What's the best option for me?

Jani9

Hi everyone,

I'm sure this kind of question has been asked before but things change all the time.

I've got around £5000 saved in an ISA and have £1000 in premium bonds (Haven't won anything in the year and half it's been in there!!)

Going forward I want to save between £500 and £800 a month depending on what I get paid.

What should I do with it?

Any ISA or a savings account or.......?

Any thoughts would be much appreciated.

Thank you in advance.

jimjames

An ISA is a savings account - or investments depending which you choose.

Depends if you are prepared to take any risk or not. Also depends if the £5k was added to your ISA this year - if so then you can't add much more till April.

Jani9

Only added the £5000 to the ISA in July.

Probably wouldn't want to take any big risks on my money, just want to add to the pot and earn some interest.

xylophone

You could add another £760 to the ISA before April 5.

You might consider applying for an FD account so as to qualify for their 6% regular saver?

If you are switching Direct Debits don't forget to use the FD switching service.

See https://forums.moneysavingexpert.com/discussion/4767441

innovate

xylophone wrote: »

If you are switching Direct Debits don't forget to use the FD switching service.

That will close your old current account.
This may or may not be desirable.

xylophone

That will close your old current account.

No - FD will ask for a complete list of the DDs on your existing account but you specify which ones you want switched - your existing account is not closed - I know because I opened an FD account/ arranged DD switching through switching service etc.

innovate

xylophone wrote: »

No - FD will ask for a complete list of the DDs on your existing account but you specify which ones you want switched - your existing account is not closed - I know because I opened an FD account/ arranged DD switching through switching service etc.

Yes they will close your old current account. The new switcher "regime" has been in force since September 16. What they did in the past no longer matters.

xylophone

Yes they will close your old current account. The new switcher "regime" has been in force since September 16. What they did in the past no longer matters.

Thanks - I opened an account very recently and had not realised that there had been a change.

xylophone

I have just had a look at the most recent information on the FD site - it concentrates on switching to them but I suppose that one can simply open an account with them so as to be able to access the regular saver?

And presumably provided that an e-saver is also opened and a small balance maintained, there is no need to pay in £1000 a month to avoid the monthly fee?

In these circumstances the account might still suit the OP?

WoodM

Always max out your ISA every year - best place to start!!!

innovate

WoodM wrote: »

Always max out your ISA every year - best place to start!!!

Not these days, it isn't. Might be a lot better to save up for a cash ISA in a current or regular savings account.