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Best way of splitting savings?
ffowles
Posts: 4 Newbie
From January, DH and I are looking at saving £500 a month. He's already applied for some shares as part of his company's ShareSave scheme and is expecting that to be about £75 a month. What's the best way of saving the rest? Neither of us has an ISA or anything at present - we're probably looking to spread the risk.
Long-term aim is to save up enough for a deposit to move up the property ladder - we don't really want to tie anything up past three years.
Thanks
Freya
Long-term aim is to save up enough for a deposit to move up the property ladder - we don't really want to tie anything up past three years.
Thanks
Freya
0
Comments
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A cash ISA each will be the best way to go - review the Top Cash ISAs link at the top of this thread. Up to £5340 each capacity up to 5 Apr 12 and a new, higher allowance from 6 Apr 12Old dog but always delighted to learn new tricks!0
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Long-term aim is to save up enough for a deposit to move up the property ladder - we don't really want to tie anything up past three years.
As you are starting with a monthly amount of money I would suggest a regular saver might be more beneficial than a standard savings or ISA account, especially if you bank with HSBC (8% RS).
You can both open a RS account (HSBC has a monthly max of £250).
Obviously once the 12 month RS account has come to an end move the cash in to the highest paying account you can find; use your ISA allowance if the gross rate beats the net from the best ordinary account.
If it is financially beneficial you may want to open another RS account.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
As you are looking to save and use the money in a few years time I you just need to work out the best savings rates.
As you are starting with a monthly amount of money I would suggest a regular saver might be more beneficial than a standard savings or ISA account, especially if you bank with HSBC (8% RS).
You can both open a RS account (HSBC has a monthly max of £250).
Obviously once the 12 month RS account has come to an end move the cash in to the highest paying account you can find; use your ISA allowance if the gross rate beats the net from the best ordinary account.
If it is financially beneficial you may want to open another RS account.
The HSBC regular saver only pays 8% PA for "Advance" customers. The £12.99 fee per month wipes out ANY of that interest (if you were to ignore the "benefits" you get with said packaged account)
The "non-Advance" regular saver = 4% AER.
First Direct (same banking group as HSBC) pay 8% on their regular saver to anybody holding a current account, though in theory an FD bank account is a "paid" account (although depositing £1500pm or holding any savings/credit product negates the monthly fee).
The FD also allows payments of £300pm max, where-as the HSBC account is £250pm max.I am an IFA, but nothing I say on this forum constitutes financial advice. Always draw your own conclusions and always do your own research.0
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