Hi, im a savers noobie Help

Luffy321

Hi i just recently turned 18 and inherted £10,000 from a trust, right now it is lying in a current account and i know that is not the best place for it. Since im going uni i wont need the money. My aims for the money is to help me to get onto the property ladder when the time comes.

Can anyone advise me on the best saving account for me considering what i want to do with the money and with low risk assessment. Thanks

Aegis

If you're sure you won't need it, you could do worse than putting £3k into a cash ISA and £4k into a stocks and shares ISA investing in low-risk options
like UK bonds and gilts, or some more fun stuff if your attitude to risk changes a little. If that doesn't take your fancy, then something like a fixed-rate 1- or 2-year bond at the 6.5-7% rate might suit you well for the stuff that doesn't fit in the cash ISA.

All in all it comes down to your call, but treat that as a little food for thought.

Luffy321

I think im too inexperienced for playing the stock market, plus it seems volatile to alot of things depends on the stabilty of the bank, inflation, interest etc and the way the economy is looking right now i dont think its worth the risk.

The second options sounds good, can you refer me to a bank that offers this? Thanks

chesky369

Are you a tax-payer? If not, then don't bother with ISAs yet - plenty of time for them when you reap the benefit of the tax incentive. Open a high interest savings account immediately and bung it in there while you think about fancier things to do with it. Sainsbury's or ICEsave are good.

chesky369

And don't forget to ask for a tax-exempt form, so that your interest doesn't have tax deducted at source.

Aegis

chesky369 wrote: »

Are you a tax-payer? If not, then don't bother with ISAs yet - plenty of time for them when you reap the benefit of the tax incentive. Open a high interest savings account immediately and bung it in there while you think about fancier things to do with it. Sainsbury's or ICEsave are good.

It's never a bad plan to get into ISAs early. With 10k stored up, he'd be getting a good interest rate on his capital and would be able to keep as much of it as he liked in a tax free wrapper when he started his first job. Always worth looking to the future benefits of ISA investment (I know I wish I had!)

Luffy321

Im a student so i all need to fill in is that HM excemption tax form thingy

Mecoconuts

If you want easy access to your cash with reasonable high rate of interest open an ING Direct Savings Account.

They're savings account is currently at 5.25% and pays the interest monthly so you can see exacltly how much it's making.

Once your account is open with cash in it ING will also let you transfer £3000 to a cash ISA (once a year as per your entitlement) with a click of a button ....super easy.

http://www.ingdirect.co.uk/savings/our_savings/about_our_savings/aboutoursavingsaccount.asp

UPDATED

In fact after having a quick look in the MSE Forums it's looks the the best account to go for at the moment is Bradford & Bingley's Saving account at 6.4% AER here :

http://www.bradford-bingley.co.uk/savings/product/internet-saver.asp

Aegis

Mecoconuts wrote: »

If you want easy access to your cash with reasonable high rate of interest open an ING Direct Savings Account.

They're savings account is currently at 5.25% and pays the interest monthly so you can see exacltly how much it's making.

Once your account is open with cash in it ING will also let you transfer £3000 to a cash ISA (once a year as per your entitlement) with a click of a button ....super easy.

http://www.ingdirect.co.uk/savings/our_savings/about_our_savings/aboutoursavingsaccount.asp

UPDATED

In fact after having a quick look in the MSE Forums it's looks the the best account to go for at the moment is Bradford & Bingley's Saving account at 6.4% AER here :

http://www.bradford-bingley.co.uk/savings/product/internet-saver.asp

Glad to see that update! ING have shockingly bad rates given how much they harp on about being competitive and all.

chesky369

Why on earth would anyone recommend ING any more? They've treated their customers shabbily and their rate's c--p