Savings Newbie - Opinion?

ShannonP_

Hi!

I'm new to this forum - sorry if a similar question has already been asked.

I have just graduated from university this summer and I have recently started at my new job. I want to make the most of my money each month but still want to enjoy it too.

I have been looking at the NatWest Savings Builder account which offers a 1.5% monthly interest rate when your balance increases by at least £100 each month. It is an easy access account with no set deposit/withdrawal limits and no penalties for not depositing any money in (interest drops to 0.01% when the balance doesn't grow by £100).

My plan is to put £200/£300 aside into an account like this each month for any big future spends - but it is nice to know that if I needed/wanted the money there is no penalty for withdrawal.

Does this account in particular sound like a good idea or are there any other ones I should think about that compare?

Thank you

ColdIron

ShannonP_ wrote: »

I have been looking at the NatWest Savings Builder account which offers a 1.5% monthly interest rate when your balance increases by at least £100 each month

The interest is 1.5 per annum not per month

Does this account in particular sound like a good idea or are there any other ones I should think about that compare?

Most regular savers offer a higher rate than this, up to 5%, but you'll need to look again after a year or so, See Regular Savings Accounts

ShannonP_

Ahh yes sorry - I meant that the interest is paid monthly.

I’ll take a look at that thread thank you!

Sarastro

By all means save up for big expenditure items, but very much more tax efficient and worthwhile long-term to put something in a pension - even if it's only a small amount.

atush

Did you join your work pension?

That is where to start alongside building up an emmergency pot as you are preparing to do.

ShannonP_

Thank you Sarastro & atush - I haven't even thought about the pension scheme which is something I will definitely enquire about at work!

Thanks again for all replies thus far

cynicaldoc

Get cracking with a pension.


Do you own a house? If not you could consider opening a stocks and shares LISA. HMG would add 25% on top of whatever your annual additions come to every year. Plus you will earn whatever returns you may (or may not...) make from your investments. They will do this every year until you are 50. Max contributions of £4000 per year (plus 25% or £1000 from HMG). If you choose to then buy your first home, you can take out all your money, including HMG contributions, to act as a deposit on your first home. Worth reading about.

ShannonP_

cynicaldoc - Thank you very much that does sound like a good idea as I don't own my own home just yet. I'll definitely have a look into that thanks

atush

you should have been enrolled in t he pension when you started the job.

Why didnt you?

ShannonP_

I have only just started the job and I am set to go through the details and documents relating to this very soon. Thanks again for your help - will be joining the pension scheme at work.