Help me make the most of my money!

Sambuka

Hi all, just joined up, I've been a lurker for a while now and have taken much of your helpful and very valuable tips and advice on board. :beer:

I've just successfully applied for and opened a First Direct 1st Account and their Regular Saver along with it. I'm currently making full use of the great 8% interest rate by putting the maximum allowance of £300 into it each month and I've got £6k sitting in the 1st Account.

The question is, is there anything better out there that could be making my money work harder for me?

I can save around about an extra £500 a month so should I open another couple savings accounts (there is one from Halifax @ 6% that caught my eye) or should I look at some sort of ISA?
I'm prepared to lock away £500 a month for 5+ years, so I've been looking at the best 5 year fixed term ISA's but I'm just not sure whether these would be better to go with over a high interest regular savings account???
What would the wise people of MSE do?

Thank's for any advice, I'll get back to researching now, this website is awfully addictive!

:money:

DiggerUK

Sambuka......"I can save around about an extra £500 a month .......What would the wise people of MSE do?"....

I'm the wisest person on MSE, so for what it's worth, here's my opinion.
Gold. It doesn't cross many peoples radars, but should be looked in to. Most currencies are going to hell in a hand cart, and you should consider the traditional safe haven. D.Y.O.R.

NSI Index Linked Savings Certificates, get them whilst there going.

Premium Bonds for fun. Otherwise you will turn in to a savings anorak. One level below an estate agent, and who wants to end up that low.

Best of fortune.
..._

Ark_Welder

DiggerUK wrote: »

D.Y.O.R.

Especially the bit about its 70% fall in US Dollar terms from peak to trough over 20 years to 2001.

Sambuka

Thanks DiggerUK, I have looked at index-linked savings, there is one that offers RPI + 3% on top, I think it's KRBS... Anyway it looks like an outstanding deal, I'll see about opening it this week.

I know nothing about investing in stocks but after reading a few articles it has caught my attention, namely Apple and Google, if I'd have invested just £2k in Apple in 1998 right now it'd be worth nearer £200k! :j

I need to do a lot more research before I start throwing my money around but it's definitely food for thought!

Vortigern

Sambuka wrote: »

I've just successfully applied for and opened a First Direct 1st Account and their Regular Saver along with it. I'm currently making full use of the great 8% interest rate by putting the maximum allowance of £300 into it each month

If, your 1st Account is a joint account with your other half, you can each have a regular saver at 8%

...and I've got £6k sitting in the 1st Account.

That's too much to have in a current account paying no interest. Get yourself a savings account allowing faster payments both in and out (eg Tesco). Use this to park excess funds from your current account until you need them. Don't forget your 1st account usually has an interest free overdraft of up to £250.

I can save around about an extra £500 a month so should I open another couple savings accounts (there is one from Halifax @ 6% that caught my eye) or should I look at some sort of ISA?
I'm prepared to lock away £500 a month for 5+ years, so I've been looking at the best 5 year fixed term ISA's but I'm just not sure whether these would be better to go with over a high interest regular savings account

Always aim to have and fill a cash ISA as soon as possible. 5 years is a long time to fix while interest rates are low. Regular Savers are good if you are saving from regular income, less good for lump sums. Consider National Savings Index-Linked Certificates, which like ISAs are tax-free.

Ark_Welder

Sambuka wrote: »

Thanks DiggerUK, I have looked at index-linked savings, there is one that offers RPI + 3% on top, I think it's KRBS... Anyway it looks like an outstanding deal, I'll see about opening it this week.

KRBS ISA is RPI + 2.6% bonus as at 31 August 2016. The bonus works out at 0.51% AER.

Sambuka wrote: »

I know nothing about investing in stocks but after reading a few articles it has caught my attention, namely Apple and Google, if I'd have invested just £2k in Apple in 1998 right now it'd be worth nearer £200k!

Try to put stories like this to one side - history is littered with failed companies too, including technology. Look to use funds before you think about dabbling with individual shares.

Jake'sGran

Sambuka said...

"I've just successfully applied for and opened a First Direct 1st Account and their Regular Saver along with it. I'm currently making full use of the great 8% interest rate by putting the maximum allowance of £300 into it each month and I've got £6k sitting in the 1st Account. "

Which account is paying 8%?. Is it the regular saver? If it is I hope you have worked out the interest you will receive. Some people have been taken in by regular savers thinking they will receive the full amount of interest at the end of the term when in fact it is a much lower figure. It is the first month's payment that will be calculated at 8% as it is the only one that will be in the a/c for twelve months.