How much can you save?

zendrix

Hi Everyone,

Just got sent the link to this website this weekend and it's just what I need. Like a lot of you guys I've decided to start saving for a deposit on a house. Have been working out my budget and reckon I can save around 1000 pounds a month, with the aim of 20,000 in two years. As I live in London that will probably just be about enough to secure a run down bedsit above a chip shop!;)

Anyway I have a quick question, that I couldnt quite answer myself. With my new saving plan I will be able to put away 2,000 pounds up until april 5th. Is it worth putting this straight into a cash isa for these two months, and then start putting money into a high interest account such as A&L in the new tax year? OR should I just open a savings account now and wait until the new tax year to open up an isa?

This answer is probably very obvious, but I'd really appreciate some advice. Good luck to everyone else out there saving for these deposits, and cant wait for the house warmings !!

iamsam

zendrix wrote:

With my new saving plan I will be able to put away 2,000 pounds up until april 5th. Is it worth putting this straight into a cash isa for these two months, and then start putting money into a high interest account such as A&L in the new tax year? OR should I just open a savings account now and wait until the new tax year to open up an isa?

As far as I'm concerned the answer is very simple. ISA.

You get a £3,000 cash ISA allowance per tax year. If you don't use it, it is lost. Therefore, by putting as much as possible (£2k in your case) into an ISA before April means that it is then tax free, and you can put another £3k after April (what you put in there each year can stay tax free forever more - as long as you don't withdraw it, you can transfer between ISAs but that's a different story!). That's £5k earning interest money tax free, instead of just £3k (if you'd waited until april).

Can I also suggest the National Savings & Investments Direct ISA (click here).

miss_angie1

The Olympic Savings challenge sounds fab and I definitely want to be involved. Can you let me know the different levels and I will alter my signature.

Angelselondon

Welcome Zendrix enjoy the thread, it's a friendly bunch in here and quite addictive. I started the same way as you last year, personally I put £3,000 in an ISA before 5th April then on 6th April started putting in more into the ISA for the next tax year. Once I maxed that out I started looking around for a High interest savings account. At the time I went for ICICI, which I'm still with. There are others out there now. I intend to open up the Lloyds 8% over 2 years, but I think that finishes in March. Whatever you decide to do good luck and enjoy the posts.

miss_angie1 If you want a copy of the spreadsheet that works out the percentages for you, you find out what the levels are for you, as it is based on percentage of disposable income.

See my signature for details and email me for the sheet.

Thanks

moneysavingwannabe

Hi,

Please can you send me the spreadsheet too. I will email you.:j

Thanks

zendrix

Angelselondon wrote:

Welcome Zendrix enjoy the thread, it's a friendly bunch in here and quite addictive. I started the same way as you last year, personally I put £3,000 in an ISA before 5th April then on 6th April started putting in more into the ISA for the next tax year. Once I maxed that out I started looking around for a High interest savings account. At the time I went for ICICI, which I'm still with. There are others out there now. I intend to open up the Lloyds 8% over 2 years, but I think that finishes in March. Whatever you decide to do good luck and enjoy the posts.

miss_angie1 If you want a copy of the spreadsheet that works out the percentages for you, you find out what the levels are for you, as it is based on percentage of disposable income.

See my signature for details and email me for the sheet.

Thanks

Thanks for the quick replies Iamsam and Angelselondon. I am applying for the A&L ISA this evening. Deposit here I come!

save-a-lot

Hi Zendrix

The NS&I Direct ISA is probably the best buy at the moment

jamtart6

I might have to revise my olympic goal if i buy a house this year.....! the spreadsheet is great help - so much easier than working it out myself. and may i just say im 18.8% on my way to earning my olympic medal!!

Angelselondon

jamtart6 wrote:

I might have to revise my olympic goal if i buy a house this year.....! the spreadsheet is great help - so much easier than working it out myself. and may i just say im 18.8% on my way to earning my olympic medal!!

Glad you like the Spreadsheet. Good luck with the Challenge

Dr.Lou

Hiya,

I think I would like to join this thread and the Olympics! Hope I am not too late!

Have a bit of a long term savings goal- probably over the next 4-5 years, so hopefully this will keep us motivated.

Angelselondon, I will PM you for the spreadsheet if that is ok.

Thanks x