saving £100,000 ten years to utopia !!

somethingcorporate

Well done, I've enjoyed reading your thread.

I wouldn't worry about not quite hitting the target last year, seems like you managed to get your moneys worth elsewhere.

I'd draw a line under it and put any additional bonus this year into the 2012 challenge, rather accept last years failings and explain it away than fill up last years and miss this years challenge too! You'll be forever playing catch-up.

Good luck

Spiggle

Hello streethack and well done on your journey so far.

It took me a long time to get my head around saving my money rather than OPing straight to the mortgage (I have the opposite to you as I only pay 0.69% on my main mortgage and 1.49% on the small one). And I get where you're coming from in wanting to have your savings in an ISA for the tax wrapper but dimbo and georgieftb are right and you are in effect losing money by saving into an ISA paying less than your mortgage interest rate.

I have the FD reg savings account too which I've almost maxed this (financial) year. Is your FD current account a joint one? Ours is and that means I can have two reg saver accounts one for me and one for the OH. I think it works out at about £124 net (£156 gross) in interest for each over the year if maxed. The biggie for me was using Martin's calculator which showed that I need a cash ISA paying me more than 6.4% to beat the FD reg saver!

So this year I haven't put anything in for my ISA allowance but I have until 5th April 2012 to use it and my reg savers will mature before then. That is when I'll put the balance into a Cash ISA.

So I suppose what I'm saying is, imho it is better for you to put as much as possible into the FD reg saver(s) but then you're best bet for making money is to OP direct to the mortgage.

You could of course put all your matured ISAs into longer term fixed rate ISAs which pay higher interest than your mortgage interest rate. There is a great thead here which lists all the best deals available.

Use part of your matured reg saver to top up the 2011-12 ISA and if it's an easy access account without penalty for ending before 12 months, transfer that at the same time as the now mature ones. Otherwise wait until it matures and then transfer to the best possible long term fix.

By restarting the reg saver, and possibly opening a second one if the current account is joint, you will have saved in 12 months a substantial part of the ISA allowance for 2012-13 or beaten it significantly if you have two. So you'll still have used your tax free allowance rather than losing it and you'll have funds to transfer into the best rate ISA keeping the tax wrapper for the future.

Other than the reg saver and unless you can find better rates than your mortgage charges then you really should put all other savings into the mortgage as an OP.

Sorry for the length of the post it's just that your way of looking at saving rather than OPing resonated with me albeit in a reverse fashion!

Good luck whatever you decide to do,
Spigs

uzubairu

We've got a joint FD current account and are saving the max in both of our regular savers.
This will generate £250 in interest over the 12 months.
I used the procceds from last year's to fill my 2011-12 ISA.

If this account is still available in October when these mature, we'll be doing it again.

streethack

Some great advise here from fellow money savers.

Perhaps I should clarify why I’m doing it the way I’m doing it. My wife works in the public sector and I work in a volatile manufacturing sector we have both at certain points in time been worried about looming redundancies. This is the reason for me saving rather than over paying the capital off the mortgage, if one of us does lose are jobs this money will be used to take up the slack. This is the only way I am comfortable doing this, I understand I could save money in terms of interest or knock some months off my target of ten years but as it stands this is how I’m going to do it.

Yes I’m am paying the max amount into the 8% regular saver (£300 per month) which will been maturing at the end of Jan, this plus my Christmas bonus and additional savings will be going into my 2012-2013 ISA come April. I will certainly be opening another one of these first direct regular savers the end of Jan and doing the same thing. I have a a current account and a joint account with First Direct, never thought about being able to open two regular savers?

The idea is consolidate the three ISAs into one, there is a currently deal of 3.8% for two year fixed. Not sure how this will work though If I open it in Jan and transfer my matured ISA £5,100 + interest into it then come April when the new year’s allowance kicks in transfer another £5100 in. Then come Oct 2012 transfer my last £5100 + interest into this ISA. Am I able to do this? What about 2013-2014 ISA allowance am I able to transfer this into the same ISA at 3.8%?

Spiggle

streethack wrote: »

... I have a a current account and a joint account with First Direct, never thought about being able to open two regular savers? ...

I thought FD was barmy and rang them a few times to check there wasn't a catch and I really could have two at that rate!

It really is worth getting a second one if you can. I understand why you're doing what you're doing now though.

With regards transfers in of matured ISA you will have to check all the T&Cs of the product you're looking at. Some will only allow one transfer in, others will allow transfers in until they 'close' the product. Best to check with the product.

As far as I'm aware though fixed rate ISA don't allow multiple transfers in, as described by you, as the first transfer in will start its two year fix in January and then the next would be April, etc. which would make calculation and the idea of a 'fix' a bit of a misnomer. But I could be wrong so check that link I gave you above and check the T&Cs of whatever takes your fancy.

Good luck with it and I hope your jobs stay secure.

All the best,
Spigs

streethack

Well here it is with the my Christmas bonus plus my first direct savings maturing with a handsome interest of £124 I have reached my 2011 target of £5100 which will go into an ISA come April. I will open a new first direct regular savers. Heres the update for Jan

ISAs £10,419
General Savings £5168
Company Shares £2784

streethack

Well we are on to a new year of savings and meeting targets, Bit of a spanner in the works as my wife is going to be working two days a week to look after the little ones. But still I am 100% focused on providing a mortgage free life for are growing family.

From doing this ive realised that adjusted your spending. Knowing exactly what your spending your money can give you more money for fun stuff than mearly going into your over draft every month and not having a clue while your so skint.

Anyway heres the lastest up date

ISAs £10419
General Savings £5100 (awaiting to go into an ISA come April)
F/D savings £600
Company shares £3146

This thread has really kept me on the straight and narrow, wishing good luck to all my fellow savers.

streethack

Hello fellow mortgage free wannabes heres the lastest update. Have transfered my nationwide ISA to a 2 year fixed rate ISA which is 4.0% with Santander. This is great because it means im not losing money by saving rather than paying of my mortgage. Im also going to transfere £5100 into this come April.

Latest figures
ISA £10518
General savings £5100
F/D savings £900
Company Shares £3344

streethack

So finally open a Santander ISA account at 4% which feel good as its more than my mortgage interest rate.

Update

ISA £15618
General savings £0
F/D savings £900
Company Shares £3575

Good luck my fellow savers:)

streethack

Another month another update. Have been making the most of the money saving tips on here, Have had some great days out with the family with tescos clubcard rewards and work have some great schemes for family days out.

Online shopping is going well managed to keep the budget low which is good for a family of five

Update
ISAs: £15,618
General saving: £0
F/D savings: £1,200
Company Shares: £3,717

General savings not going to well but there is still hope on the horizon. As I get paid every four weeks, 13 times a year I treat one of my pay packets as a bonus so should be able to dump some of this in to my general savings.

Good luck all my fellow mortgage free wannabes.