Saving?

saving1994

Hi,

I am 20 years old and on a fairy low income (roughly £1200pm) and my outgoings (bills etc) are about £300 a month leaving me with roughly £900 of "disposable income"

I DESPERATELY need/want to start saving as i am tired of crawling from payday to payday due to my stupid spending ! i am looking to put away about £400 a month

I was wondering if any of you have any advice on the best savings account to suit my (small) amount of savings each month?

Thanks:beer:

puk999

These days current accounts offer better rates than savings accounts. TSB is best offering 5% gross on balances up to £2000. You have have 2 of these accounts, so that's £4k taken care of. While you're filling these 2 accounts up, have a search on the forums here and you'll see other current accounts you can use once you have the £4K saved.

Do you have any timeframe to save for? Are you saving for a house deposit in 3 years time (for example)?

Jogle

If part of the problem is that you spend too much, the First Direct Regular Saver (if you can get a current account with them, look around the forum as to how to avoid the £10 a month fee) at 6% might be a good idea for £300 a month as it means that it will be locked away for the year, so you can't be tempted to spend the money.

Totton

£900 of disposable income from a start of £1,200 is a lot, the idea of saving £400 seems a very good idea and probably best to get started asap in case having 75% of your pay left after bills doesn't last too long :-)

I would opt for ensuring that any savings plans are automatically taken from your account the same day (or next day) as your pay goes in. That way you see a true picture of what you have left to spend.

jodles16

Hi!

I use the Santander 123 account which is quite good if you have over 3k in it, and get cashback on bills, but might not be relevant to you. I would have a look on Martins saving tab as he has up to date lists of banks and the %.

Another thing I do is remove all the money I don't want to spend into another account which I cut up the card for (I can access it online if I'm desperate and transfer). I then use the other account for my dad yo day spends!

Hope the advice on here is helpful and good luck!:)

colsten

jodles16 wrote: »

Hi!

I use the Santander 123 account which is quite good if you have over 3k in it, and get cashback on bills, but might not be relevant to you. I would have a look on Martins saving tab as he has up to date lists of banks and the %.

Does he? I don't think the main MSE site ever had a complete list of bank accounts and %.

JohnRo

Look into using the longest 0% purchasing credit cards (typically 15 months at present) for all essential spending where ever possible, just be absolutely certain you have the self discipline to put that money in an interest bearing account so the debt is fully covered and that you won't be tempted to dib in to it at all, then the little bit of interest earned on the cash reduces the expenditure accordingly.

It's a bit of a faff keeping track and obtaining new cards but you're at least compensated somewhat for the effort.

eskbanker

colsten wrote: »

jodles16 wrote: »

Hi!

I use the Santander 123 account which is quite good if you have over 3k in it, and get cashback on bills, but might not be relevant to you. I would have a look on Martins saving tab as he has up to date lists of banks and the %.

Does he? I don't think the main MSE site ever had a complete list of bank accounts and %.

Not a complete list by any means (omits Bank of Scotland for one) but this piece has a reasonable summary of the top interest-paying accounts:
http://www.moneysavingexpert.com/savings/savings-loophole