Suddenly in a position to save.. But confused!

Brum

Hi All. I've not logged on here for 9 years and as you can imagine since then things have changed. I will be receiving the proceeds from my house sale this week which will be anything from £25-27k. I have £10,700 worth of debt to family and credit cards which will be immediately settled, plus I will be using some for a holiday at the end of this month to celebrate the big 4-0. I'm estimating I will have around £12.5k left afterward to put away, plus I've recently taken a new job paying £32kpa after never earning more than £23k before! The increase in income means after I have paid my rent/bills and food/socialising/housekeeping expenses with my fiance I will have £1300 a month left over. Of course, it would be very lovely to spend all that a month, but I really cannot think of anything I really want to buy! I'm thinking I will put half of that (at least) into a savings account which will still give me a good amount of pocket money each month.
With no immediate plans to buy a house and our wedding on hold pending my fiance's work contracts coming through for next year, can anyone advise me on my new found relative wealth? :rotfl:

Due to an errant joint account with my ex my credit isnt the best, but everything in my name has been serviced really well for the last 4 years. What I am looking for is advice on any particular savings accounts I should look at, is it better to spread my money around? Should I change my standard HSBC current account to anything else? You lot were very helpful when I massively in the hole financially and I hope you can help me again now too.

Dan83

Hi,
Well done on the new job!

It depends mainly on what you want, with tha amount you have you could open a few higher paying more interest, but if you can't be bothered with the hassle you could bung it in 1 account not paying the best rate but it's all in 1 place and easy to manage.

With your monthly saving, the HSBC regular saver will be a good option.

eskbanker

Start here: http://www.moneysavingexpert.com/savings/which-saving-account

colsten

What are your pensions arrangements? At age 40, some 20% of your salary should go into pensions.

http://www.itv.com/thismorning/hot-topics/money-martin-lewis-pensions-explained

Bean303

Nationwide are offering a 5% AER interest rate savings account, for 1 year. Its easy access and you can take money out as and when needed. You can't increase deposits by more than £500 in a month but that should be perfect for you. In a year's time it reverts to c. 1.5% but by then you may well be thinking about buying another place with your fiance. The only 'catch' is you have to open a Natiowide flex current account first, however they are really good and I thoroughly recommend them over HSBC. Great customer service and online facilities etc, I've got everything with them now (bank account, credit card, savings, 2 mortgages). If an existing Nationwide customer recommends Nationwide to you, and you formally open an account based on that, then you can share £200 (£100 each). Once the bank account is opened you just need to pay in a minimum of £750 a month i.e. from your wages, but again that should be fine for you. It's then 2 minutes work to open the 5% savings account online and set up a regular transfer from the current account to the savings. Also Nationwide only offer their best mortgage rates to existing customers so that should set you up for a year's time...! NB I don't work for them honest, I work for Virgin!

diamonds

colsten wrote: »

What are your pensions arrangements? At age 40, some 20% of your salary should go into pensions.

http://www.itv.com/thismorning/hot-topics/money-martin-lewis-pensions-explained

"One way to build up your pension is what I call ‘forgotten gold’. That means each time you get a pay rise, if you’re lucky enough to, put a quarter of it into your pension. As it’s new money you won’t miss it in the same way"

I think Martin forgot the fake gold of inflation, which most low earners esp minimum wage dont get a wage rise in line with inflation. Only when minimum wage rises does inflation get some kind of counteraction.


Minimum wage should have a inflation tie in, then you payout less working benefits.


20% = £120 a month in a pension plan and live in more poverty with more state help in rent ...unless it gives medical retirement on pre existing conditions 0% is my best investment for me and the state saving money :rotfl:

Brum

Bean303 wrote: »

Nationwide are offering a 5% AER interest rate savings account, for 1 year. Its easy access and you can take money out as and when needed. You can't increase deposits by more than £500 in a month but that should be perfect for you. In a year's time it reverts to c. 1.5% but by then you may well be thinking about buying another place with your fiance. The only 'catch' is you have to open a Natiowide flex current account first, however they are really good and I thoroughly recommend them over HSBC. Great customer service and online facilities etc, I've got everything with them now (bank account, credit card, savings, 2 mortgages). If an existing Nationwide customer recommends Nationwide to you, and you formally open an account based on that, then you can share £200 (£100 each). Once the bank account is opened you just need to pay in a minimum of £750 a month i.e. from your wages, but again that should be fine for you. It's then 2 minutes work to open the 5% savings account online and set up a regular transfer from the current account to the savings. Also Nationwide only offer their best mortgage rates to existing customers so that should set you up for a year's time...! NB I don't work for them honest, I work for Virgin!

That's absolutely fabulous advice, plus my fiance banks with Nationwide! Thank you! I owe you a drink! :beer:

Brum

Ok..

Plan is to put £10500 into three accounts.
£3000 into Tesco
£2500 into Nationwide (plus get my Fiance to "introduce" me)
£5000 into RBS Vantage.
Set up a standing order between the Nationwide and the RBS accounts of £1000 a month on the same date.

This should in theory net me £71 from tesco, £98 from Nationwide and £118 from RBS. total £287 for the year.. Does that sound right?

The excess from my wages each month will go into an HSBC flexible saver account so I can use that as and when I need to (or not). I will probably need access to this for holidays etc.

B_G_B

Brum wrote: »

RBS Vantage.

?

Probably mean BoS Vantage.

colsten

Brum wrote: »

The excess from my wages each month will go into an HSBC flexible saver account so I can use that as and when I need to (or not). I will probably need access to this for holidays etc.

Why not use the Nationwide FlexClusive Regular Saver, to get 5% on your spare cash as well?

eskbanker

Brum wrote: »

Ok..

Plan is to put £10500 into three accounts.
£3000 into Tesco
£2500 into Nationwide (plus get my Fiance to "introduce" me)
£5000 into RBS Vantage.
Set up a standing order between the Nationwide and the RBS accounts of £1000 a month on the same date.

This should in theory net me £71 from tesco, £98 from Nationwide and £118 from RBS. total £287 for the year.. Does that sound right?

No, you'll get the equivalent gross amounts, no need to net them by deducting 20% tax as from Wednesday, unless your cumulative income from savings takes you over £1,000.