Saving newbie

therobbie

Hey,

I'm looking to open a saving's account, or something similar (if there are other things), and I have absolutely no idea about saving accounts, banks or interest rates, so I'm hoping someone can give me some good advice .

I earn at least £1000 a month (sometimes going up to £1300, depending on the shifts I get that month) and I'm willing to put away upto £400 a month.

I currently bank with Lloyds TSB.

Help?

MarkFromCornwall

therobbie wrote: »

Hey,

I'm looking to open a saving's account, or something similar (if there are other things), and I have absolutely no idea about saving accounts, banks or interest rates, so I'm hoping someone can give me some good advice .

I earn at least £1000 a month (sometimes going up to £1300, depending on the shifts I get that month) and I'm willing to put away upto £400 a month.

I currently bank with Lloyds TSB.

Help?

First, if you haven't already done so, consider upgrading your Lloyds current account to 'Vantage' (your branch can arrange this). Then, provided you keep paying in at least £1000 per month and keep your balance between £3000 and £5000 you will be earning 3% interest and it is instant access.

Secondly, consider taking out a regular saver account. These pay good interest rates. You pay in a certain amount each month for a year. See http://www.moneysavingexpert.com/savings/best-regular-savings-accounts for more information. I'd suggest West Bromwich Regular Saver because it pays 4.1% but only allows you to pay in up to £250 per month or Principality Building Society Regular Saver which pays 4% and allows you to pay in up to £500 per month.

If you have additional funds, consider a savings account such as the Coventry Poppy Online Saver which pays 3.1%. You can get a better rate of interest with a notice account but you don't have instant access to your money, you have to give some notice before you withdraw. See http://www.moneysavingexpert.com/savings/savings-accounts-best-interest for more advice on savings accounts.

Also, consider opening an ISA account. The interest rates may not be so good but you won't pay any income tax on the interest received.

Whatever you do, stick to accounts which are protected by the Financial Services Compensation Scheme if the bank fails, and always read the small print before opening an account.

I hope this gives you some ideas.

DrSyn

1.The maximum the scheme Mark mentions is a guarantee up
£ 85,000.

2. In addition to this site you might also like to take a look at the "best savings tables" on the following sites:

www.moneyfacts.co.uk
www.thisismoney.co.uk

3. For general info on money & savings, look on this site and also
www.candidmoney.com

psychic_teabag

I assume you know about paying off debts first : http://www.moneysavingexpert.com/savings/pay-off-debts

MarkFromMullion wrote: »

If you have additional funds, consider a savings account such as the Coventry Poppy Online Saver which pays 3.1%. You can get a better rate of interest with a notice account but you don't have instant access to your money, you have to give some notice before you withdraw. See http://www.moneysavingexpert.com/savings/savings-accounts-best-interest for more advice on savings accounts.

Also, consider opening an ISA account. The interest rates may not be so good but you won't pay any income tax on the interest received.

At the moment I think there are instant-access ISA's paying better rates than (the pre-tax rates on) non-ISA accounts.

Lloyds have a (non-iSA) instant-access savings account offering 3% that they don't seem to be advertising - check other threads on here for "incentive saver" for more details. (Or phone Lloyds.) It's not the best rate for instant access, but it's close, and since you're already with Lloyds you might find that convenient.

therobbie

Thanks a lot guys, really helpful!

I'll get researching the things mentioned. I'll let you know what I decide to go with.

Thanks again.

firionicable

Savings account is all that. It is a bank account where you can put your money into it and let it rest. Same if you have a savings box or a piggy bank in your house, however, banks will guarantee that your money will be kept safe and secured.

kidmugsy

ns&i Index-Linked Savings Certificates.