first time saver

richard79_2

Hello

I am a first time saver with £1500 to start off with. i will build £200 on this each month. What do you reccomend would be the best way to start saving.

Richard

YorkshireBoy

richard79 wrote:

Hello

I am a first time saver with £1500 to start off with. i will build £200 on this each month. What do you reccomend would be the best way to start saving.

Richard

The best advice I could give would be to read through Martin's "savings fountain" article on the link below...

https://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103213261,45760,

This can also be accessed through the savings link to the left of the page you are viewing here.

My second tip would be to read through the many posts on this (savings and ISA's) board. Many of your questions will have been covered before.

Post back with any specific questions you may then have.

Happy reading (and welcome to MSE)

HTH
YB

Katgoddess

Start off with an ISA. If you hurry you can still use up your 3000 pound limit for this tax year.

Read the articles mentioned above for the best ones.

grumbler

richard79 wrote:

What do you reccomend would be the best way to start saving.

Besides cash ISAs consider regular saving accounts: Halifax 7% and HSBC 8%. The latter one gives 6.4% after tax, but demands having a current account with HSBC with a salary coming in though.

richard79_2

Thanks for the advice. i have opened an min cash isa with first direct. it was on martins site as the best current cash isa. i will also get it before the tax year ends.

Thanks again

Richard

ED

richard79 - as you anticipate having £200 to save each month, + a lump sum of £1,500, maybe the monthly regular savings a/c offered by Derbyshire Bdg Soc may suit you. An advantage of this is it allows between £10 and £1,000 to be saved each month (you can vary the amount month-by-month). Interest is currently 5.85% gross.

Potentially, in the 1st month you could deposit £1,000, in month 2 deposit £500 (or £700), & deposit £200 monthly from month 3. If ever you have little to spare, just deposit £10 or more per month.

The higher interest rates offered by HSBC (8%) and Halifax (7%) are attractive, but on the anniversary the capital + interest is booted out into a lower paying a/c.

Derbyshire's monthly a/c allows the deposit to continue earning the prevailing rate, potentially for many years. One withdrawal is allowed per year, as long as at least £10 remains in the a/c. Then to obey the rules, until the anniversary (or beyond, if the customer desires) just deposit at least £10 per month.

Hope this helps.