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Have £500 a month to save - what is best option?
ana_3
Posts: 3 Newbie
I am hopeless with money and very new to the idea of saving it! By sheer luck I have managed to get my debt which was at £25,000 last year down to zero and so now am in a position to save at least £500 pounds a month. But where do I start? What is the best option for me? The aim is to have a decent deposit for a house/flat in 2 years time. Can someone advise?
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Comments
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Cant help you i am afraid, except to say i am envous!!! I just wanted to say, welcome to the boards.
This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I am envious too, at the most I am able to save just over £200 monthly.
I would suggest putting £250 a month into a cash-mini ISA, if you don't have one already - Abbey Postal ISA pays 5.10% at the moment - and putting the other £250 into Sainsbury's Direct Saver a/c which pays 5% on all balances. Or you can pay some money regularly into the Cahoot savings a/c which pays 5.5% for the first 12 months the a/c is opened.
Hope this helps.
LeiaI want to be a good saver, but I find it difficult to control my temptation to spend
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I owe £1,247 more than I have in savings
.
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Thanks Judy for the welcome and thanks Leia for the advice.
I didn't know where to start - you've been very helpful!0 -
I would say put it all into a cash ISA until you have used up your annual allowance (£3K). There is no reason to save at 5-5.5% taxable and let the government take some of it when you can save at 5.1% tax-free.
If you are married, you can also put £3K in an ISA for your spouse.
Once the ISA allowance is used up, look for a high-paying savings account. Right now, cahoot at 5.5% is the best around, but rates just went up today, so other accounts will likely be going up -- cahoot almost certainly won't.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
So ING COULD catch up with Cahoot then
. I want to be a good saver, but I find it difficult to control my temptation to spend .
I owe £1,247 more than I have in savings .
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And a Smile ISA (when you have a S current a/c) could also go up to 5%.
Praise God for interest rate rises ;D.I want to be a good saver, but I find it difficult to control my temptation to spend .
I owe £1,247 more than I have in savings .
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So ING COULD catch up with Cahoot then
Longer term - yes.
Right now - no.
They are 0.65% behind and rates just went up 0.25% so there will still be a gap.0 -
Ohh, for an a/c which pays 6.30% gross - with no introductory rate - I think that works out as 5.04% net ;D ;D.I want to be a good saver, but I find it difficult to control my temptation to spend .
I owe £1,247 more than I have in savings .
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Egg rates are going up by the full 0.25% so anyone who got on the last "introductory rate" (BoE rate+0.75%) will be on 5.5% for a while.0
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Praise God for interest rate rises ;D.
Don't let people with a mortgage hear you say that.
I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0
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