Help Needed for a youngster

TomsMom

oliveoyl wrote: »

Hang on a sec.... the interest payment won't be £15 a month on £320, it'll be about £1.30 @ 4.86% net.

Yeah, that's right (it's late, I need to go to bed!). Both Tom and I have got it mixed up. £15 is roughly a year's interest on £320. He'll be rather disappointed when he reads that :sad:

Crabman

TomsMom wrote: »

You need to be 18 to open ICICI's HiSave account. Tom is only 16.

:doh: sorry about that! Now I see why you opened the HSBC account

wiseman405

oliveoyl wrote: »

Hang on a sec.... the interest payment won't be £15 a month on £320, it'll be about £1.30 @ 4.86% net.

arrrr....O well. Pennies Make pounds Disappointed still. How do you work that out? I was thinking it was rather high. Wondering why i opened an ISA with interest like that!!

Are yearly interest account usually better? Have i not shopped around enough. I can always cancel the HSBC one, haven't even had confirmation yet.


As for the richard Branson thing. Ha! i wish! Would be great. But you may now think i am stupid but i have always wanted to do it......

All this money is for a deposit on a house for me to make money on when i'm older. I have read that some people dont really like property. But if i can find a well priced house in an up and coming area i would really be tempted for buying. The ISA is probable going to be my deposit. Heres the mad part. I want the house for when i'm 20!!

If i can find a deposit. And plenty of money for legal fees. Tidying the place up. I figure if i can get tenants. They will pay the mortgage for me. And maybe a little bit for my self (to put in a high interest ISA orsavers )

Always had the ambition to do this!

Am i mad?

Thanks
Tom

oliveoyl

Hi Tom

Interest calculations are simple if it's based on having the same amount in an account for a year, or even a month.
Yearly = your amount (£320) divided by 100, multiplied by 4.86% = annual interest, and to find out the monthly figure, you just divide the figure you came to there by 12.
Though, chances are you won't have the same amount in the account the whole time, interest rates will change during the year etc.

I don't think it makes much difference if the interest is paid monthly or yearly. You don't need to cancel the HSBC account.... you can have as many savings accounts as you like. Is your current account with the HSBC? I think it's handy to have a savings account linked to your current account... that way you can put 'short term' savings (savings for birthdays, christmas etc.) in there and still have easy access.

Your next move should be to open an ISA and put all of your long term savings in there. It's tax free so you get all of the interest (if it says you get 6%, you get the full 6%, unlike savings accounts).

It's good that you're asking questions... there are so many different types of accounts it is very confusing to start with.

By the sounds of it you will be the next Richard Branson... and he's a bit mad as well :rotfl:

wiseman405

Thanks for the branson comment i like it! I dont want a beard though!

I have opened an ISA with NS&I. I have put the £1000 pound deposit in it. And now i am looking at putting £166 a month in this. To make it upto the £3000 maximum.

As for the saver. i can only at the minute have one saver (unless i just put £100 in the HSBC and then setup another one. Could you maybe suggest a high interest rated one?)

I am thinking of putting £320 a month into a high interest savings account. to make around £3,900 by the end of the year + Interest. This money will NOT get touched so i would appreciate a nice link to a good savings account

Sorry. I am just young and dont understand all this business!!! And i am limited to certain accounts due to my age! Not fair for the young ambitious!

Thanks
Tom Wiseman

oliveoyl

HSBC do something called a regular saver... you'll need to look to see if you can open one at 16. This is a one year only account which pays 8% interest (less tax). You set up a standing order from your HSBC current account for anywhere between £25 - £250 a month, but you can't make any withdrawals. At the end of it they'll pay the total plus interest into your savings account and close the regular saver.

Martin's bank and savings guides are quite easy to understand and might help you a bit... the tabs are on the top of the forum pages or can be accessed from the home page.

Gemmzie

I know you're after savings for but for a current account - 10% (balances up to £1000, only need to pay in £250 a month)! Just found this myself today

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=premier21&ct=curracchome

wiseman405

That looks interesting! What happens when you get over the £1000...

On second thoughts. i will read it myself
Thanks
Tom


EDIT: A never before offered 10% AER (fixed until 31.10.08) on balances up to £1,000, 0.10% AER (variable) on balances over £1,000.

Does this mean if i go over £1000 i only get 0.10% AER interest rate??

I will definetly get over £1000 in the high interest account!
Thanks
Tom

The_Fiddler_2

You could always move the excess into a savings account though

wiseman405

Sooo have like 4 accounts? Get up to £1000 in that one. Then move over the rest into the HSBC or ISA account. And keep my current account with Natwest for wages etc.

Cheers
Tom