How to start saving?

samus82

Hi guys,

I'm a bit of a n00bie when it comes to saving, I've been a student for the last 4 years, so not used to having money .

Anyway, I am looking to start saving some money, mainly for the summer, but I have heard of savings accounts where you can have a good rate of interest but are also able to withdraw a couple of times a year.

My plan is to start saving from now on, but I would like the ability to withdraw a certain amount for a holiday later this year. I will however carry on saving.

Can anyone give me some advice on the best way to start saving? I will be putting away about £150 each month.

psychic_teabag

"regular saver" accounts tend to offer better rates of interest for monthly savings. There's a list of accounts at https://forums.moneysavingexpert.com/discussion/608697 - some are more flexible than others about payments in and withdrawals so you'll need to check carefully that the account meets your requirements.

Or you could just keep it simple and go for an instant-access account - perhaps an ISA if you are a taxpayer and haven't already used your annual allowance. You should be aiming for around 3% interest. (The best rates are for online accounts - harder to get that much from a branch-based account.)

Have you read all Martin's savings guides on this site ?

samus82

Thanks for the advice. No I haven't had a chance to read those, where on the website can I find them?

horsechestnut

You will find the details under the Banking and Savings header at the top of the page and then just follow through to find the Savings product that is best suited to your needs.

psychic_teabag

One account that seems to have escaped Martin's notice is the Monmouth BS flexible saver @4% (for the first year). It seems a sort of hybrid regular-saver/instant-access : they probably intended it to be a regular saver, but it allows you to put money in any time you want, up to £12k per year. (But it might be a good thing that he hasn't noticed it : once he does and puts it in his weekly email, it will be swamped with applications and withdrawn.)

xylophone

Don't forget to complete R85 if eligible.http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.pdf

atush

AS a new graduate, who is working and looking to save- join any pension scheme your employer may offer. And you need to build up permanent savings of 3-6 months spending (for emergencies and redundancy).

Use ISAs if you pay tax- instant access this year as you may make withdrawals, and then in April transfer the blance to a fixed rate one, and open a new easy access.

Hopefully you will look at budgeting and make sure you can save more than 150 per month ;-)