Best way to save?

IntriguedUser

Hi all,

I've posted on here a few times, haven't saved anything at all. I'm now a bus driver, and will be earning between £1600-1800 per month. I'm 21 next month and I live at home with my mum.

I need to get it together, start saving for a house deposit. I need to take advantage of my situation, I'll easily be able to save £1000 PCM, but I have no idea how to go about this?

I have an ISA account, but the problem is, its linked with my current acount/Online Banking, so it takes 2 seconds to transfer money between accounts, which defeats the whole object. Is there any service or bank provider which allows you to only deposit money, and not take money out until X amount of time has passed?

What are your suggestions, thanks?

vouch0r

who do you bank with?
have a look at regular savers that can offer up to 6% and also another current account for up to 5% on your money. ISAs and savings accounts are really poor this year for savings..

IntriguedUser

vouch0r wrote: »

who do you bank with?
have a look at regular savers that can offer up to 6% and also another current account for up to 5% on your money. ISAs and savings accounts are really poor this year for savings..

Santander.

Thanks, but that still doesn't help with my problem, I'll still be able to spend the money, right? You might all say to be strict with yourself, but I can't, I need another method.

PeacefulWaters

Time to mature.

Or get a passbook account with a building society and ask Mum to keep hold of the book.

SeduLOUs

Options for now are to open a decent rate account and cut up the card and do not register for online banking - you will still be able to access the money but will have to phone up to arrange a transfer or go to a branch.

Another option would be to give the money to mum to look after it for you.

You will need to learn to be disciplined with your money eventually though. When you're about to withdraw your savings and blow them have a hard think about what those savings were for. Remind yourself that if you don't do it now, you'll be 30 before you know it without a penny of savings to your name and still no closer to buying a house.

You're in a really strong position to save a decent chunk of money. Take advantage of it while you can or you'll almost certainly end up regretting wasting the opportunity.

ViolaLass

IntriguedUser wrote: »

Santander.

Thanks, but that still doesn't help with my problem, I'll still be able to spend the money, right? You might all say to be strict with yourself, but I can't, I need another method.

regular savers usually require you not to touch the money for a year. I imagine you can get it out if you pay a penalty and/or give notice.

SeduLOUs

ViolaLass wrote: »

regular savers usually require you not to touch the money for a year. I imagine you can get it out if you pay a penalty and/or give notice.

With a lot of the regular savers if you make a withdrawal or miss a payment the account gets closed and the interest rate plummets very close to zero.

LplateSaver

I thought you were my OH until you mentioned the ISA. OH banks with Nationwide, that's where his pay goes in and spending out but his £1000 monthly savings go to TSBs for 5% interest and a Lloyds club account and monthly saver (4% interest).

I think he doesn't get tempted to spend on them because he logs on to Nationwide daily and so doesn't see the TSB/Lloyds money. He was pretty surprised/pleased when it first got to 2k because he had never saved so much and started saving more, now he puts away 1k a month. It gets addictive.

atush

First, make a budget, incl money for fun/going out etc. Leave this in your current acct.

On payday, remove from your account (to another act in a different back that isn't linked) the amount you intend to save every month. This can be with a current acct that gives interest.

from this, set up a direct debit into a regular saver. This can't be touched easily and you pay penalties to do so- should help keep your grimy paws off it. Many are 25o-300 worth.

If you dont intend to buy soon, put some of the 1K into a S&S isa. This will help grow, and you could take money out but hopefully the process is difficult enough for you to keep your hands of, plus watching it grow can be addictive and helps further. say 500 or so.

Any savings left over can be left int he separate current acct. Make sure that you dont keep the card for this acct in your wallet. To help keep it on hand for a true emergency, but unable to use, either give it to your parents to keep, or freeze it in a large container of water so it isn't easy to get to.

If there is a work pension you should join it, despite your wanting to buy a home. AS it comes with employers contributions ie free money.

Crossposted with Lplate but this is part of the same strategy as the acct isn't linked you dont see the money when you log in.

Thrugelmir

Nationwide operate a Save to Buy scheme. Both in an ISA and non ISA form. Interest isn't great. But the bonus and brownie points earnt are a major plus.

IntriguedUser

SeduLOUs wrote: »

Options for now are to open a decent rate account and cut up the card and do not register for online banking - you will still be able to access the money but will have to phone up to arrange a transfer or go to a branch.

Another option would be to give the money to mum to look after it for you.

You will need to learn to be disciplined with your money eventually though. When you're about to withdraw your savings and blow them have a hard think about what those savings were for. Remind yourself that if you don't do it now, you'll be 30 before you know it without a penny of savings to your name and still no closer to buying a house.

You're in a really strong position to save a decent chunk of money. Take advantage of it while you can or you'll almost certainly end up regretting wasting the opportunity.

I think this is the attitude I need to go in with.

I will be in control, and not give in to temptation. I have a current account, and an ISA, what I'll do is create another section of my account with a direct debit facility, transfer money to make sure my DBs are covered, deduct food/clothes/drink money and put the rest in the ISA, this might help me manage it better.

I think once I see £1000 I'll be motivated to keep going as another user has said.

thanks everyone!