Most effective way of saving?

ValiantSaint

Hello everyone.

After a long and arduous road, I am now debt-free (well, minus the car and mortgage!) and I have a little nest egg of a few thousand squirrelled away in a Santander account that is paying very little interest.

I was just wondering if there's a smarter way of adding interest to my savings? Is there a low-risk way of "turning over" my savings?

Many thanks in advance

kidmugsy

ValiantSaint wrote: »

I have a little nest egg of a few thousand squirrelled away in a Santander account that is paying very little interest.

I was just wondering if there's a smarter way of adding interest to my savings? Is there a low-risk way of "turning over" my savings?

Consider opening a Santander 123 current account and using it to pay your bills by direct debit. It gives you cash back on the bills and pays interest too.

ValiantSaint

Thanks. Are there any decent ISA, or such savings schemes that are worth using?

ceredigion

ValiantSaint wrote: »

Thanks. Are there any decent ISA, or such savings schemes that are worth using?

No..........

ceredigion

Try this calculator
http://www.bankaccountsavings.co.uk/

masonic

ValiantSaint wrote: »

Thanks. Are there any decent ISA, or such savings schemes that are worth using?

There are 6% regular savers that are worth using. HSBC is also running a 'save together' scheme where you can pay £25 per month into their loyalty ISA and have it topped up by £10 per month. Both options require you to open and fund a current account in order to access.

Other than those, the high interest current accounts are your best bet.

ValiantSaint

Thanks again everyone. I already have an "Everyday Current Account" with Santander that I use for my normal direct debits etc. Is it worth upgrading to the 123 Current Account?

I could move my savings into there to get the higher rate of interest and I do have the DDs coming out, as well. My wages are paid into that current account, Also. I'm a bit weary of walking around with a bank card, with all my cash in that account, though!

On another note, would I be better off investing my money, rather than saving it?

EDIT: Would swapping over to the other account cause problems with my direct debits and what have you?

MDMD

ValiantSaint wrote: »

Also. I'm a bit weary of walking around with a bank card, with all my cash in that account, though

This is a fair worry, although there are limits as to what they can do with a card if they don't know the PIN. If you are worried have a second or third account ( I have my salary going into first direct, pay my bills from Santander and carry a Halifax reward card)

ValiantSaint wrote: »

On another note, would I be better off investing my money, rather than saving it?

Depends on when you need the money again. Investments are longer term as carry more risk

ValiantSaint wrote: »

EDIT: Would swapping over to the other account cause problems with my direct debits and what have you?

They should be able to upgrade the account so you keep the same details
.

atush

Once you have no debt and an emergency fund of 3 months outgoings, you could consider soem sort of investment,

Pensions and S&S isas would be a start. But this is for money that would not be touched for 10 yrs (S&S isa) or more or for retirement (age 55+)

ValiantSaint

I do indeed have an emergency fund of three months outgoings (and various insurance polices!)

Sadly, without taking a bit of a risk, I fear I'll never be debt-free! I have been reading about stocks etc, after a very learned friend suggested that I should look into this area. Would it be wise to let someone deal in shares for me?

I have also seen a lot of here about the S&S isas - how much would I need to put into one, and where's the place to start? (I have about 4k, that I would be happy to leave be......)

Many thanks in advance

colsten

ValiantSaint wrote: »

Thanks again everyone. I already have an "Everyday Current Account" with Santander that I use for my normal direct debits etc. Is it worth upgrading to the 123 Current Account?

as long as you have DDs for which you get more than £2/mth in cashback: yes

ValiantSaint wrote: »

Also. I'm a bit weary of walking around with a bank card, with all my cash in that account, though!

just open another account, e.g. TSB Plus, for your spending, and leave the 123 card at home in a safe place.

ValiantSaint wrote: »

On another note, would I be better off investing my money, rather than saving it?

how long can you put your money away for? Investing needs a 7-10 year minimum horizon.

ValiantSaint wrote: »

EDIT: Would swapping over to the other account cause problems with my direct debits and what have you?

no, it shouldn't. AFAIK, upgrading from Everyday to 123 maintains all your DDs and SOs, and your sort code and account number. But please confirm with Santander.