Ok, I seriously need to start saving now...

hereistheguy

Hello!

Ok let me first introduce myself, im Nathan, im 17 and i'm currently studying for my A-Levels and im in my last year now.

Heres the deal; I want to go to university next year and that's all pretty much sorted but I really need to start saving for it now properly.
I have about £1000 saved from when i was younger which is in two accounts (800:200). The £800 account is with National Savings and the other with Llloyds TSB (Boo to them! :P).

I also work for Starbucks and I get paid every two weeks. My bare minimum wage from this (without working extra) is £161.60.
Also in term time I get £30 EMA every week and £100 bonus every end of term.

My "essential" outgoings are £20 a month gym membership (that will not change for the year).
Petrol is around £20 every two weeks, depending (more over summer).
Then the rest I just spend on whatever I want (I have a real bad habit for clothes!).

Ok so I would REALLY appreciate a kick up the bum to make me save and how to do it. Actually writing it like this has helped me see that really I just waste my money.
So yes anyone got ideas for a student bareing in mind I still need to reserve some for my own "spending whatever I want" (is that allowed!?).
Also advice on accounts etc.
Basically i just need like a saving plan thing! lol

Thanks a lot guys! I really appreciate you help!

*EDIT*

Also forgot to note, Christmas will require spending and Im going to Russia in October for 2 weeks so will need about £200 spending money.

Aww this sounds a lot

someone

First queston, Do you have a Lloyds TSB Current acount as your main bank account?If you do then can open a very good Monthly Saver with them. With this acount (unlike others) you can skip payments and withdraw money without any charges, it runs for up to two years and pays 8%.

Most likely the National Savings account is whats called an "Ordinary Account" that was withdrawn. It is paying a rubish rate of 0.95%. You are actualy loosing money in this acount because the rate is less than 2%. Pop to the post office and ask how to close this acount. Your passbook will be sent via the post and you will get a cheque back.

Ok, now for under 18's one of the best savings acounts you can have is a Natiowide e-Saver. The best thing with these are you can open them with just £1 and you can have as many as you like. I have one for diffent things im saving for. You have to have a natiowide account (which will give you the best way to get money out when on holiday) but it gives you 4.55%. Most of the account Martin mentions are for over 18's only.

So the folowing are good accounts to have
Lloyds TSB Monthly Saver
Nationwide FlexAcount
Natiowide e-Saver

and close your National Savings Ordinary Account


any other ideas guys (and girls)

hereistheguy

:eek: I am so shocked about that national savings becasue i really thought they were high interest! I'll check tomorrow at my book thing!!!
My Llloyds TSB is just an under 19's current account. Its used as a kind of easy access saving thing, but i dont think that's a good thing for me because im always tempted to take out 'a tenner' here and there to buy silly things before payday. I really need to learn!
Its not my main one, that's with barclays and I dont want to switch with them because I get an Electron Card and its just my general money holding account. (Although im 18 in like 2 months so it might be worth looking!)
I'll also look into nationwide. Wow you've been such a great help thanks!!!:T

Steve_xx

You should consider ICICI Bank with an interest rate of 5.15% AER:

https://www.icicibank.co.uk/index.html

Sorry, I just realised that you are not 18, and so you could not open the ICICI account in your own name. But of course a parent could open it for you.

You should also use your annual ISA allowance that enables you to save £3000 in each tax year without paying tax on the interest. National Savings are currently offering a rate of 5.30% on their Direct ISA. See here:

http://www.nsandi.com/products/disa/rates.jsp

You should use up your ISA allowance first and then put the remainder, if there is any, into the ICICI account.

hereistheguy

haha there will be nothing over £3000! (unless i win the lottery then i wont need to save! :P)

someone

Steve_xx wrote:

You should also use your annual ISA allowance that enables you to save £3000 in each tax year without paying tax on the interest. National Savings are currently offering a rate of 5.30% on their Direct ISA. See here:

http://www.nsandi.com/products/disa/rates.jsp

You should use up your ISA allowance first and then put the remainder, if there is any, into the ICICI account.

You nead to open this ISA with at least £1000

cheerfulcat

Hi, Nathan,

Welcome to the boards! And well done you for wanting to save.

I would suggest a high interest regular savings account, preferably one which doesn't allow withdrawals for a year ( solves the burning hole in pocket problem ). Comparisons here.

HTH

Cheerfulcat

chesky369

If you have a Barclays current account, then you can open a regular saver account which also has a pretty good rate of interest. I think it's 10% for a year.

hereistheguy

Hmmm looked at both options:

Barclays you need to have more than £1000 going in every month.
Lloyds TSB can only invest a max start of £500.

I am going to merge my two "savings" accounts into a new one with a good interest rate.
The only thing i can think of with TSB is to put the rest of my savings money in my current account with them and then make sure the set standing order is a combination of my wages and the money so then it should all work out hmmmm i dunno!!! lol

Im still thiking of the ISA though.

hereistheguy

Ok still a little confused - ISA or Abbey Regular Saver?! Should I wait a few weeks until the interst rates rise? Sorry if this is an annoying post! :S Thank you for your help!

someone

NS&I isa's rate has gone up already to 5.30%