Where is the best place for shirt term savings

mrspogue3

My partner and I are saving to get married in November next year and I am saving about £2000 a month at the moment. Payments for the wedding will go out in October next year. Where is the best place to put this money?

In addition to this, my partner and I save £3000 a month for my partners tax, where is the best place to save this?

I have both tax and wedding savings in premium bonds at the moment as the tax money goes out in under a year so I dont think I will earn any annual income on it?

Advice very welcome!

Thank you so much xx:j

PS. Re title, I mean 'short'! Sticky fingers oops

Marine_life

mrspogue3 wrote: »

My partner and I are saving to get married in November next year and I am saving about £2000 a month at the moment. Payments for the wedding will go out in October next year. Where is the best place to put this money?

In addition to this, my partner and I save £3000 a month for my partners tax, where is the best place to save this?

I have both tax and wedding savings in premium bonds at the moment as the tax money goes out in under a year so I dont think I will earn any annual income on it?

Advice very welcome!

Thank you so much xx:j

Look I don't know much about money but I prefer gold to shirts.

ericonabike

You're a couple earning enough to save £5,000 a month yet you're asking a question as basic as this [and made such a boo-boo in the thread title]? Shurely shome mishtake!

mrspogue3

Sorry its a typo :-( I have big fingers and its late.

Short term savings!

hermanmunster_3

I think the OP is actually saving £2000 a month for the wedding - splendid! The £3000 I suspect is because the partner is self employed and you have to save the tax now or get a nasty shock later!

I haven't a clue about savings, am sure I don't get the best rate at all - until I paid the mortgage off I used an offset - great for the tax as it worked for me while I waited to give it to HMRC

mrspogue3

Yup thats right herman munster there is no way Im getting in debt for a wedding! The only way to have what we want is to have a 20 month engagement.

We dont get to keep the tax obviously, my partner has historically been awful over his tax (there seems to be no correlation between high earning and being good with money it seems) therefore I make him treat it like PAYE and extract his tax from every pay packet otherwise he would blow the lot. Its worked for us over the past 2 years.

Ive put his tax into premium bonds but Im unsure this is the best thing. I thought it would be as we dont have that money for a year and therefore to put it in an ISA paying annual interest would be a waste.

kidmugsy

"to put it in an ISA paying annual interest would be a waste": no. Just put it into an instant access ISA and, when you close the ISA, they'll pay you the interest due for the period that the capital was sitting there. Barclays do a good deal on their Golden ISA at the moment: why not open one each?

mrspogue3

Ohhh, I thought that if the money wasnt in there for 12 months then I wouldn't get anything! I will most definately have a look at the Barclays ISA tomorrow! My partner has some shares which also involve a cash isa but he hasn't put any money in this for 2 years. Can he still open one?

Lokolo_2

mrspogue3 wrote: »

Ohhh, I thought that if the money wasnt in there for 12 months then I wouldn't get anything! I will most definately have a look at the Barclays ISA tomorrow! My partner has some shares which also involve a cash isa but he hasn't put any money in this for 2 years. Can he still open one?

Yes, you can both contribute up to £5340 of new money each into a Cash ISA.

Interest will be paid up to the point of closure/withdrawal so you definitely will get something for opening and funding an ISA.

brian_723

kidmugsy wrote: »

"to put it in an ISA paying annual interest would be a waste": no. Just put it into an instant access ISA and, when you close the ISA, they'll pay you the interest due for the period that the capital was sitting there. Barclays do a good deal on their Golden ISA at the moment: why not open one each?

What you say is good advice, but i would put the money in a santander isa rather than Barclay's because if you close the account you do not get the 1% bonus paid after 12 months ,you get monthly interest but not the bonus until the end of the month term .santander are paying 3.30% and will move if the base rate goes up .

Baldur

brian_723 wrote: »

What you say is good advice, but i would put the money in a santander isa rather than Barclay's because if you close the account you do not get the 1% bonus paid after 12 months ,you get monthly interest but not the bonus until the end of the month term .santander are paying 3.30% and will move if the base rate goes up .

You appear to be confusing the Barclays Golden ISA 3 Ts & Cs with those of the Halifax ISA Direct Reward (which requires at least £1 to remain in the account for the full 12 months in order to receive the additional 0.2% for qualifying customers).

The Golden ISA 3 has no such restriction, from a quick browse of the Ts & Cs & interest rate info, which merely state:

Rates are variable. Interest is paid monthly on the first working day of the month. Rates include a fixed rate introductory bonus of 1.00% tax-free pa. The bonus is payable for 12 months from the date you open your account, after which time the rates will reduce accordingly.