Need advise about my £20K

BUKI_2

Hi All


I been with LLOYDS since I opened a bank account (back in 2000 something)
and do not hold any other bank card - why? not sure really!!

Anyway, been working hard and tried to save up from start.
Currently hold £20,000.00 (£20K) in my account as CashISA but to be honest
the interest rate is soooooo low 0.60%


Wondering, if anybody else would have done something else instead ?
Like in, to use a different service or saving method for higher rate etc?


I am a bit of clumsy when it comes to this things ... finance and rates etc.




What I like to do with the money?
At moment, not really sure ... (no, not giving to you tho' lol)
Thinking of buying a property at later stage or investing in something (if I come across an opportunity)






Anyway, any advise would be appreciated.




Thanks

ro2778

It's an interesting position to be in but it's impossible to give any advice without more information. Any advice you receive here is not professional advice either so some people may tell you to talk to a financial advisor but that's also a bit boring! I would say have a look at your income and outgoings, decide what your short and long term goals are, consider timescales and whether they match your goals, and decide what level of risk you can tolerate. Then you'll be in a better position to answer the question what do I need money for and when, then you can narrow down the suitable options. Right now you're asking what can I do with 20k in my cash ISA and the answer varies from nothing to put it all on black.

BUKI_2

oh by the way...


my monthly income is just about £1,450.00
and able to save between £500 and £1000 per month (depending on monthly expenses, holidays etc)

BUKI_2

ro2778 wrote: »

It's an interesting position to be in but it's impossible to give any advice without more information. Any advice you receive here is not professional advice either so some people may tell you to talk to a financial advisor but that's also a bit boring! I would say have a look at your income and outgoings, decide what your short and long term goals are, consider timescales and whether they match your goals, and decide what level of risk you can tolerate. Then you'll be in a better position to answer the question what do I need money for and when, then you can narrow down the suitable options. Right now you're asking what can I do with 20k in my cash ISA and the answer varies from nothing to put it all on black.

You are right, it is a quite broad spectrum...
I was rather thinking if someone would have a better idea / suggestion
which scheme I could use to get more money out of the interest rate.


Indeed, fixed rates are higher but then locked for so many years or fined if agreement is broken.




I admit, it's a tough step and I am not sure myself to be quite honest.
and 20k is not big money ... considering nowadays standards and expenses.


hmmmmm

Linton

It is helpful to allocate your money into 3 categories, in priority order....
1 - emergency money to cover unemployment and unexpected major expenditure eg problems with house or car. Suggest this is set to 6 months living expenses and at the moment is best left in a high interest current account.
2 - money for known major expenses in next 5 or so years. eg house deposit, new car. Again at the moment the best place for this is high interest current accounts.
3 - money once 1 and 2 are satisfied, long term (>> 5 years) savings. Here investing in share based funds becomes important. These will generally provide a better return than cash but can be volatile - eg losing money over the short term.

Are you paying into a pension? Are you paying sufficient into a pension to meet your retirement needs?

xylophone

You have a Lloyds Club account so that you are earning interest of 4% on up to £5000?

If you will be a first time buyer, had you considered a HTB ISA?

Had you considered transferring the ISA to another provider so as to get a better rate? Some providers offer flexible ISA so that you could take out, use high interest current accounts then repay the ISA in the same tax year.

Had you considered high interest current accounts ( TSB plus/Nationwide Flexdirect/ a couple of Tescos/ BOS etc ?

BUKI_2

Linton wrote: »

It is helpful to allocate your money into 3 categories, in priority order....
1 - emergency money to cover unemployment and unexpected major expenditure eg problems with house or car. Suggest this is set to 6 months living expenses and at the moment is best left in a high interest current account.
2 - money for known major expenses in next 5 or so years. eg house deposit, new car. Again at the moment the best place for this is high interest current accounts.
3 - money once 1 and 2 are satisfied, long term (>> 5 years) savings. Here investing in share based funds becomes important. These will generally provide a better return than cash but can be volatile - eg losing money over the short term.

Are you paying into a pension? Are you paying sufficient into a pension to meet your retirement needs?

Pension, is it enough?


My current job auto enrolled me to a pension scheme
its 3% from my wage + tax man apparently adds some on top and then + 3% from the company.


I recently seen about £90 taken off my wage for pension.
God knows if that is enough ...




Interest Current Account


hmmm, I have had Lloyds classic account from start
and yes it is the basic card and would not expect interest rate from it.


I assume once I upgrade to higher bank account then they may include it.
Having said that, there is a fee having to pay for upgraded cards - which always turned me off.


Just looked into this: moneysupermarket.com/current-accounts/high-interest-bank-accounts/
I assume all these card would eventually require a monthly fee.

hmmmm you raised good point there.




Thanks

BUKI_2

xylophone wrote: »

You have a Lloyds Club account so that you are earning interest of 4% on up to £5000?

Recently visited the local branch and mention this Lloyds Club to them but they said something about
"two separate debit cards" - did not really understand what that is about!!


This is what it stated on their site:


Up to 4% AER variable credit interest
Earn credit interest on your whole balance up to £5,000, if you pay two separate Direct Debits each month. Look here: lloydsbank.com/current-accounts/club-lloyds.asp#tab-row-2




I am totally lost what it meant by the 2 separate debit cards!!

xylophone

"two separate debit cards" -

Two separate direct debits to be paid out each month and the account credited monthly with at least £1,500.......

BUKI_2

xylophone wrote: »

Two separate direct debits to be paid out each month and the account credited monthly with at least £1,500.......

ahhhhhh what a shame!!
I am short about £50 for not reaching 1,500.00 per month.
Unless they would accept 2 payment methods: 1 from my employer + 1 cash deposit :P ??


I already got at least 2 Debit: car insurance and my fitness.

adindas

BUKI wrote: »

oh by the way...

my monthly income is just about £1,450.00
and able to save between £500 and £1000 per month (depending on monthly expenses, holidays etc)

I believe you are not living in London.
Did you pay rent or living in family member ?
Are you not living exclusivey with Tesco Value Range ?
Are you not socialising ?

If the answer to all of that are no than it is extremely good.

How did you do that ?