Best place for small savings

zenshi

I am putting £200 aside every month for major roof works in about a years time. I'm aware this small amount isn't going to get me much but apart from ISA or having a bash at premium bonds...is there anything else I could look at?

bigadaj

Ideal for a regular saver, though you'll probably need a current account with the provider, so depends on who you bank with or are prepared to open a current account with.

HSBC / first direct offer 6% currently, and there are other options paying 3-5%.

Not a fortune but £200 a month for a year would earn you around a maximum of £70-£80, better than a poke in the eye for a few minutes work setting it up.

masonic

If you want a bit more flexibility in your savings schedule than a 6% regular saver would afford, then the best high interest current accounts offer rates of 5% with complete flexibility over contributions and access, so there really is no need to compromise on interest rate when saving this sort of amount.

teddysmum

Why not open a number of interest paying current accounts ?

badger09

teddysmum wrote: »

Why not open a number of interest paying current accounts ?

For £200 per month in savings? Why?

OP has substantial debts, so is unlikely to have large amounts of cash sitting around doing nothing;)

teddysmum

badger09 wrote: »

For £200 per month in savings? Why?

OP has substantial debts, so is unlikely to have large amounts of cash sitting around doing nothing;)

Instant access with no loss of interest, but if the person has debts, circulating the required inwards payments could well be a problem.

zenshi

Thanks for the input guys! For such a minimal gain of interest and the fact that I can only drip feed the savings to the required amount....I may well just take a punt and go for premium bonds and who knows!

Yes, I do have substantial debts but sadly my roof is becoming more sieve like and now is becoming more of a priority

Dan83

Why not P2P? Either invest £200 a month in to short term loans, or buy long term loans and sell them when you want your money. Selling loans can take a while and I'm not sure is all platforms allow the sale of loan parts.

zenshi

I've never heard of P2P!? I cannot afford to take any risk with losing any of my £200's

bigadaj

zenshi wrote: »

Thanks for the input guys! For such a minimal gain of interest and the fact that I can only drip feed the savings to the required amount....I may well just take a punt and go for premium bonds and who knows!

Yes, I do have substantial debts but sadly my roof is becoming more sieve like and now is becoming more of a priority

The odds on premium binds aren't great and for you, potentially more importantly, there is a months delay in entering the draw.

You'll be very lucky to get one £25 win on the sums your investing, regular savers will guarantee nearly three times that amount but it's your choice.

jimjames

Dan83 wrote: »

Why not P2P? Either invest £200 a month in to short term loans, or buy long term loans and sell them when you want your money. Selling loans can take a while and I'm not sure is all platforms allow the sale of loan parts.

That seems a bit OTT for £200 when you can get 6% guaranteed with zero risk.