Don't know where to start

colin_young_2

Hi

My wife and I have pretty much managed to live for less than what we earn and also have 2 kids. One is 8 and the other is 8 months.

We don't put any money away for ourselves or the kids and want to start. We could probably afford about £100 per month just now but I don't know where to start.

I was going to call Barclays and setup 3 accounts and spread the money across them.

Is that a good idea?

I know its not a lot of money but surely its better than nothing

Cheers
Colin

natman

Hi Colin, Welcome to the Savings board......

Ok, I suppose my first thoughts are what are you saving up for? Is it rainy day money, money for holidays etc......
My first thought is for you to try and get into a good rountine and ask yourself, will you need access to this money.

There are a variety of savings accounts that offer instant access, at around 2.8%, where you could get at your money very quickly. AA Savings and EGG savings offer 2.8% ( i HAVE BOTH THESE ACCOUNTS AND LIKE THEM )
Theres also a regular savers where you put a minimum away each month, say in your case £100, but these accounts are a bit more strict and its harder to get access to your money. A decent one at present offers a 4% return with Norwich and Peterborough - http://www.nandp.co.uk/savings/regular-savings/regular-saver/

Its a difficult call really as even though it may be only £100, you dont want that money tied up, if you need it for something like the washer machine playing up.
Perhaps an instant access, with good flexibility may be the way forward, at least it will get you into a routine.
Some people may say open an ISA which is tax free, and that may be an option.

You mention Barclays, but without knowing the actual accounts, I am unsure as to what your thoughts are.
Barclays are generally poor at offering savings products , although the golden ISA has been a best buy in the past, but has dropped recently.

colin_young_2

Thanks for that

I should have said in my original post. The £100 that I would like to put away is money that I am happy to say goodbye to for quite some time.

If not having access to it leads to better returns then that is exactly what I am looking for.

As for Barclays it was more a case of giving them a call to see what they had on offer because my in laws use an advisor from there and thought they may be good to deal with. If they aren't performing then I will stay clear.

Cheers
Colin

colin_young_2

anyone?

... please

lr1277

If you are happy to say goodbye to the money are you thinking of saving money or investing money with its associated risks?
Having said that, these days there are also risks to putting your money in a savings account.

MeanExpat

Regular monthly savings (max. £250) at Barclays pay 3.2%
Not bad and easy if you bank with Barclays already.

cloudninety

I agree with the poster above, you need to decide if you want to invest or save your money since you are looking at a long-term horizon.

If you are wanting to save, a regular saver could be an idea since you are wanting to contribute monthly instead of a lump sum (e.g. Nothern Rock @ 5% for 12 months) as this could give you a better interest rate than the cash ISA's at present (though not if you're a higher rate tax payer). You could then consider a ISA once you've saved up a lump sum, so that you start accumulating tax-free savings.

You could also consider NS&I ILC, depending on what your view on inflation going forward is. Minimum purchase is GBP100.