Full isa & saving 1k a month where do i go?

100saving

Hello,

i have filled my new isa but i am still saving 1k a month and currently i am putting the money in the barclays e-savings Reward account at 1.25% is this the best thing to do? all my accounts are with barclays.

any help would be good. and sorry if this has been put on here before.

phona

Sounds like you could use a regular saver: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

saintalan

100saving wrote: »

Hello,

i have filled my new isa but i am still saving 1k a month and currently i am putting the money in the barclays e-savings Reward account at 1.25% is this the best thing to do? all my accounts are with barclays.

any help would be good. and sorry if this has been put on here before.

Hi and welcome to the forum.

Most of the Regular Savers have a max / month e.g. First Direct is £300 so you would probably need 3 or 4 regular savers with different banks to use up £1k / month.

Therefor you might want to use a Santander 3% or Nationwide 5% current account to feed them.

It might be time to consider not letting Barclays have all your accounts!

Cheers

Alan

kidmugsy

Do you want to invest for the long term, or do you want savings you can get at quickly without capital loss?

MoneySaverLog

Do you have a pension pot?

100saving

Thanks for the comments,

I am 22 years old so I am looking at buying a house in about a years time so don't want to lock it away.

I am currently putting everything on credit cards and paying them off in full every month.

I should have about 20/25k saved in a years time so till that time i want my money to work as hard as it can interest wise so i am in the best place possible in December 2013 looking to buy around Feb/April 2014.

Not looking at pensions yet as my company don't pay in so its not worth it.

AlwaysLearnin

Outside of reg savers, lloyds vantage and/or santander 123 current account can get 3% gross on amounts you're looking at. Nationwide flex direct is currently offering 5% for a year, but only on max of £2500. All these have certain conditions to get these rates too (e.g. minimum funding etc). There's the odd esaver out there for a bit less...

Rates are unfortunately pretty dire at the moment!

100saving

is it bad to move or open lots of different accounts? could this damage my rating?

i want to get the most out of my money but not to the point i could get turned down for a mortgage.

100saving

i have just opened the 123 cashback credit card so is it worth moving the new cash isa from barclays 2.10% to the santander 3.00% one? only have £7.500 in that at the moment.

my accounts as of now:

barclays Instant Cash ISA 2.10% - £7500
barclays Monthly Savings 3.20% - £1250 (pay tax on interest 20%)
barclays current account 0% - 550
barclays e-savings Reward 1.25% - £5 (was used as overflow when i filled my isa last year took all the money in here and put it in the new 2013 isa)

AlwaysLearnin

Perhaps understand your reluctance. Looks like you're pretty tied to Barclays at the moment, but loyalty generally doesn't pay any more in the savings game (look at the best regular saver rates available elsewhere as an example).

You can get free trials from the bigger credit rating agencies to see your report (cancel before trial ends). You could therefore use one to have a look now to see how strong your rating is (if good, opening an account or two now shouldn't impact a mortgage application in a year, if not so good, you can think about how to build up in the interim), then use another nearer the time you're looking to buy to check again. Noddle is a way to see free on an ongoing basis, although linked to a lesser used agency.

If you filled last years cash ISA allowance and have a balance of £7500, then I presume you still have some of this years allowance left to use. Presume also that the Barclays monthly saver ties you to a monthly amount. If correct, you should have a bit of time before you need another account anyway (i.e. while you use this years ISA allowance up, and the monthly amount just continues). You can certainly do better than the 1.25% when you do.

Don't think the Santander 3% ISA will suit as it's a 2 year fix and you said you could need the money in a year. If you've been successful opening their credit card you could be okay opening their current account - you can get 3% between £3k and £20k. There is however a £2 p/m fee, but you might be able to cover that with direct debit cashback (although not owning a house yet may mean you aren't yet paying for many of the things that qualify...), or cashback from sites to open the account (not guaranteed to pay though).

Food for thought. I'm off to see if I can get some sleep now!

ColdIron

The Barclays Monthly Saver is easy access so presumably you could stop payments into it and feed another regular saver from it immediately