Any advice on my savings?

gettingthehangofthis

Hello MSE-ers.

I'd like some opinions/advice on my savings if possible please. I've listed them all below with type of saving, interest rates, amount and access date.

My savings plan is to save up £50,000 by the end of 2016 to use as a deposit for a house + related costs. (Where, when, and who with is unknown at the moment, so I'm just trying to save up as much as possible and this seems manageable).

I have had some shares before but cashed these in (with good returns) and possibly looking to invest more at some point although I don't want to have anything substantial tied up later than Dec 2016.

Thanks in advance for your help. (I don't mind if you're brutal!)

NS&I 2 year Fixed Interest Savings Certificates
1.25% gross fixed AER £3,720.26 Nov 2014
1.25% gross fixed AER £1,198.09 Jul 2015
1.25% gross fixed AER £1,169.92 Jun 2014

NS&I 3 year Index-linked Savings Certificates
0.15% gross AER £1,307.33 May 2016
0.15% gross AER £1,220.24 June 2016
0.50% gross AER £1,306.91 Sept 2014

NS&I 3 year Guaranteed Growth Bond
3.25% gross var AER £3,085.74 May/2015

Nationwide 2 year fixed rate IASs
2.35% gross fixed AER £3,791.00 Mar/2015
2.50% gross fixed AER £5,816.42 Apr/2015

Nationwide Web Isa
2.00% gross var AER £1,263.91 Instant

Triodos Web Isa
2.00% gross var AER £9,047.00 33 days notice

Triodos 2 year Fixed rate Ethical savings bond
2.00% gross fixed AER £4,600.00 Jun/2015

Total £37,526.82

gettingthehangofthis

I should add that I already have a pension (started about 1.5 years ago), and my risk preference is low to medium.

Eco_Miser

Take a look at the 3% interest paying current accounts from Nationwide (5%), Santander, Lloyds, TSB, BOS, as mentioned on many threads on this board.

gettingthehangofthis

Thanks Eco Miser, will do.

kidmugsy

[QUOTE=gettingthehangofthis;63261816

NS&I 2 year Fixed Interest Savings Certificates
1.25% gross fixed AER £3,720.26 Nov 2014
1.25% gross fixed AER £1,198.09 Jul 2015
1.25% gross fixed AER £1,169.92 Jun 2014
NS&I 3 year Index-linked Savings Certificates
0.15% gross AER £1,307.33 May 2016
0.15% gross AER £1,220.24 June 2016
Triodos 2 year Fixed rate Ethical savings bond
2.00% gross fixed AER £4,600.00 Jun/2015
NS&I 3 year Guaranteed Growth Bond
3.25% gross var AER £3,085.74 May/2015

***As those mature, probably put the money into high-interest current accounts, as already suggested.***

Nationwide Web Isa
2.00% gross var AER £1,263.91 Instant

Triodos Web Isa
2.00% gross var AER £9,047.00 33 days notice

*** Either do the same, or hold on to them for a while. ***


Nationwide 2 year fixed rate IASs
2.35% gross fixed AER £3,791.00 Mar/2015
2.50% gross fixed AER £5,816.42 Apr/2015

*** Decide at the time, but do NOT let Nationwide automatically put your money into new fixed term ISA bonds. ***


NS&I 3 year Index-linked Savings Certificates
0.50% gross AER £1,306.91 Sept 2014

*** Roll over and then cash in immediately after second anniversary ***
[/QUOTE]

If my reasoning isn't clear, just give a shout.

gettingthehangofthis

Thanks kidmugsy, very helpful. I didn't know that the fixed rate ISAs might automatically be put into fixed term ISA bonds.

I am wary of getting rid of any NS&I ones as none of them seem to be on sale anymore, only to existing customers who roll them over. The index linked ones seem to be too a good deal to ditch with low interest rates around. Maybe I am just being too loyal though.

Can you explain your reasoning if poss please?

Ta

SavingFish

gettingthehangofthis wrote: »

The index linked ones seem to be too a good deal to ditch with low interest rates around. Maybe I am just being too loyal though.

Nope, I'd agree - it would be barmy to ditch the index linked ones in the current climate, and you can't get them back if you do.

Not only are they index linked, but they're also tax free. They're guaranteed to beat inflation - no other savings account can touch that.

Edit: RPI has been increasing at roughly 3% p/a (although it went over 5% a couple of years ago). Add on the 0.15% and take into account basic rate tax which you'd be paying elsewhere and you'd be looking for about 4.3% to beat them with a high street account - that's not going to happen.

gettingthehangofthis

SavingFish wrote: »

Nope, I'd agree - it would be barmy to ditch the index linked ones in the current climate, and you can't get them back if you do.

I just wish we knew when other interest rates will start getting better, tried to look up recessions on wikipedia to guess when this one might improve but to no avail! :rotfl:

Anyone know of a good online savings account calculator? It's hard to know which sums to do to compare an index linked and a bond for example.

SavingFish

gettingthehangofthis wrote: »

I just wish we knew when other interest rates will start getting better, tried to look up recessions on wikipedia to guess when this one might improve but to no avail! :rotfl:

If you're looking up recessions have a look at the one in the 70s.

Inflation peaked at over 20% :eek:

Index linked ns&i are the safest of the safe, guaranteed to keep they're spending power even if the economy goes completely doolally, but that doesn't mean they can't be outperformed.

For long term growth (fingers crossed) I'm mostly invested in stocks and shares trackers - Vanguard LifeStrategy seems to be popular around here - but for the cash aspect I find index linked ns&i hard to beat.

Vortigern

I suspect that kidmugsy suggested cashing the NS&I index linked because you said you need "£50,000 by the end of 2016 to use as a deposit for a house"

If you can buy your house without cashing the linkers, you should hang on to them.

gettingthehangofthis

True true, thanks Vortigern. I really don't know when I will be buying in reality (3, 5, 7 years time??) so I thought 3 years time is far enough in the future to not lock things away for now. Then I can reassess at end of 2016. I'm just focusing on putting as much away as I can (whilst still having a life!) Also need to build up an emergency savings pot, though at the moment I can still use the instant access ones to live off in case that happens.