Financial Advisor? (the best way to save)

KrisKitten

Sorry, im new to this site so apologies if this is the wrong place to put this.
My partner and I are currently trying to save up for a deposit on a home. We have just under £10,000 already and want to put away about £300 a month from wages towards our savings.
The problem is i've no idea what account to go for, surely ISA's arent for us as we want to add money every month? Or am i misunderstanding what ISA's are? Lol as you can probably tell i'm totally new to this game.
What i wanted to know is would there be any point in talking to a financial advisor about this? To find us the best possible way to save the money? Or would that cost more than it would be worth? Do they even cover this kind of stuff or is it only debt etc?
Or would any of you lovely people be able to help me out?
Sorry for all the questions but I would be eternally gratefull if someone could offer a little advice??
Thanks
Kris x

dunstonh

What i wanted to know is would there be any point in talking to a financial advisor about this?

You should avoid FAs and go with IFAs. However, in this case, paying an IFA to recommend a savings account is a bit like paying a plumber to come turn the tap on for you. IFAs are more about longer term planning and regulated financial services (.i.e investments, pensions etc).

Plus, with interest rates as low as they are, the cost of advice would wipe out any benefit unless your affairs are particularly unusual.

Effectively, you want the best rate for your savings. Its as simple as that.

Reaper

KrisKitten wrote: »

...surely ISA's arent for us as we want to add money every month? Or am i misunderstanding what ISA's are?

ISAs are mostly just like any other savings accounts except:
1) They are tax free
2) You can only add a maximum of £5100 cash to them each tax year (but you can each have one).

Just like normal savings accounts they may allow you to add during the year or may only allow you to put money in once (fixed term, fixed rate accounts normally do this)

I suggest you start by looking at the main savings articles (see the Savings tab at the top of the screen). The account(s) that are best for you depend on such things as your time period, whether you need to be able to withdraw in the meantime, whether you can commit to the strict terms imposed by regular savers accounts and so on.

KrisKitten

Thank you so much for replying
I must sound so dim sorry lol but im trying to learn :P
What exactly are the commitments you must make to a regular saver, is it just a guaranteed amount in each month?
Does it have to be the exact same amount? As in, i know that different accounts have a different min - max input each month, but is it ok so long as you can stay within those amounts?
Sorry if im not making any sense, its getting late and i'v got an 11 month old :P x

jamesd

The commitment depends on the account. Some restrict you to only the amount you start with, others let you vary it.

How many years do you expect it to take to get the deposit you want? Do you mind seeing the amount go down sometimes in exchange for a good chance, but not a guarantee, of getting to the amount you'll need more quickly? What sort of drop percentage would worry you? Do you have past experience of using investments like unit trusts or ETFs or a stocks and shares ISA (that isn't restricted to only holding stocks and shares, it can hold thins that move up and down less)? Perhaps you have them within a pension already and are familiar with them?

I'm trying to work out whether using investments instead of savings accounts for some or all of the money might be appropriate for you. Given the amounts it seems that you're looking at a plan that may take more than five years, which would take you into the sort of time range where using investments instead of savings accounts can be appropriate.

KrisKitten

If im honest im a total chicken when it comes to any kind of gambling, and that is all i see 'investments' as.
The idea that a large portion of what we already have could go up in smoke horrifies me as these savings are all we have and we are a very young family.
Im also totally useless in terms of any knowledge of these kinds of things im afraid
Our ideal time frame would be 3 years, but i say that in the hope we will be able to bump up the amount we are saving to 500/600 a month in the coming months. As it stands i think we are looking closer to 5 years.
Thank you for your advice though
Im so sorry to be a nuisance but do any of you think this account would be a good start?
If i went for this what would happen to my money after the 15 months?
x
ETA - apologies as i am a new user the forum will not allow me to post links, i am reffering to the Santander 15 month fixed rate bond.
It is at 3% interest and says that the restriction is no withdrawals are allowed in that time, but would i still be able to put money in?
Thanks again x

CLAPTON

In your circumstances I would suggest you simply look for the simple instant access ISA with the best saving rate
you can each put 5,100 in your isa so thats 10,200 this year .... are you likely to exceed that this year?
the ISA is tax free compared

fixed rate bonds generally only allow one deposit and then you can't withdraw until the end of the term; but every one is different so you much read the details


although I'm not recommending them some thing simple like the nationwide e-isa is paying 2.75% until next july, instant access and you can pay in a little or as often as your like (up to the max 5100 ) (2.75% tax free is equivalent to 3.43% if an ordinary taxed account)

hollie.weimeraner

CLAPTON wrote: »

although I'm not recommending them some thing simple like the nationwide e-isa is paying 2.75% until next july, instant access and you can pay in a little or as often as your like (up to the max 5100 ) (2.75% tax free is equivalent to 3.43% if an ordinary taxed account)

How about the TSB current account with vantage that pays 4% gross on deposits of between £3,500 and £7,000 and allows multiple accounts? Instant access without penalty and no fixed saving amounts?

KrisKitten

hollie.weimeraner wrote: »

How about the TSB current account with vantage that pays 4% gross on deposits of between £3,500 and £7,000 and allows multiple accounts? Instant access without penalty and no fixed saving amounts?

Are you able to make monthly deposits into that account?
x