ISA for this year, then start with this.

An instant access one, or given your plans, perhaps a fixed interest one. Either way, find the highest-paying ISA you can. Put you whole £2250 in, and add to it till you've put in £3600 (max allowed).

Then open a (non-ISA) regular saver (there's a thread here just on these accounts), again looking for the highest rate available.

rb10

G_M wrote: »

If you are a tax-payer and don't yet have an ISA for this year, then start with this.

An instant access one, or given your plans, perhaps a fixed interest one. Either way, find the highest-paying ISA you can. Put you whole £2250 in, and add to it till you've put in £3600 (max allowed).

For most fixed rate ISAs, you won't be able to put £2250 in and then add more as and when you get it, as they are generally limited to only allowing one deposit. The notable exception to this is the Halifax ISA Direct Reward, which gives you a fixed interest rate, and lets you add more money later (and withdraw if you need to).

littlemrtinkle

i would start with an isa also , and would also recommend the halifax fixed 3 % or the barclays golden tax haven 3.61% (not fixed)