Best Saving Rate for a 17 year old??

Omid

Ok i currently have a HSBC ISA opened it last year, it has 2000 pounds in it. What is the best rate for a savings account these days? Ive seen some offers, i think i only get the standard isa rate as i didnt bother moving any money at the end of this year.

Also if i move it to another bank will it affect my 3000 per year input?

CLAPTON

good that your are thinking about the best rates etc.

i would suggest that you hold off for about 2weeks or so because some banks / B Socs have increased their rates in response to the recent bank rate rise and some have not yet done so. by mid june every one will probably have done so.

read martins articles on saving rates, look at the financial / money section of the newspapers and see whats recommended.
when you see what seems a good rate, use the web and read up the full details.. unfortunately the devil is often in the detail and sometimes the small print is pretty difficult to read.
but i would think you should look for a. high EAR and consistantly so, b. instant access in case you need the money, c. online access for convenience.
ISAs are automatically free of tax, but if you open other a/cs be sure to complete a R85 so you are paid gross with no tax deducted (i'm assuming you have no significant income.)

you can invest 3000 per tax year in a cash ISA... and if you wish you can TRANSFER your existing ISA. Its important to TRANSFER it rather than cash it and reinvest as you will lose the tax free feature. What you have to do is ask you new ISA manager to transfer the old one for you .. normally a simple form needs to be filled in.

The HSBC ISA pays about 5% which is rubbish and is beaten by lots of ISAs

teamgb

Alliance & Leicester have a new current account called PREMIER 21 exclusively for 16 to 21 year olds. 10% interest on balances up to £1000 plus if an existing account holder recommends them they will pay £30 into the account.

They will have to pay in £250 each month.

Omid

that sounds good, i just have 2800 pounds as well as the 2000 from last year now, can leave the 2000 in hsbc and open something else where? any other possibilites?

Omid

ok, team gb are you an existing account holder?

CLAPTON

i would suggest you open a new ISA with your 2800 and then transfer your HSBC ISA to your new provider. you will need to check that your new provider allows 'transfers in'.

teamgb

Hi Omid, Yes I have a A&L account. In addition to the £30 A&L will pay you £10 if you register for mobile phone banking.

Omid

please pm me your details so i can get us both the referral money thanks again