Some saving accounts advice/help please.

norbie

Hello,

I'm 20 and would like to start saving up some money from my monthly wages. I have a Nationwide Flexaccount as my current account and I have a HSBC student account which I only use for emergency overdraft lol

Since starting a new job I'm earning a lot more than I was a few months ago and I want to put some away as savings. I've been looking at the Nationwide regular savings account as it seemed a simple way to save by paying in upto £250 a month and getting a good interest rate and still being able to access my money.

Are there any better ways of saving my money? I was also looking at ISAs - a mini ISA I think? They seem to have better interest because there's no tax.

I suppose the key points are:
- I'd like to be able to access my money in case I need it.
- I will be putting around £250 away a month (possibly more, will see how it goes).
- I want the best rate possible obviously

Thankyou to anyone that can spare some time helping me!

debbie42

Cash ISAs are good, as you say, because you don't pay any tax on the interest. There's a sticky thread here on the best in the ISA forum. You can access the money in them easily (for most), but as the rules are that you only have 3K contribution p.a., once you've taken it out, you can't put it back in again.

I'm not sure what the rate is on the flexaccount? Halifax, A&L and Abbey pay decent rates on their current accounts, up to balance limits of around £2500. Other than that, you sound like you've got it sussed, and I don't wish to sound patronising, but wish I'd been as good with money when your age!

CLAPTON

nationwide have a good range of accounts:

the flexaccount provides a good online service, gives a debit card that is particlarly useful abroad as it doesn't make any overseas charges (most charge 2-3%) and pays modest interest on your current a/c if you pay in 1000 a month (4.25%).

also the linked esaver account provides a reasonable saving rate of 5.55% and allows instant transfers to/from the flexaccount (you can open one online if you like)

the regular saver at 6.5% is good although a little complicated but unlike many doesn't stop after a year.

Howvever Nationwide do not provide the best rates on any of their accounts so you really need to decide whether you like the convenience of having a range of good a/c in one place or seek out the best elsewhere.

So e.g. although N/W provide 6.5% regular savings on 200 to 250 per month. Yorkshire will give you 7% on up to 500 a month and there is no minimum.

again N/W's cash ISA pays 5.3% which can easily be beaten elsewhere

However as someone just starting out I would

a. start an ISA and pay in as and when you can up to the allowed 3000 per tax year.

b. open a linked Nationwide esaver a/c and use if for any 'short term ' money that you know you will need to withdraw

c.and use the regular saver for any longer term money once the ISA is full.

and then in due course have a look at other accounts and see whether you think it worth chasing the extra bits of interest.

Shambler

In your situation I would open up a mini cash isa and save into this until you reach the £3000 limit and also open up an A&L current account and regular saver account (12% AER) to squirrel away any other savings.

SkipClick

Possible to transfer one isa to another isa account doif so what do you need like a special form?.;)

CLAPTON

SkipClick wrote: »

Possible to transfer one isa to another isa account doif so what do you need like a special form?.;)

you need to ask the company receiving your ISA to arrange the transfer

norbie

That is great advice Clapton, thankyou.

It seems that ISAs are the number one choice then.

debbie42 wrote: »

Other than that, you sound like you've got it sussed, and I don't wish to sound patronising, but wish I'd been as good with money when your age!

lol thanks, it's probably because my parents have taught me well!