Is this usual? Please help.

Spreading

Hi all.

I am asking this in the hope that someone can perhaps give me a solution to dealing with the money I have. I am about to start University and have earned roughly £2500 before starting.

What I'd like to do now is put that £2500 aside because I am going to be given a loan which I have worked out will more than cover my expenses.

However, I would like this go directly to my pension fund because I intend to be generating money through work to sustain myself after University. Whilst I am working, I will also be putting around 30 to 40% with the aforementioned savings of £2500.

I was looking at Sipps but I won't be able to manage investments while at University and I do intend this to be a long-term sort of saving (it'll roughly be about 30 to 50 years) so I was wondering what you would suggest I do with this initial £2500 and then with the subsequent money I earn.

Thank you in advance.

Spreading.

atush

Given you are starting university, and are not exactly sure you will find and keep these jobs, and given the interest on your loan may exceed what you can do with your 2.5K, I would consider putting it away into something less long term such as an ISA.

Normally, I am all about recommending pensions, But not perhaps in your case- until you finish your degree?

Spreading

atush wrote: »

Given you are starting university, and are not exactly sure you will find and keep these jobs, and given the interest on your loan may exceed what you can do with your 2.5K, I would consider putting it away into something less long term such as an ISA.

Normally, I am all about recommending pensions, But not perhaps in your case- until you finish your degree?

Do you think it would be more useful for me to have the money on hand in case I need it? Thank you for your response.

Linton

You could put keep say £500 in a savings account for emergencies and split the rest into 3 fixed rate accounts, 1 for 1 year, 1 for 2 years and the rest for 3 years.

In this way you will get the best interest rates, have access to some money on an annual basis to be redeposited if not required and keep most of it away the the immediate temptations of student life.

Spreading

Linton wrote: »

You could put keep say £500 in a savings account for emergencies and split the rest into 3 fixed rate accounts, 1 for 1 year, 1 for 2 years and the rest for 3 years.

In this way you will get the best interest rates, have access to some money on an annual basis to be redeposited if not required and keep most of it away the the immediate temptations of student life.

Thank you for the advice. I will take a look at this option. Are there any banks you would recommend straight off the bat?

Linton

Spreading wrote: »

Thank you for the advice. I will take a look at this option. Are there any banks you would recommend straight off the bat?

No, the best offers change rapidly. Often the very best are with obscure banks you havent heard of or sometimes the Post Office. The AA also have offered good rates. But you may prefer a standard high street bank.

Suggest you google "fixed rate deposits" and/or look at the standard comparison sites.

mgdavid

Spreading wrote: »

Do you think it would be more useful for me to have the money on hand in case I need it? Thank you for your response.

yes, definitely.
what happens if you graduate, get a good job offer, but need to travel so need a decent car for instance? or rent somewhere close to work which may require a lump sum in deposit and advance rent?
Or decide to take a gap year after uni and do some travelling? You don't mention if you're a mature student so I'm assuming you're young enough to have lots of changes of mind over the coming years, stay fluid...

Spreading

Linton wrote: »

No, the best offers change rapidly. Often the very best are with obscure banks you havent heard of or sometimes the Post Office. The AA also have offered good rates. But you may prefer a standard high street bank.

Suggest you google "fixed rate deposits" and/or look at the standard comparison sites.

I will take a look at that today and see what is the best place to do a fixed rate deposit. I hadn't thought of this method before so genuinely, thank you for that.

mgdavid wrote: »

yes, definitely.
what happens if you graduate, get a good job offer, but need to travel so need a decent car for instance? or rent somewhere close to work which may require a lump sum in deposit and advance rent?
Or decide to take a gap year after uni and do some travelling? You don't mention if you're a mature student so I'm assuming you're young enough to have lots of changes of mind over the coming years, stay fluid...

Hello and thanks for the response. Makes sense to do this just in case I do decide to change my plans. I am not a mature student, you are correct so there is every possibility I will be changing my plans come graduation in three years time. Thanks to everyone who has put in their responses so far.