The "Save 12k in 2016" Thread!

boglehead

Urchhhh wrote: »

So bit of a long winded post sorry...
My goal is to have a £60,000 deposit when I am 30. 9 years from now. This means £6666.66 a year (odd number!). Me and OH are going to attempt half each, so £3333.33 but rounding it up to £3350 to make it a nicer number!


So my goal for 2016 is £3350! Its a staggering amount of money especially as it stand I have two maternity pays left and no job to go to! I will reassess the situation and lower the amount if need be!

Well, it is actually a bit easier if you invest this money, as you will have your savings work for you.
If you invest at a fixed 3% - you only need to save £52k over 9 years - and the compound interested does the rest; which is roughly equivalent to £5800 a year, or £2700 a year.
Alternatively if you invest at 2% (risk free), that amount increases to £55k over 9 year.

Regardless how much you earn %-wise, my point is that saving and leaving the money on an interest free account, is a missed opportunity...

Oh and inflation is working against you... £60k in 9 years is equivalent to roughly £45k in today's money.

Urchhhh

Bogelhead (not sure how to quote you, tried it but dont think it worked)
I dont understand interest rates every well tbh.
I've opened a help to buy ISA at 4% with Halifax, I can only save £200 a month in this. My online saver is only 0.9% and my other one is only 0.5%, i was just thinking about putting the extra money over the 200 I save each month into this. But should I be putting it in a higher interest rate account?

lisa110rry

Slowlyfading, will you please include me for £15,000? Never know, may make my target next year, I was so close in 2015...

bobobski

I've opened a help to buy ISA at 4% with Halifax, I can only save £200 a month in this. My online saver is only 0.9% and my other one is only 0.5%, i was just thinking about putting the extra money over the 200 I save each month into this. But should I be putting it in a higher interest rate account?

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts?_ga=1.58521642.1634257218.1447504236

http://www.moneysavingexpert.com/savings/savings-loophole

These two links have completely made my savings plan for the next year. If all goes to plan for me, I'm bummed that I may have to go as low as 3% for the "last" of my savings.

First step that I'd recommend would be to open a TSB current account - you can throw the odd pound in, no need to move direct debits, 5% up to £2,000. Only thing is you need to be able to transfer £500 in per month, although I've set mine up that the £500 comes back to my normal current account the next day.

Urchhhh

bobobski wrote: »

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts?_ga=1.58521642.1634257218.1447504236

http://www.moneysavingexpert.com/savings/savings-loophole

These two links have completely made my savings plan for the next year. If all goes to plan for me, I'm bummed that I may have to go as low as 3% for the "last" of my savings.

First step that I'd recommend would be to open a TSB current account - you can throw the odd pound in, no need to move direct debits, 5% up to £2,000. Only thing is you need to be able to transfer £500 in per month, although I've set mine up that the £500 comes back to my normal current account the next day.

So if have move in £500 a month say on the 10th, I could move it back into my normal account on the 11th and that would count? I'm glad there's no switching needed as I already switched my account in the last few weeks to Halifax as I got £100 for switching and £5 every month I meet the conditions (which I will anyway regardless). That £100 went onto pay the credit card and then I just have £425 to pay off which we are planning to do when my partners pay gets backdated in Feb!


Can someone give me advice on children's savings? We have a first saver account for our daughter with RBS with an interest rate of 1%. Just while looking up TSB current accounts I noticed they do an ISA that is 3% for children. Should I open one of these for her? We pay in around £10 a month for her

frasersmum123

I feel very naive now. I was just going to put all my savings into my 1.61% RCI saver. I am very risk adverse though.

bobobski

So if have move in £500 a month say on the 10th, I could move it back into my normal account on the 11th and that would count?

Simply: yes. I have had mine open for a few months with only a little bit in there (as I was paying off a loan to a friend until recently) but despite that, my standing order system has meant I have actually been getting the full 5% interest. My First Direct regular saver will mature in February and with that money I will max out my TSB current, so with the new changes to tax on interest I (even as a higher rate earner) will be getting £100 per year just for shoving £2,000 into a current account and having these monthly standing orders. Just watch out that you don't pay out the £500 on rent payment day or somesuch!

I feel very naive now. I was just going to put all my savings into my 1.61% RCI saver. I am very risk adverse though.

I really recommend you look at those two links. For big lump sums there's not a lot you can do in terms of bank accounts (vs stocks and shares investment, for example) but if you're saving some money every month, I'm a big fan of regular savers at 5% or 6%. I am risk averse too - my savings are for a house! - but if you're investing in a FSCS-regulated bank (most likely any that you have heard of but easy to find out) there's not many safer places to put your money! When you say risk, what are your concerns exactly? Are we talking banks going under or getting the standing order system wrong?

Buffythedebtslayer

bobobski wrote: »

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts?_ga=1.58521642.1634257218.1447504236

http://www.moneysavingexpert.com/savings/savings-loophole

These two links have completely made my savings plan for the next year. If all goes to plan for me, I'm bummed that I may have to go as low as 3% for the "last" of my savings.

First step that I'd recommend would be to open a TSB current account - you can throw the odd pound in, no need to move direct debits, 5% up to £2,000. Only thing is you need to be able to transfer £500 in per month, although I've set mine up that the £500 comes back to my normal current account the next day.

I feel really silly now. I have been actually using the TSB account!

I have a Halifax ISA. It is paying 0.8 %.............

I suppose I ought to move some money then.

hmmm.

dark.knight_3

I'll join in again for 2016. Didn't quite get anywhere near my original amount of 11,000.00 in 2015 so reduced it to 9,000.00. Should be able to do 9,000.00 again in 2016

Eco_Miser

Urchhhh wrote: »

So if have move in £500 a month say on the 10th, I could move it back into my normal account on the 11th and that would count?

Provided that you will have £500 in the account excluding the £500 just transferred in, you could do it same day. (You can't know which order the transactions will occur in, so you need the buffer - or you could do it manually, by Faster Payments, so you know the money comes in before it goes out.)