specific case savings 2017 options

alanturing

Hi experts,

Quick question… I will not be renting next year, and had a huge raise at my current job… So I expect to have £3,000 spare per month… Counting jan 2017 to dec 2017, I will end up with £36,000 by the end of the year…

Truth is, 2017: I want to focus on savings, what should/can I do with this money?

I have 0 knowledge on best savings accounts, interest rate or anything related to finances/savings…

My only thought was that If I could get the 1% and reinvest each month, I would get £30 first month, £60.3 second month, £90.9 third month, £121.8 fourth month, and so on….

Any help will be appreciated!

notbritishgas

alanturing wrote: »

Hi experts,

Quick question… I will not be renting next year, and had a huge raise at my current job… So I expect to have £3,000 spare per month… Counting jan 2017 to dec 2017, I will end up with £36,000 by the end of the year…

Truth is, 2017: I want to focus on savings, what should/can I do with this money?

I have 0 knowledge on best savings accounts, interest rate or anything related to finances/savings…

My only thought was that If I could get the 1% and reinvest each month, I would get £30 first month, £60.3 second month, £90.9 third month, £121.8 fourth month, and so on….

Any help will be appreciated!

No you would get £2.50 in the first month.

alanturing

I put the % per month, which is incorrect, like I said my knowledge is 0, but I do know I have an opportunity here, and want to do the right thing. Ignore my stupid example please, and thanks! Any idea?

chockydavid1983

People will need to know more to offer any input:
How much do you have at the moment?
Do you have an emergency fund?
What are your goals? House purchase? Etc
Will you need access to the money in the next 5 or 10 years?
Etc

alanturing

Thanks for your reply, see below:

How much do you have at the moment?
I have £5,000.-, but from January on, every month I will be saving £3,000.-… (Example: February the 1st I would have £8,000.- March the 1st £11,000.- and so on…)

Do you have an emergency fund?
I do, I would not be touching this money…

What are your goals? House purchase? Etc
If there is a great purchase opportunity I would go for it, but the main goal is to not let this savings sit around, make the most out of them.

Will you need access to the money in the next 5 or 10 years?
I won’t need access to the money in the next 1 or 2 years (5, I do not know)

chockydavid1983

If you may need the money in less than 5 years, you're probably best off saving rather than investing:
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Eco_Miser

You can get rather more than 1% Annual Rate.
Use as many of these regular savings accounts as you need.
You may also find opening some of these current accounts useful (you'll need to open some to access the RSs.)

enthusiasticsaver

1 to 2 years is relatively short term. If you are not renting does that mean you already own a house so do not need it for house purchase?

As others have suggested you can save in current accounts and regular savings accounts and there is loads of information on this forum as to how to do this but no point in going into too much information now as rates may change between now and January - many of the banks are reducing them.

If you can look longer term then you might look at investing rather than saving either in a pension or stocks and shares isas which in the long term should perform better but obviously there are no guarantees. You do not necessarily have to put the whole £3k monthly into the same product though so you could hedge - ie £1500 into current accounts and regular savers and the other £1500 into a personal pension (or your company pension) and stocks and shares isa. That does mean though the £1500 invested is not so readily accessible.