How to get the best returns for my savings?

sallycanwait

I am trying to save c. £1000 a month at the moment and have just been told that my parents are giving me £1000 each tax year to invest on top of this.

I currently have about £9000 already saved up.

£3000 is in an ISA for 2006 tax year.

Nearly £3000 is in a high interest monthly savings account (£250 pm up to a max of £3000 in a year).

The rest is just in my current account savings account which has an average interest rate but is taxable.

What I'd like to know is, once I've maxed out my ISA entitlement, where should I be putting the rest of my money?

I'm looking to get a joint account with my partner at the moment as well, so if anyone knows of any good savings accounts that require a current account to be opened, please let me know!

Cheers!

irnbru_2

sallycanwait wrote: »

I am trying to save c. £1000 a month at the moment

What are you saving for ..... ?

bristol_pilot

sallycanwait wrote: »

I'm looking to get a joint account with my partner at the moment

Cheers!

Careful - the bank may chase YOU for any overdraft run up by your partner. And the partner can take and spend any money you put in a joint account (which could include the £1000 coming from your parents). Best not to form a financial association with ANYONE unless married to them.

Where the rest of your money should go after your ISA is full depends what your top rate of tax is. Are you a higher-rate taxpayer? It's almost April, so you could just wait for next year's ISA allowance for another £3k of it.

sallycanwait

@irnbru - just saving generally for the future - kids, somewhere to live, etc. Would ideally like to leave London living behind in a couple of years and work fewer hours, so need something to fall back on.

@bristol_pilot - we are getting married in the summer and it was my partner who helped me clear £9000 of debts when we met, so I have absolutely no concerns about sharing my income.

I will obviously transfer another £3k into my ISA come April, but its what to do with the rest of my money I'm confused about - £2,250 currently in a high interest savings account (rate only valid for a year) and another 6,500 in a regular savings account. Another £2000 to come in the next month. So in the next few months I need to find a home for nearly £8k.

I'm still way under the higher tax band btw.

neetugopal

I have the similar saving each month and I put my savings into monthly regular saver accounts. Mine goes into following accounts


Lloyds TSB - 8% - Max £250
Halifax - 7% - Max £250
Abbey - 7% - Max £250

There is a regular monthly saver article on this site which I found very good.

torbrex

Have you looked at the Nationwide regular saver? It only pays 6.25% for a max of £250/month but there is no time limit and no ultimate maximum, they also promise to mirror any changes in the base rate.
Definetly one for the long term.

sallycanwait

Thanks for all your replies. So where should I keep the cash while I drip feed it into regular savers? That's the next bit to work out!

neetugopal

Both IceSave and ICICI HiSave acounts offer good interest rate. Having said that not all will agree with my suggestion as both don't have very good track record.

jinkssick

A&L have high saving account with a minimum of 5k so thats you quite covered with this years ISA.

Tax will be 20% on the A&L

http://www.alliance-leicester.co.uk/savings/index.asp?page=dsaver&ct=savingshome

Gambler

sallycanwait wrote: »

Thanks for all your replies. So where should I keep the cash while I drip feed it into regular savers? That's the next bit to work out!

I've read the article and like the sound of these but I too am wondering where to drip feed the cash from.

EagerLearner

I would keep the bulk of the cash in IceSave @5.7%, then bring down £750 a month into your current account to cover the 3 x standing orders for the regular savers?

Of course in April you can also lump £3k into another ISA, or your existing one if you choose to continue topping that one up.

HTH