What are the best options?

shayshay

Ok, not about to make some huge savings like the rest of you guys but need to do something as a nest egg for the future and the kids.

Was thinking about doing one of those endowment policies where by I put £10 a month away and then after 15 years it should hopefully be a bit more than what I put in. For the first 5 years it rises by £2. Now not sure if I am better of interest wise doing that or just opening a bank account for each of the kids/myself and doing the same. Or if ISA's etc are something I should look at or if they are for those with mega amount to put away?
Any advice would be most appreciated.

CLAPTON

frankly 10 per month is a very small amount of money and the costs of any endowment policy are likely to be high.

just put it in a cash ISA with a B Soc with a good interest rate. in terms of capital, 10 per month over 15 years works out at under 2,000.

shayshay

Indeed it sounds small on its own but that would be £10 turning to £20 after 5years x 4kids/me.Plus on a DMP hence not huge amounts but getting there. Not sure if the name endowment was correct, but you pay each month and at the end of 15 years you get the lump sum but it had projected interest of 4% and 6% as a guideline so didn't know if an ISA etc was best way forward.

dunstonh

You would be hard pushed to find an endowment nowadays apart form rather poor friendly society versions. £10 just isnt worth the effort.

£20pm into a unit trust or investment trust would be better value (ISA them if possible). Lower charges and better taxation treatment trump the endowment.

CLAPTON

if you are on a DMP then i'ld suggest you just save the money in a B Soc as a rainy day fund and dont tie up the funds for 15 years.

sillybean

i have no idea what a dpm is, my mum got one of those things from Royal Sun Alliance 10 years ago and she put 50 a month in (bit over £10 a month) and a few years ago got something like 12 grand back. Obviously £10 a month 10 years ago was a lot of money so thats a completly useless comment :-S


id go with ISA because it has high interst and no tax but is instantly accessible. If you reall really want to lock up your money id go for a gaurenteed equitty fund which will track ftse over 5 years but you wont lose out if the stock market crashes. Over 5 years your more than likely to win, although im not stock market expert.