£500 to save per month

grubby23

Hi all,

I have planned to save £500 on a monthly basis. Anyone
a suggestion what would be the sensible way to do with
this money? Is there a nice saving account up to £6000
a year that gives me a good return? Or better to invest
into a fund?

Thanks for your comments,
Phil

fairtrade

You could just go for a regular saver account with a BS and move 5,100 into an ISA each tax year.

Primrose

An important question to ask is "What are you saving for?" A car, a house, your long term retirement? Each may need a different time-scale which would determine your saving accordingly. If you opted for two different Regular monthly savers paying the best interest rates you could find, you'll have two lump sums at the end of 12 months to either fund a Cash ISA, with a little to spare in a equity ISA (which should have a 5 year minimum investement strategy to cope with market ups and downs.)
Bearing in mind that we're probably entering a 4 - 5 year Austerity period of higher taxation, including Capital Gains tax, ISAs seem a sensible way of building up some tax free cash, for the short/medium/long term but again, you'll need to look around carefully to get the best deal you can as interest rates are very low at the moment.

MarkFromCornwall

grubby23 wrote: »

Hi all,

I have planned to save £500 on a monthly basis. Anyone
a suggestion what would be the sensible way to do with
this money? Is there a nice saving account up to £6000
a year that gives me a good return? Or better to invest
into a fund?

Thanks for your comments,
Phil

You might consider the Scottish Building Society's Regular Bonus Saver. Provided you meet the terms and conditions it currently pays 4%.

Mark

cslogg

I cannot find a 4% saver on the Scottish BS site.
I can just see a 3% one.

cslogg

MarkFromCornwall

cslogg wrote: »

I cannot find a 4% saver on the Scottish BS site.
I can just see a 3% one.

cslogg

As I understand it the 3% is the bonus, bringing the rate to 4%. See:
http://www.scottishbs.co.uk/dmdocuments/Rate%20-%202010-05.pdf

Mark