Where best to save?

snoppydog

Hi all,

I'm looking to save £12,000 in the next 12 months and want to know where best to save.

I know Martin always says start saving with an ISA but with how low the interest rates are at the moment, I'm wondering whether to bother and instead leave the money in my abbey current account paying 6% although the balance has to stay at £2,500 or try another account?

Thanks

ses6jwg

1) Use your £3,600 cash ISA allowance. There are some accounts around paying 3.5% interest such as alliance and leicester.

2) What to do with the rest of it is up to you. It depends on a few things such as how easily you need access to the money (can it be tied up?), whether you can afford to lose any, are you a risk taker?

Personally, if it were me I would be using the other £3,600 allowance for stocks and shares and putting it into some investment funds through a supermarket like interactive investor. You can pick and choose your own funds from very low to high risk.

Thats £7,200

I'd probably put the rest into a fixed term bond opf some sort.

fuseboy

not really sure, but when i asked for advice, i was told to first put £3600 into an ISA and go from there.

With the Alliance and Leicester account I believe you only get the 6% on the £2500 and anything over earns 0.10% - at least that's how i understand. Also, you have to deposit £500 a month into the account - don't believe this has to stay in the account though. Would love some proper clarity on this account though.

If you work, the monthly savers might be worth looking at - but you'd have to see if you can access your money or if it's tied up for the yr (if that affects you).

If you don't mind tying up your money, a Savings Bond might be worth a look.

Sorry to be vague, this is similar advice to what i was given a few days ago.

Good luck.

G_M

Would love some proper clarity on this account though.

Full details here.

fuseboy

looked at that thanks. was i right sayin that you get the full 6% up to £2500 and anythin over £2500 gets 0.10% interest? (so if i had £3k in, id get 6% on £2500 and just 0.10% on the £500?)

think that's the main thing i was unsure of.

thanks - sorry snoppydog for hijacking ur thread :-)