ADVICE PLEASE!!! Young person trying to save but cant stop dipping into savings!!

laurenmac_2

Hi

I recently had a fixed rate isa (rbs) that expired, it was locked away for 3 years. I did not like the fixed rate isa because I was unable to add funds to it - however it was good in a way because the money was locked; I could not touch it and if I wanted to take money out of it I would be heavily penalised.

I want to save and add money to what I already have (around 4 grand) but I cannot seem to find the right account to suit what I actually want!!!

Basically I want to:
1) Add additional deposits to the savings whenever I like
2) Not be able to withdraw the money easily or without penalty.

I am currently with Nationwide and have 2 Savings accounts, but both are instant access. One has good interest (1.50%) but I am more interested in keeping the money locked so I cannot touch it.... but still be able to add funds!!

I have looked everywhere!! I cannot find anyone that can give me what I am looking for...

Please help, all advice is seriously appreciated. I am only 23 and do not know much about finance and savings etc.

Lokolo

http://forums.moneysavingexpert.com/showpost.php?p=4603369&postcount=1

The ISAs are in sections. There is a section for notice period ISAs

Al Rayan Bank (formerly Islamic Bank of Britain) [120 Days' Notice] ISA - 2.02%
Rate guarantee? No. Rate effective from: 17/01/2014.
Minimum deposit: £250. Operated via: Branch, Internet, Post or Telephone.
Notes: 120 days' notice of withdrawal required.

Or theres a Post Office with withdrawal restrictions

Post Office Premier Cash ISA - 1.50%
Rate guarantee? No. Rate effective from: 12/09/2014.
Minimum deposit: £100. Operated via: Post or Telephone.
Notes: Two penalty-free withdrawals permitted per year.

zolablue25

Lock your 4k away in a fixed ISA for this years allowance. Use a different ISA for next years allowance that lets you add to it throughout the year.

atush

Lock away your current funds in another 1-3 year product, and open a regular saver account.

With this method though you would need a small emergency pot as you would have zero access. Freeze that money in a block of ice. A couple of hundred should do lol

laurenmac_2

Hi Thanks for your help, I am concerned about banking my money with banks/building societys I have never heard of before - are they safe/secure etc?

I did look at Charter Savings bank 95 Day Notice Issue 1 - as I am new user it wont let me put link in for this...

But when I checked the T + C's it mentions you need to have a BFPO address or be employed as civil servant or working for government etc. ???? Can someone check on this at all and let me know if I am perhaps reading it wrong?

laurenmac_2

thanks - but thats not what I want to do . I just want to have one account for my big money that is locked/difficult to access, but that I can still add additional deposits to. I do have an instant access ISA for emergency funds. I like block of ice idea tho haha

Purplesky_2

Why don't you open an account in a different bank (one of the big ones) and not sign up for online access, so you actually have to go into branch to get out money?

Radiantsoul

Seem like it is a psychological issue in terms of dipping into savings, rather than a lack of suitable products.

What are you dipping into buy, why can't you resist?

d70cw6

Radiantsoul wrote: »

Seem like it is a psychological issue in terms of dipping into savings, rather than a lack of suitable products.

What are you dipping into buy, why can't you resist?

it's pogs, amirite?

savings_my_hobby

forget the fixed rate "money locked away" accounts - although they are the obvious choice, put your savings into the highest interest account(s) you can, work out how much interest you will earn anduse this as incentive, free money is a pretty good incentive to save

if that does not work imagine being old with bills to pay and having an aging body that cant earn you any money to pay these bills, wishing you would have saved more when you were young and able to earn money easily with being in constant pain.

jimjames

laurenmac wrote: »

thanks - but thats not what I want to do . I just want to have one account for my big money that is locked/difficult to access, but that I can still add additional deposits to. I do have an instant access ISA for emergency funds. I like block of ice idea tho haha

Depending when you need the money for, a S&S ISA could be an option.

You can access the money but it's not instant and ideally should be invested for at least 5 years.