Savings/ISA advice please

Phil81

Hi

I have read through the website and on the forum but am still a little unsure on what action to take.

Next month myself and my partner are going to move in with a parent for around 2 years so we can save for a deposit for a house, we have worked out our finances and we should be able to save £500 a month each and more on months when we dont have plans for days out,birthdays etc.

where would be the best place to put our money, would it work if she had a normal isa & a shares isa and then I set up the new help to buy isa this coming autumn as well as a shares isa or are we opening too many? I though it might be ok as cash and shares isa are different? but wanted to check before hand or see if anyone has better advice for us.


thanks in advance for the help

piker1957

You are right in that you can split your ISA allowance between S&S and cash. However given your reasons for saving and that you will be paying in monthly a S&S ISA with investment in a couple of decent Income funds should give a better return. You need a low cost platform - I believe Fidelity is probably marginally cheapest but please check for yourself. A monthly investment helps to smooth market price changes and if you pick a good income trust (Trustnet is ideal to see all funds in easy to manipulate performance tables) the income earned will be much higher than interest from cash ISA plus you get the full income for every unit held at date income is paid.

Archi_Bald

As you need your money in a couple of years time, you should not consider any investment of any sort as 2 years is way too short to ride out any possible market downturn. Instead just stick with cash savings.

Don't go anywhere near cash ISAs either as they pay worse interest than other accounts - with the exception of the HTB cash ISA may be. But this won't take all your cash.

Look at Regular Savers (First Direct, HSBC, M&S, Club Lloyds, may be KRBS) and high-interest paying current accounts (TSB, BOS, Nationwide, Santander, Tesco). Threads on all of these on the forum.

Phil81

Hi

thanks for the info, lost to consider, I am leaning to a savings account, then a S&S Isa in the future for long term

thanks again, really helpful

bigfreddiel

You can get 3% on up to £60k with Santander 123 account tax free - that's £3,600 in 2 years

Cheers fj

Archi_Bald

Phil81 wrote: »

I am leaning to a savings account, then a S&S Isa in the future for long term

Why a savings account?

Why an S&S ISA if you need your money in a couple of years' time?

Thrugelmir

If you are saving for a mortgage. Then look at lenders saving schemes such as Nationwides Save to Buy.

Phil81

Archi_Bald wrote: »

Why a savings account?

Why an S&S ISA if you need your money in a couple of years' time?

Two reason so far, the first is a couple of people have told me when using a S&S ISA its best to use it for at least 4+ years to get a good average of ups and down, also because its an election year, 1 person said this could get the markets more twitchy.

2. I have read its good to save a big chunk of money in a place you might consider getting a morgate as you build up a good realtionship as they see you as a "saver"

The above two points arnt my views just advice I have been told so am not saying these are facts

Thanks again everyone for the advice really appreciate the help while I decide