Saving - on a lower income

aj23_2

Ak92 wrote: »

I would use LISA for a house. I work within the civil service so I have a pension with them which I have heard is pretty good. Is there a reason why I shouldn't use both if I have the funds to do So, or is it just worthwhile to save in the young savers account for long term?

Thanks Kim, that clears things up I will have a quick read through the t&c and see if there is anything in there that doesn't sound worthwhile for me.

I think if you put £300 a month for the next 11 months (which is higher than the cap for Leeds) then it will convert into the Home saver account. You will earn more interest that why. Maybe open a Leeds one in a years time?

To get 2.25% for 11 months, then 2% thereafter, and still be able to deposit is a good account.

Kim_13

Ak92 wrote: »

I would use LISA for a house. I work within the civil service so I have a pension with them which I have heard is pretty good. Is there a reason why I shouldn't use both if I have the funds to do So, or is it just worthwhile to save in the young savers account for long term?

Thanks Kim, that clears things up I will have a quick read through the t&c and see if there is anything in there that doesn't sound worthwhile for me.

No, nothing wrong with using the LISA and a pension to save for later life, in fact this is what the government's intention was, hence the withdrawal charge if using the money for anything other than a first home or retirement. Only put money in that you can afford to lock away.

The original poster's circumstances are slightly different to yours, hence not advising the LISA as they may not be able to afford to only to touch the money in the permitted circumstances.

The LISA is a clear winner for saving for a home unless there is a chance that a property or part of a property will be inherited before the time comes to buy, as this would mean that the account holder is not classed as a first time buyer for LISA purposes and cannot then get the money out before age 60 without paying a penalty.

Ak92

Thanks everyone. Well I tried to open a FD account so I could make use of 5% savers account, however I was rejected and not sure Why? Very disappointed, can I try again? Or do I just have to try another provider? I have applied for nationwide flex direct also, hopefully that comes back with better news.

Superscrooge

HSBC, M&S Bank and Santander also have 5% regular savers if you open a current account.

I seem to remember reading on another post you have to wait 6 months before making a fresh application with First Direct.

Kim_13

First Direct are known for being picky as to who they accept unfortunately. HSBC and M&S are also part of the same group so I would give it some time before applying to those. M&S requires a switch too, so it's arguably the hardest of the Regular Savers to qualify for.

Santander's 5% applies if you are a 123 or Select customer, it pays 3% otherwise. It only takes £200 per month also, rather than the most common £250 or First Direct's £300.

longleggedhair

It certainly is possible, I started off with nothing and built up to £200,000 now, and have been on a lowish wage for most of that time. I have had the good years of stock market growth and was lucky enough to inherit a house which kept my outgoings down, so most people wouldn't have been as lucky as me, however if you really watch the pennies it soon mounts up.

Ak92

So I managed to open a flex direct account with nationwide which is the good news. Bad news is that I don't necessarily have 2.5k to put in the account as a lump sum. Instead will be drip feeding the account.

How long do I need to wait until I can apply for the regular savers at 5%?

Thanks

Kim_13

Ak92 wrote: »

So I managed to open a flex direct account with nationwide which is the good news. Bad news is that I don't necessarily have 2.5k to put in the account as a lump sum. Instead will be drip feeding the account.

How long do I need to wait until I can apply for the regular savers at 5%?

Thanks

Day one with a FlexDirect, as it doesn't require any other criteria. The requirement is simply to hold a FlexDirect.

It is those with a FlexAccount that need to either switch into the account or pay in £750 in three calendar months before they can open a Flexclusive Regular Saver.

I would leave the Regular Saver until you have filled the FlexDirect, otherwise you are just going to be waiting longer to receive your interest as both pay 5% currently. The FlexDirect pays the interest monthly and the Regular Saver on the anniversary of the account opening.

Ak92

Thanks for the info Kim, I will follow your advice and fill the account first. As I have previously posted on this thread, I have opened holmesdale young saver account at 2.25%. Do you think I should put the money I would have into the flex direct Instead? They are both easy access accounts. I am just after a little advice as I am still after best way to maximise my money. Thankyou

badger09

Ak92 wrote: »

Thanks for the info Kim, I will follow your advice and fill the account first. As I have previously posted on this thread, I have opened holmesdale young saver account at 2.25%. Do you think I should put the money I would have into the flex direct Instead? They are both easy access accounts. I am just after a little advice as I am still after best way to maximise my money. Thankyou

I don't know anything about the Holmesdale Young Saver, but I do know that 5% is more than double 2.25%:cool: