Which style of saving is best for me?

alidi

Im 18 and dont understand any fo the bank jargon, ie interest rates Aer rate etc and so have no idea which savings account would be best for me. Im looking to save some of my wages (approx 150-200) each month for a year. I already have a bank account with Natwest, any help would be much appreciated thanks

typistretired

You need a regular saver but Natwest don't have one have your looked at first direct who offer 8%?? You do only have to open one of their savings accounts to qualify for free banking.

UsernameAlreadyExists

alidi wrote: »

Im 18 and dont understand any [STRIKE]fo [/STRIKE]of the bank jargon

Google it then! It'll take you as much time as writing your post :P

opinions4u

alidi wrote: »

Im 18 and dont understand any fo the bank jargon, ie interest rates Aer rate etc and so have no idea which savings account would be best for me.

Higher rate = more interest. It's not hard to grasp.

Have a read of this.

As a rule of thumb, more interest means more restrictions. Perhaps no withdrawals for a fixed period. Or a requirement to save regularly. Or both.

Typically I'd suggest at least two accounts. One for day to day big bills (e.g. holiday, car insurance renewal) and another to save up for something special such as car or house.

If you pay tax a cash ISA may be beneficial as no tax is deducted from the interest. But read up about the limits on deposits each tax year.

Im looking to save some of my wages (approx 150-200) each month for a year. I already have a bank account with Natwest, any help would be much appreciated thanks

1. Be prepared to hold your savings elsewhere.

2. Consider your pension arrangements now. A few per cent of your salary won't be missed and may be matched by your employer, as well as reducing your tax bill.

Robin_TBW

ISA. Done.

cloud_dog

Robin_TBW wrote: »

ISA. Done.

A tad naive.

You need to check interest rates as you might, depending on circumstances be able to get a 'normal' account paying more than a gross ISA account.

From the post we can deduce that the OP doesn't have savings and therefore will be building a pot over the coming year.

Therefore the most appropriate suggestion is likely to be a regular saver.

Come next year the OP should be looking for two accounts; the best for a lump sum and the best regular saver (again).

Robin_TBW

Yeah but they're done no research themselves so I thought I'd pic kthe mot basic option and complete lack of explanation as they've evidently made no effort.

Rich1976

cloud_dog wrote: »

A tad naive.

You need to check interest rates as you might, depending on circumstances be able to get a 'normal' account paying more than a gross ISA account.

From the post we can deduce that the OP doesn't have savings and therefore will be building a pot over the coming year.

Therefore the most appropriate suggestion is likely to be a regular saver.

Come next year the OP should be looking for two accounts; the best for a lump sum and the best regular saver (again).

But if the the other person has no other savings why would a reguar saver be preferable over an ISA as you can't withdraw from a R/S.

Personally I would build up an amount in a cash ISA to draw on in case of emergency and then start a R/S.

atush

in general, I am all for the most interest, and regular savers.

But if this is the only savings pot, i'd put half in a reg saver (to be put in next year's isa once finished) and half into an instant access cash ISA for emergency spending. As they need to have instant access to at least some savings.

OP, think about the FD regualr saver mentionned, and look at the Cash ISA thread up above to find a good one.

cepheus

typistretired wrote: »

You need a regular saver but Natwest don't have one have your looked at first direct who offer 8%?? You do only have to open one of their savings accounts to qualify for free banking.

Or try this trick as a variation on the same theme, to get £125 extra.

innovate

Be quick, though. Come Feb 1, it will all be over.