What to do with Money.

pipsqueak92

Hi, I'm new to this site. I'm a 20yr old University Student and unsure what to do with my money.
Unlike other students, I have worked very hard over the last few years, and not been silly with my money, and have gained substantial savings (between £14-17,000,haven't done a complete total recently).
I have now given up my job, as I am going into my final year and want to really concentrate on my degree. I receive student finance, and use this to pay rent and aid living, next year some of my savings will go on general living as well like some of my wages used to.
I currently have a 2012-13 ISA, and need to get one for this year, the majority of my savings is in an online saving account.
I am unsure what I want to do with my money. I want to save it, but where is best? I'm hoping my savings will aid me after uni when I may struggle to get a job, or be used for a deposit/rent. What is best to do with this money for a year?
I want to hopefully try and increase it still, although I know this will be very hard with no set job as I will only be doing small helping jobs for family over summer, and I have already made a budget for my last uni year.

Thanks in advance for any help!:j

pipsqueak92

Where is the best place to put in large savings for good interest returns?

atush

If the money will be needed in a year, you may not be able to get enough interest to beat inflation. Keep transferring your old ISA to new ones to get the best interest available.

Look to Regular saver accounts. you are limited in how much you can put in each month, but as a non taxpayer you won't have to pay tax on interest.

As for increasing your money, doesn't make a whole lot of sense to run up loans and then scrimp to save. I'd look to not increase any debt at this point.

Eco_Miser

Well done on what you've saved so far, and good luck with your finals. Since you need the money soon, you can't lock it up (much). See the Top Savings Accounts link at the top of the page, and search this board for Santander 123, Lloyds/BOS Vantage and Nationwide FlexDirect (all current accounts paying 3% or more), and First Direct Regular Saver. Presumably you won't be earning enough to pay tax, so there's no point getting an ISA unless it pays more than 3%, or you expect to still have that money when you start earning big.

FatherAbraham

pipsqueak92 wrote: »

I'm hoping my savings will aid me after uni when I may struggle to get a job, or be used for a deposit/rent.

People like you do not struggle to find a job. Employers love candidates who are clearly hard-working, sensible, realistic, understanding of the value of money, and flexible enough to change strategy to achieve some goal.

Investment will not make most of us wealthy enough to stop working some day. Working, earning and saving hard is the only route.

In your shoes, I would think twice about running the savings down to fund the last year, if you haven't taken full advantage of the student loan available to you. You will probably not have access to such good credit terms again until you become a home-owner, which may be some years away. With your savings, you could repay the loan off at any time you chose, but having the extra liquidity of your savings available for the first years of graduate working life sounds like a real advantage.

You would probably like Mr Money Mustache (http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/) -- you seem also to be good at building a "stache" of assets.

When assessing your wealth, remember that having an income-generating working life in front of you is worth well over a million pounds.

Warmest regards,
FA

pipsqueak92

Hi, Thanks so much for all the help so far.
I get full Student Finance help, loan and grants I only plan on using around a £1000, but hopefully a lot less, of my savings as just in case (especially in the first semester where if I just use my Student Finance I'll be living off £26 per week (food +fuel) if I want to pay all bills with it...)

I had an ISA last year with Lloyds at around 2%, but its now dropped to 1% and I want to look into moving it (there is around £4k in it). The rest of my savings is in an Online Saving Account with HSBC, where I get more interest if I don't touch it, but its still not much.

Last summer I worked full time, so was paying tax, which hopefully I'll get back soon as I haven't worked for nearly 2 months now.

atush

You have to file a tax return to get back overpaid tax.

Premium bonds are 'supposed' to return more than 1% so is an option. Moving your ISA to a better paying one is even better. As it a regular saver acct as mentioned.

What rate is your student loan payable at? When will you graduate?

sb93

Really inspirational thread, I have to say I am in a similar position (albeit it 1 year younger ) and think it's great to see someone else with such a focussed mindset.

Huge congratulations on what you've achieved so far! From personal experience, I have money saved in Lloyds Vantage accounts and have found that this has worked out well so far.

Keep up what you're doing - as I've read and like to think about it: your good savings attitude now means you're lending to your future self! Have a great day!

pipsqueak92

I graduate this time next year, unsure at what rate I will have to pay it back at.

SB93 - Everyone seems to be amazed at how much you can save as a student! I'm glad someone else it doing it I've grown up around parents struggling and don't want to end up that way myself, so saved hard.

Should Students get taxed? and where can I find a tax return?

FatherAbraham

pipsqueak92 wrote: »

Should Students get taxed?

Yes, of course they should be liable for taxation, just like everyone else. If they were tax-exempt, then everyone would be registering as a part-time student, to avoid taxation.

pipsqueak92 wrote: »

where can I find a tax return?

You don't need a tax return. You just need to write to your tax office explaining that you thin you've had too much tax withheld on your savings, and giving relevant details.

Warmest regards,
FA

ch3101

This is great!

I'm 2 years younger, got 3 more years of uni to go and hold the same views. I earn about 7.5k a year from a part time job and save loads, also had some inheritance.

What I've done is :

7.5k with StJames Place, they manage my dad's money and investments so just invested some there so I don't touch it. That is a deposit for my first house/flat. It's in "safe" investments so will hopefully make ~5% a year. That's what it made this year.

Then I have 1.5k in a Tesco Isa which was 2.3%, a good rate a the time.

Also have another Tesco isa with 2.8k in it, again at 2.3%.

To be honest, I would recommend that you use an ISA or something like the Santander 123 account, pays 3% up to 20k.
You have to pay a fee and a few bills, but that should be fine considering you're living yourself.

Not sur what to do about tax, there seems to be some myth that students are tax exempt, I'm sure we're not. Having said that I've never earner above the tax threshold so don't know how to claim tax back etc.

Good luck with the rest of uni and employment !