Need advice please

deni123

Hi,I need some help please,
I have had my ppi put into the bank now and really need some advice on the best place to save it, I have £7500 and can top this up to £10000 with other savings. I don't need to use this money for anything so can lock it away if that gets me a better rate, I would also want to add more to the account every month if possible.

robatwork

The main question is - what debts do you have? Mortgage? Credit Card?

If you have a mortgage, what rate are you paying, can you overpay, and are there penalties for overpaying?

You can't get any sensible advice until the full picture is known.

And at that point we would need to know your attitude to risk. 0 risk = something like gilts or some bonds, Cash ISA etc..

let us know more

atush

Do you have other savings and investments? A pension? Do you use your annual ISA allowances?

When will the money be needed? Next month/year/decade/retirement?

Generally speaking the best place to put it would have been to have opened a cash ISA before the 6th, then another one now. You can lock the money away for more than 1 yr for a better rate. Can only open one for this year now though.

But given inflation tends to be higher than most rates. I would look at investing part of the money (unless it is your only money) as over longer periods investments should outperform cash.

If you have other savings, you could top up your pension with money over the Cash ISA limit.

deni123

No debts, No mortgage, (we rent and love where we live but could never get a mortgage big enough to buy a house here!) credit card is only for big payments like car insurance and is paid in full every time we use it. We have no pension either (we also have 2 businesses)
we are saving ideally to get a mortgage or buy to let, so the more we save the better.

Not sure on the risk side of things, don't really want to risk losing money but I am guessing higher risk equals higher returns?

This money has just gone in so could not put it in an isa last tax year or I would have done that.

deni123

Oh and can also put a minimum of £500 a month in,it will usually be more than this but definitely a minimum £500.

atush

Starting pension planning, alonside S&S ISAs could be the way to go for you.

robatwork

Well, higher risk = higher risk. And possibly higher returns.
As so many "tracker" funds in the last 20 years have outperformed so called professionally-managed funds, and they were "lower risk" it's hard to be sure.

The main decision is play safe for a few percent interest - cash ISA, Santander 123 account, 5 year govt bond. Or gamble a bit on an S&S ISA where you can get back much more than a few percent, or lose a large proportion of your investment.

However as you said you are running 2 businesses, I would keep a few £000 to hand in an account you can get at without penalty, just in case.

deni123

Thank you so much for you replies

We have a few £1000 in an isa which we can access at any time if we need it.
I think I will look into an s&s isa, need to get it sorted as soon as possible as it is just sitting in my current account at the mo!

Thank you again

bigadaj

Might be worth placing into a savings account to get say 2% immediately and ensure you don't rush the I vestment process.

Given no debts and an emergency fund, then many people would look at pensions, does your employer offer one and make any contribution. If so trying to contribute to the level at which your employer will match is normally a good idea.

If not then many might split the money between a s and s isa and a pension, little difference really apart from with isas you have paid tax on the way in, but get it tax free on the way out, whereas pensions are the opposite. Pensions are good for higher rate taxpayers as the government effectively contributes more otherwise many prefer isas as you maintain control over your money and can access at any point, rather than only after 55 with pensions.

deni123

Hi,
So I spoke to nationwide today regarding isa's and they are recommending a save to buy account, as ultimatly we want to buy a house.
had a quick look on here and seems to be positive comments about this account, and seems to have some positive outcomes regards to getting a mortgage at the end.
He did say that this account is fine for the self employed. Although I will double check this! Does anyone know anything about this account? Do you think this would be a good way to save for a deposit?

bigadaj

deni123 wrote: »

Hi,
So I spoke to nationwide today regarding isa's and they are recommending a save to buy account, as ultimatly we want to buy a house.
had a quick look on here and seems to be positive comments about this account, and seems to have some positive outcomes regards to getting a mortgage at the end.
He did say that this account is fine for the self employed. Although I will double check this! Does anyone know anything about this account? Do you think this would be a good way to save for a deposit?

Could be, if you want to access a deposit then its cash only really.

Would be best posting this comment on the mortgages board, there will be people with experience of it on there.