New to Saving

Shorrtybearr

Hi,

I'm new to saving and recently got into a long drawn out conversation about mortgages and how vital they were to getting a home etc etc

I do plan on getting one but not yet obviously (only 21 ) however I doubt that'd be my only problem, I'm pretty sure I have practically no credit score which I am actually working on (having got T-mobile to give me a phone contract to start things off).

Anyway to kick start my saving I opened an ISA with ING yesterday, it was instant access and was recommended by this site, so I'm hoping it'll do its job admirably.
Now I'm looking into savings accounts, I was thinking regular saver after I've filled my ISA however I do have a few questions. I currently have a current account with Halifax at (I think) 1.5% although I never seem to notice interest going in or out oddly

Anyway the questions are:

Concerning ISA's:

1. If I fill the ISA and then transfer the money to another ISA after a year or so for a better rate does that count as my 3.6k allowance or is it as I think it is and if as long as I don't withdraw and then deposit I will continue to get my yearly allocation?
2. If so, will the interest free ISA savings be made on the entire sum or just the newly deposited allocation?

Savings accounts:

3. If I use the 1k regular savings account with Halifax for the £5p/m payment can I move the money around between more of the same type accounts internally or does it have to at least leave the Halifax and return? I.e. NatWest and back at the end of each cycle.
4. Is the RSA from Halifax subject to a credit check/minimum salary etc?
5. Is it worth it to keep adding cash to the RSA and continuously moving the 1k around or keep the bare minimum of 1k in there and just move that around by itself?
6. If its not worth it, where should the other money be kept? a regular savings account I presume, assuming the ISA's been filled etc.


Thanks for reading and in advance for any answers, wont be able to reply until the morning....starting work now

Take care guys,

SB

Lokolo

1 and 2. Ok normally you transfer money by BACS (you enter the account info and it sends it over the net). However ISAs are different. If you want to transfer you do it via an ISA transfer form. You fill out a form which you will get from the new provider. When it transfers it does not count towards allowance. So this year you have £3,600. You transfer it this time next year (you can transfer as many times as you like though!), when the money transfers it will not use up the allowance for that year (so 10/11 if you did it in a years time).

Also interest gained inside the ISA does not count towards allowance.

As long as the money stays in ISA status it will earn tax free interest forever (unless the government stops ISAs)

3. No you can continue to move the money whereever, as long as it goes in its fine, doesn't matter where it continues to go.

4. They may do a credit check (usually only done when asking for credit though), and ask you questions about your job, the more info you give the more 'loyalty' you get (internal scores help with upto date information). Unless you have run up bad debt (for example, not paid TMobile bills), you won't have a problem (unless you apply for a £10,000 overdraft or something stupid)

5. You don't have to keep the minimum of £1k in, just £1k has to go in (but can go straight out).

6. If you have the spare capital you can have the Halifax £5 a month thing and a regular saver.

e.g. £1000 -> move to Halifax £5 a month -> move £250 (or however much you can afford) in a regular saver, put the rest back in Natwest *repeat*

Shorrtybearr

Lokolo wrote: »

5. You don't have to keep the minimum of £1k in, just £1k has to go in (but can go straight out).

thought i'd quickly check before i left, thanks for the reply.

With question 5 what i was asking was:

Is it worth transfering up to my limit per mnth for the RSA a keep doing so every month to get the high intrest rate on as much cash as possible or just leaving the bare minimum 1k and switching it around more of the same accounts for the £5p/m? OR a combination of leaving as much money is as possible and switching the 1k around aswell

Thanks again

Take care,

SB

Lokolo

Ok I'll just make this a bit clear.

The £5 a month account isn't a savings account, its a current account. All it asks is to deposit £1000 a month into the account and you will recieve £5. The money does not have to stay there. You will not get extra for having £2000, £3000 or whatever. You just get the £5.

From what I remember you can open a number of these (as you've said) and yes you can move the £1000 around.

So you get paid £1200 a month into Natwest. You transfer £1000 to Halifax RCA 1, you then transfer the same £1000 to RCA 2, then to RCA 3 and so fourth.

You can then put £500 into the account below, and then £500 back into Natwest to do what you like.

So you'd have 3 RCA (Reward Current Accounts), which give you £5 each, and then interest from the regular savings account (which will depend on how much you put in there).

---

A regular savings account is a little different. The money you put in cannot usually be withdrawn until the end period has occured (usually 12 months).

An example of a regular saver is here:

http://www.halifax.co.uk/savings/regularsaver.asp

No withdrawals or missed payments - during the 12 months otherwise this account will close

The more money you put in these, the more interest you get.

Shorrtybearr

Lokolo wrote: »

Ok I'll just make this a bit clear.

The £5 a month account isn't a savings account, its a current account. All it asks is to deposit £1000 a month into the account and you will recieve £5. The money does not have to stay there. You will not get extra for having £2000, £3000 or whatever. You just get the £5.

From what I remember you can open a number of these (as you've said) and yes you can move the £1000 around.

So you get paid £1200 a month into Natwest. You transfer £1000 to Halifax RCA 1, you then transfer the same £1000 to RCA 2, then to RCA 3 and so fourth.

You can then put £500 into the account below, and then £500 back into Natwest to do what you like.

So you'd have 3 RCA (Reward Current Accounts), which give you £5 each, and then interest from the regular savings account (which will depend on how much you put in there).

---

A regular savings account is a little different. The money you put in cannot usually be withdrawn until the end period has occured (usually 12 months).

The more money you put in these, the more interest you get.

Thanks very much, that cleared alot up for me. I thought the RCA was actually a savings account. The reason i've been calling it RSA instead

Lokolo

Shorrtybearr wrote: »

Thanks very much, that cleared alot up for me. I thought the RCA was actually a savings account. The reason i've been calling it RSA instead

Good luck.