Which Savings - newbie here

PhateB

Hi guys,

It's my first post here so be gentle, just after some friendly advice

Basically, in a months time I'll be getting a 20k inheritance setup by my family years ago, the original intent is for a house deposit.

However I would like to build on this and not have easy access so I don't blow it and spend it all on booze & loose women, you know...the finer things in life.

I plan on spending 3k on some monthly outgoings to be better off overall...always knew the fastest way to save money was to pay off debt, its just car insurance and a couple of finance payments that I have, I'll be £400 a month better off straight away.

Then the remaining can go somewhere until I'm ready to buy a house.

However, from doing some research online I've found a few things.

Anything without easy access I can put it 'away' in I can't add additional funds to, which is what I want to do.

Anything I can add to, I can transfer back to my current accounts without hassle, this is not what I want.

So, can anyone offer any help?

I'm going to be saving £700 (and then my girlfriend adding as well) a month, so I want to be able to transfer into it straight after payday.

I DON'T want to be able to easily access it to stop impulse buying and stupid decisions.

I'm not particularly fussed about interest, providing the above two requirements are met...no amount of interest is going to offer that sort of return that I'll be putting back into it.

Thanks in advance!
Jake

R_P_W

You could try a bit of self control? Put it not an account that you can add to and just don't spend it. You know what you want the money for - if you can't not spend it , we'll how much do u really want a house?!

PhateB

R_P_W wrote: »

You could try a bit of self control? Put it not an account that you can add to and just don't spend it. You know what you want the money for - if you can't not spend it , we'll how much do u really want a house?!

Wow...what a way to answer a question...without answering a question.

I'm perfectly capable of not spending, but I'd like the possibility of needing to give a few days notice to get the money if possible.

So unless you have an answer to the question...ssh

psychic_teabag

A postal account makes it a little harder to withdraw the money. I think you can probably still deposit electronically (and therefore instantly). In theory a notice account is also easy-in but harder-out - unfortunately, some allow instant access and "merely" penalise you with a loss-of-interest, which may not be sufficient deterrent.

Some regular savers allow no withdrawals for a year. (But again, some merely penalise early access.) Unfortunately, while they may be the best home for your monthy £700, they tend not to allow a large initial deposit.

You could of course split the money so that the lump sum goes in one account and the incrementals go elsewhere.

fiesta04

Another 1st time poster with attitude, welcome to the forum.:D

F4

PhateB

fiesta04 wrote: »

Another 1st time poster with attitude, welcome to the forum.:D

F4

Been browsing forums for many years now and have seen regulars with high-horse attitudes all too often. Talking to me in a patronising tone is not what my opening post warranted.

PhateB

psychic_teabag wrote: »

A postal account makes it a little harder to withdraw the money. I think you can probably still deposit electronically (and therefore instantly). In theory a notice account is also easy-in but harder-out - unfortunately, some allow instant access and "merely" penalise you with a loss-of-interest, which may not be sufficient deterrent.

Some regular savers allow no withdrawals for a year. (But again, some merely penalise early access.) Unfortunately, while they may be the best home for your monthy £700, they tend not to allow a large initial deposit.

You could of course split the money so that the lump sum goes in one account and the incrementals go elsewhere.

Thanks for the suggestions

R_P_W

PhateB wrote: »

Wow...what a way to answer a question...without answering a question.

I'm perfectly capable of not spending, but I'd like the possibility of needing to give a few days notice to get the money if possible.

So unless you have an answer to the question...ssh

No high horse tone. No judgement.

Everything I have said is just based on fact. How you read people's responses on here is up to you, says more about you I think than me.

Being able to exercise some self control is a life skill we all need.

Please don't sssh me. Definitely don't wink at me.

Reaper

It sounds like a notice account would be best for you. Easy to add to but you have to give notice (1 month, 3 months or whatever) to withdraw which should stop impulse spending.

Just be sure you plan ahead for when you do need the money and give enough notice. You can find a list of what is available here:
http://www.money.co.uk/savings-accounts/notice-savings.htm

sterlingstash

Good for you PhateB for knowing your potential weaknesses and wanting to structure your finances to reflect that. I agree with splitting up the lump sum from the ongoing contributions. How about putting the £700 into an ISA. Many of these, even the online ones, make it tricky to get quickly to the money (I know, I was scrabbling to get mine out to buy a Ducati - we might be quite similar!) - particularly if you open one with an institution you don;t bank with.

£700pm for the rest of this financial year and most of next will still be under the ISA limit. {EDIT actually, if you started this month, you could only put in £640pm into cash isa to hit the £5760 limit but still a good start) You will be able to make online deposits. I would suggest your girlfriend does the same but in her own name.

I find that I think twice about accessing ISA savings as accessing the money means loss of the tax free status.

Herbalus

This has got to be the most amicable disagreement between the old folks and the new, all winks and shushes, no unnecessary capital letters and 'GET THE F OUT OF MY LIFE IF YOU DON'T HELP ME EVEN THOUGH YOU POSTED USEFUL ADVICE THAT I REJECT BECAUSE IT DOESN'T SUIT ME' kind of nonsense.

You could have tried the Investec High 10 or High 5 - the average of the top 10 or 5 (funnily enough) savings accounts with a 3 month or 6 month notice period to withdraw. Info is here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#investec but you need a minimum of £25,000. Worth knowing for the future if you are planning on saving though.

All savings rates are shocking at the moment, so it just seems like trying to get the best from a bad lot.