Saving vs Student Loan - a question

sly_dog_jonah

Lavendyr wrote: »

That's really useful to know, I hadn't realised that. I've had a RS with A&L since November last year which I have only been able to contribute a fixed amount to (which was specified at the start of the 12-month term). Obviously A&L was higher interest but the flexibility is much more valuable to me given my situation.

Yep that's the beauty of the YBS regular saver. When I opened mine, I set up the SO to do £250 on the first of the month. When I got near to the end of the month and worked out I could dip the rest (up to max £500) in too, i just edited the date of the next SO to be a couple of working days from then (but before the end of the month). After it had left my current account, I edited the SO again to fire on the 1st of the month. After a few months of this and when my A&L regular saver ended, I realised I could do the full £500 on the 1st, which saved a bit of hassle.

Lavendyr wrote: »

I've seen a few people have had trouble with ICICI on these boards, so I will certainly be avoiding them! I have heard good things about Icesave too, though I see that the Sainsburys rate is slightly better currently. Is it possible to set up a standing order from such a savings account directly into a regular saver, do you happen to know?

Yep as discussed on the regular saver thread linked above in my first post, the Sainsbury's savings account allows BACS transfers to other accounts (other than your current account). Bonus!

Lavendyr wrote: »

So, plan so far: Once my car MOT has been & gone (last year cost £650 so nervously awaiting this year's!) and my current RS matures in October, I will top-up my ISA to the limit, then open an instant-access savings account and drop the remainder into it. Then open a new RS, probably the YBS one as it sounds perfect for my needs, with a low monthly standing order. Top this up with transfers as much as possible until April 08 when I will carry on with the RS standing order, but put the rest into ISA contributions rather than topping up the RS. Any surplus goes into the instant-access saver. How's that sound?

You've got it nailed on the head. Fingers crossed for a cheap MOT and a happy saving! :T