What is the best saving option?

lblizard

I need to start saving - i have a mini cash ISA that I pay into each month but what an additional savings option -

If I want a savings plan that i don't need to access for x time is a pension the best option?

Or if I need something that I access say every few months say as high interest savings plan that may dip into to fund holiday's etc is an Easy Access Savings accont better?

Help i have no idea but need to start saving?

Can anyone recommend any account?

thanks

Lazy_Runner

hI

I think you need to answer some questions first:

What are you saving for and over what time period.

If it is rainy day savings, then I would suggest an internet based instant access account.

If you have sufficient rainy day savings, then I would start looking at ISA's, both cash and stocks and shares (S+S isa).
The s + s isa is dependant on your risk profile and is designed for savings that are going to be kept for at least 5 years. If the money is needed in less than 5 years, you will need to go for a lower risk product such as savings accounts or bonds from either banks or National savings (for example).

Trying to answer your questions:

lblizard wrote: »

If I want a savings plan that i don't need to access for x time is a pension the best option?

Not necessarily. You could look at investing in the stock market but using a stocks and shares isa. There any number of threads and a whole forum on this topic.

lblizard wrote: »

Or if I need something that I access say every few months say as high interest savings plan that may dip into to fund holiday's etc is an Easy Access Savings accont better?

Yes probably.

trinidadone

first and foremost, top up your isa first, then go to a regular saver option

tom188

if you are looking to save long term (5+ years) and already have enough funds for a rainy day anything in cash be it cash isas, regular savers and the like could well be unsuitable. Some sort of investment based plan is likely to create much better returns at a level that would suit your risk profile.

If you are still young saving money in a cash account for your retirement is not going to produce anything like the returns you would need comfortably to support you in your old age (unless you save an awful lot and doing so would be wasteful).

It is worth noting that for many people the seemingly mandatory "3k in a cash isa" that is usually suggested on this site is not often the best option, as long term the 7k maxi isa is likely to provide far greater tax benefits.

torbrex

You could go for an internet based account such as Icesave or ICICI, these will give you a good rate of interest without any restrictions on deposit or withdrawal but you will need to link to a current acc.

Another option is for a regular saver of some kind, Nationwide, LTSB, Yorkshire BS etc. These offer better interest but have various restrictions for withdrawals or tiered returns based on how much you deposit.

I have a combination of both types of account, Icesave in case I need to access for an emergency and Nationwide reg saver and LTSB reg saver for more long term goals. I like the Nationwide one because although there is a limit of £250 max monthly deposit there is no max time or total deposit to worry about as with some other reg savers and it is also instant access at a cash machine if required, it is also index linked.

missile

If you do not make investment every month and / or make a withdrawal, Nationwide reg saver interest rate is rubbish (IMHO).

torbrex

missile wrote: »

If you do not make investment every month and / or make a withdrawal, Nationwide reg saver interest rate is rubbish (IMHO).

The thing is I DO make the max deposit every month and unlike som reg savers you still get some interest if you make a withdrawal and that is better than nothing anytime.
This account is not used for regular withdrawals as the name suggests it is a regular SAVER. and for that I am getting 6.5% on my whole balance.

lblizard

thanks for the advice everyone.

I think in all honesty i will top up the ISA first - that will be savings i don't touch!!

Then get myself an easy access saver account - cos i think i may need to dip into that from time to time for holidays.

then if possible i'll get myself a regular saver that i won't touch.

Fingers crossed i can actually start saving!!!!