what to do with my money?.........

Jacklin2001

hi,

i want to start saving some money each month! (hopefully around £200 a month)

i currently have £700 in my ordinary bank account that i have saved up but dont know what to do with it.

i have been told about ISA's but i havent got a clue which one is best or anything like that.

so i have £700 to start with and will be saving £200 a month from now on. plus i want to be able to take money OUT of it any time without any notice.

any help would be greatly appreciated with info on ISA's or any better way of saving this amount of money.

Thanks in advance

Andy

Slayerx

Well the bank of Slayerx pays no intrest but is great

On a more serious note ISA's are great you can put up to £3,000 a year in and its tax free with intrest at the moment of around 5%. The best one right now seems to be with the Alliance and Leicster.

click me

Scully's_Girl

I agree with Slayerx. I moved my cash ISA to A&L as its the best rate going at the moment. Quick lesson on cash ISAs:
You can put in up to £3000 / year. All the interest you get is not taxed (a regular savings account will charge you 20% if your a standard tax payer & 40% if your a higher taxpayer).
Pro: You can take the money out when you want
Con: Once you take it out, you cant top it up again. You can put in £3000 total a year, so if you put in £3000, & take out £200, you cant put the £200 back, youre done for the year.
Later on when youre comfortable you can think about graduating to a shares ISA, which is a maximum £7K & can give potentially higher returns.

£200 / month = £2400 / year, so a cash ISA might be excellent for you. You can use the £600 in a normal savings account (paying high interest of course) & use that as a buffer so you dont have to withdraw from the ISA.

grumbler

Where to start with savings Martin's guide ...