Savings pots where do you put it?

KJG123456

leahciM wrote: »

Bit of a broad question I think, but I'll put in my two cents (hope it helps!)
I assume from your post that you want regular access to your savings as opposed to saving a large amount over time?

Going on that assumption, I would suggest maybe looking away from an ISA purely because with ISA's you can only put in £5100, meaning that say you save £5000 one month, then need to pay £3000 for a holiday and withdraw it, for the rest of that tax year you would only be able to put in another £100.

Instant access saver looks more up your alley, I'm sure there's some good ones suggested on this site's homepage.

Firstly the maxmium you can invest in a tax year in an ISA is £10,200 ( stocks and shares £5,100 and cash £5,100 or £10,200 stocks and shares but not both options in the same tax year) If you are risk adverse and require short term access to your capital then cash is the only option. With cash ISA interest rates at an all time low other taxable accounts look more attractive However interest rates wil not stop low for ever and if you miss out on your ISA allowance in a year you cannot go back and invest a higher amount above the allowance at that time at a later date. a few years ago ISA accounts were attracting approximately 7% over a year all that would be tax free. You can make regular payments into a cash ISA so cash ISAs are a good starting point. I therefore would suggest up to £5,100 in a cash ISA for a start and anything over look for the highest interest rate esay access account. If you have not spent or can afford to at the start of the next tax year (April 6th 2011) move more funds into a cash ISA up to the allowance for the current tax year

Bravepants

Hello,

Been lurking for ages on this site, but thought I'd register at last...so hello! To respond to the OP, I don't tend to save money in savings accounts for things like car insurance, house insurance etc. Instead I have two current accounts, one with Natwest and the other with Smile. My salary is paid in to my Natwest account on the last day of the month. On the first day of the month I transfer a fixed lump sum into my Smile current account from which I've set up all my direct debits - having first worked out my monthly budget of course. My OH and I have worked out a monthly budget for household bills, including things like food, heating, road tax, insurances, even a nominal sum for car maintenance etc. I pay car insurance yearly out of this account in one lump sum, but I save for it within the Smile account because car insurance companies typically charge a fee if you pay monthly. Weekly spends like food shopping I put on a cashback credit card and pay off the full balance monthly from my Smile account. So by piggy banking like this I know what cash I have left in my Natwest account for savings and pocket money right at the start of the month without having to think about when direct debits come out. I just let the second account get on with it, mostly by direct debit, or let the balance build up for yearly expenses like road tax etc.!

I have an Egg savings account into which I pay each month, and which I can't see from my Natwest online banking screen - so not tempted to spend! I have a Natwest eISA, and an eSaver account. The eSaver account I maintain with a balance of a couple of hundred pounds, which I use as a contingency to transfer into my Natwest current account if I suspect it might go overdrawn - thus saving paying interest to banks! Well there you go...my banking system!

P (I must get a signature!)

xrjtg

KJG123456 wrote: »

stocks and shares £5,100 and cash £5,100 or £10,200 stocks and shares but not both options in the same tax year

Close: up to £5100 in cash and the rest up to £10200 in stocks and shares.