Eyes Opened - need help please

Halude

Hello all,

Im in a situation at the moment, im currently 30 and am looking into getting a property with my girlfriend, and my knowledge of savings / accounts you can write on the back of a postage stamp,

house prices are not cheap at the moment and i'm looking for some savings and investment advise to help me get there faster,

my current situation is i currently have 1.5k in the Nottingham building society ISA that basically i forgot about for about 2 years due to having troubles in my life, and i believe the rate is 2.1%

I have now got a very good job and am saving £500 a month that i have put into an on-line savers account with hsbc, that gives me 0.75% if i do not touch the money,

i have been looking into the Cheshire ISA Cheshire BS, 3.5% AER

im thinking it would be in my best interest to move all my money which is around £3k to this Cheshire account to top out at the 5,4k for the year,

Im also in the process of sending a letter for reclaiming expences for washing my uniforms when i work in a bakery for the past 2 years which will give me some money back to invest,

any other tips would be very much welcome at this moment in time,

Halude

Newbie2saving

Have a look at the best savings rate, >3% easy access is achievable http://www.moneysavingexpert.com/savings/savings-accounts-best-interest?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar . Also your HSBC rate sounds dire, I used to stick with my bank out of loyalty (and laziness), but there are so many options open these days for better rates including some current accounts paying you to move to them (usually in the order of £100) http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#firstdirect . If you think you may need access to any money quickly, don't fix at a set rate, ensure easy access.

Good luck.

psychic_teabag

Halude wrote: »

my current situation is i currently have 1.5k in the Nottingham building society ISA that basically i forgot about for about 2 years due to having troubles in my life, and i believe the rate is 2.1%

2.1% would be a relatively good rate for a 2-year-old account. (Rates usually plummet dramatically after a year.) But can do better.

I have now got a very good job and am saving £500 a month that i have put into an on-line savers account with hsbc, that gives me 0.75% if i do not touch the money,

0.75% is a lousy rate. You should be aiming for around 3% in an instant-access account. Is your current account with hsbc ? You might qualify for their regular saver account - 5% or 6% or 8% or something.

i have been looking into the Cheshire ISA Cheshire BS, 3.5% AER

im thinking it would be in my best interest to move all my money which is around £3k to this Cheshire account to top out at the 5,4k for the year,

that sounds about the best rate, at the moment. I don't think that one allows transfers, so you should also transfer your existing ISA somewhere to get 3% or more.

Could also look at regular saver accounts : as a short-term tactic, 5% or more in a (taxable) regular saver is better than an ISA earning less than 4% tax-free.

If you come from Notthingham, I think they have a regular-saver ISA offering a good rate. But you'd need to find somewhere else for your other savings since you can't put a lump sum in there.

Halude

Thank you for your quick responces, im thinking of putting my money in the Coventry BS: 3.15% AER to take advantage of the 4.3% total AER, then in a years time move it to another account which is offering good values,

Like you say newbie, im in the same boat, ive been lazy as well regarding my money and its about time i start being more active with my money

the next step is trying to find a decent mortgage provider lol

Kind Regards
Halude.

innovate

Halude wrote: »

Thank you for your quick responces, im thinking of putting my money in the Coventry BS: 3.15% AER to take advantage of the 4.3% total AER

You misunderstand - - there is no such thing as "total AER". You are looking at their Online Saver which pays 3.15% AER*/gross p.a. (variable).

This rate includes a 1.15% AER first year bonus - - - i.e. you get 3.15% for any money that is in there for a full 12 months, proportionally less for money that is in there for less time. After 12 months, your rate plummets to 2%.

This misunderstanding probably explains why you are not looking at an ISA?

Desperate_Housewife_2-2

welcome to the forum and well done for taking the first step to sorting out your finances.

You could look at the first direct regular savings account at 8%. You open 2 accounts ( a savings one and a current account) put £1500 a month into the current account then take out £1200 so the remaining £300 goes into the savings account. Its for 1 year.

You could look at cash ISAs and use your annual allowance as once its gone its gone, are you saving for retirement too? It might be an idea to get an independant financial advisor who can look at your financial situation as a whole rather than you just focussing on one part of it. Try and get recommendations from friends, through your union or through this site (sorry cant remember the details).

Do a budget and look at income/outgoings and see where you can cut back on unneccessary spending that can be channelled into your savings pot.

Good luck and keep posting!

psychic_teabag

Desperate_Housewife wrote: »

You could look at the first direct regular savings account at 8%. You open 2 accounts ( a savings one and a current account) put £1500 a month into the current account

I think the savings account means you don't have to put in the £1500 per month. IIRC, to avoid the monthly fee on the current account you either put in £1500 per month or you have another account such as a savings account.