Think of the future

CashStrappedTeen89

Me and the GF have been talking and decided we want to start saving for the future.

We were thinking a joint account just for savings where we put what ever is left over for the month into, we were ideally going to put a fixed amount in every month but her job has come into question and we don't know what will happen yet im hoping to still put a fixed amount in £150+.

I have about 1.5-2k to dump straight in and she has about 4-5k if a lump sum is better use.

Thanks Andy :j

Hooloovoo

CashStrappedTeen89 wrote: »

We were thinking a joint account just for savings where we put what ever is left over for the month into,

Assuming you are both tax payers, you need to fill your ISAs first. That means no joint account.

And you might not what to think about it, but what happens if you split up? What if your girlfriend empties the account and does a runner. You're going to reply "I know she wouldn't do that" but trust me no matter how well we think we know someone they can always surprise us.

I wouldn't even consider making the commitment of a joint account with someone before at the very least making the commitment of making them my wife, and even then I would think twice.

Seriously - just open a cash ISA each. Tax efficient AND safer. Pool the money when you get married and buy a house, not before.

guitarman001

Good advice.

CashStrappedTeen89

Noted and good advice i agree, i did think an ISA would be advisable first.

I did think that way about money and joint accounts, but this girl i've known 6 years and we havent been going out all that long but if i cant trust her i cant trust anyone and to be honest whats the point of a relationship without trust.

Thanks again.

MoneySaverLog

Leaving aside the trust issue, it would make much more sense to save your money in a cash isa (as you'll get a better rate of return). The two of you can have one each, then when the time comes to use the money you can pool it all together then.

I'm assuming you're looking to save for a deposit on a place together here.

bigadaj

Keep separate accounts and see how you get on every six months, you'll then know if you are both disciplined enough to save, and if one isn't you are at least forewarned.

oldvicar

You might want your own private savings for the wedding rings when the time comes ... more special than buying them from the joint account.

However strong the trust, your relationship might be stronger if she always has her own 'running away money' - but you won't want her to run away with yours too.

psychic_teabag

Hooloovoo wrote: »

Assuming you are both tax payers, you need to fill your ISAs first. That means no joint account.

Actually, there are some regular-saver accounts with rates that, even after tax is deducted, beat ISAs.

A possible tactic is to save in a reg saver for a year, and when that matures, transfer the balance to an ISA and start over.

Because they tend to limit the monthly deposit, two separate accounts are probably still better than a joint account.

MoneySaverLog

psychic_teabag wrote: »

Actually, there are some regular-saver accounts with rates that, even after tax is deducted, beat ISAs.

A possible tactic is to save in a reg saver for a year, and when that matures, transfer the balance to an ISA and start over.

Because they tend to limit the monthly deposit, two separate accounts are probably still better than a joint account.

Well spotted that's my little trick :T

CashStrappedTeen89

psychic_teabag wrote: »

Actually, there are some regular-saver accounts with rates that, even after tax is deducted, beat ISAs.

A possible tactic is to save in a reg saver for a year, and when that matures, transfer the balance to an ISA and start over.

Because they tend to limit the monthly deposit, two separate accounts are probably still better than a joint account.

Seems a good option for me, due to my limited savings but i think the ISA would be better for the GF as she has a bit more bulk.

Off the top of anyones head any advisable?, I have current accounts for Lloyds and Halifax at the moment.

Thanks for the help.

psychic_teabag

Yes, she could put capital into an ISA and put new money into a reg saver.

It is possible to drip-feed from an ordinary account into a reg saver. Can figure on getting roughly the average of the two interest rates. Probably a bad idea to drip-feed out of an ISA, though. (maybe occasionally it would be the right thing to do.)