£1000 savings per month

johnnicola

Hi everybody im looking for some information about where best to save/invest £1000 per month for around 4 years.I get paid weekly so im looking at paying in £250 per week so in four years time ive got around £50 000 as a deposit on a property.

Alexland

If you are a FTBer under 40 have you considered if the Lifetime ISA would be useful? If so act quickly as we are nearly at the end of the tax year. You could add £4k now and £4k next tax year for £2k of government bonuses to be used to purchase a property with a value up to £450k. You could continue collecting £1k bonuses in subsequent tax years too. Check all the T&Cs as its a complicated product.

https://www.skipton.co.uk/savings/isas/cash-lifetime-isa

For the rest of the money, to get the best assured return, you would need to open up lots of bank accounts and associated 5% regular savers. Start by looking at the Nationwide Flex Direct account. Unfortunately the enhanced interest on these accounts expire after 12 months so you will need to reopen the regular savers. As such it's worth having a good interest savings account to keep the money in the meantime.

So basically if you want a good return you have to keep track of many accounts these days.

Alex.

johnnicola

Im over 40 years old and not a first time buyer.Ive got a poor credit rating due to stupidity in the past.Is it better to put it in a 90 day account where you cant get at your savings?,not sure if i would be accepted for numerous current account with my poor credit rating?
Any other views are much appreciated!!!

stehouk

hi
if i were you i would start by joining the free credit club on the main site, also join clearscore and noddle for all three credit reports, you will then have a clearer picture of exactly where you stand, there are tips on how to improve your credit history and if you need further advice there are some very clever people on here but you will probably have to post more financial info about yourself so they can help you further

Herbalus

If you cannot get the regular savings accounts because credit score stops you getting the current accounts needed to access them, you might do best with a simple savings account that is easy access, at least until you build up some savings. Then when you have a few £1000, you could put some into a fixed term savings account that has higher interest, and then repeat when you have built up the next lump sum.

This will not be the highest interest, but these days that tends to need lots of current accounts with a small amount in each.

skhurana

I would have opened a savings accounts (easy access/notice) after looking at the best buy tables for over a couple of week to get the best rate. And you may want to check the best rates after every short while, in case you want to switch.

Purpleheart

Have you looked at Atom bank? You'd end up with lots of accounts due to the way they work but the money is inaccessible for at least a year (depending which product you choose) and their interests rates are comparable to other banks.

johnnicola

Whats peoples views on investing into p2 peer companies.Ive seen Assetz Capital have a 30 day account that pays 4 % minimum?Also quick access account that pays 3.75%

Flobberchops

I think you should consider P2P, but also do your homework. There's a great community over at the Independent P2P Forum (google it, should be the first result) who will be able to answer your questions in more specific detail. Basically my take on it is that P2P is a potentially very good investment but illiquid and inherently risky so you definitely shouldn't consider it a straight alternative to savings accounts. Case in point, one P2P platform recently ceased trading leaving many investors' money in limbo (including me), and even some of the previously well regarded platforms are encountering loan defaults. For the lender this means delay in receiving their funds back at the very least, and worst case scenario they could lose out on promised interest, they may not get all of their capital back, or indeed any of it. No FSCS protection on P2P.

If you're looking at P2P for 4% yield, DEFINITELY exhaust all your options with regular savers and interest paying current accounts first, as you can get up to 5% in some cases, 100% guaranteed by the FSCS. My philosophy is that if you're going to forgo deposit protection, make the yield worth your time, i.e. look at the platforms offering 10% or more such as the excellent (so far) Ablrate. And, bottom line, don't invest more than you would be willing to potentially lose. If you're saving for a home I would stay 90% or more in cash just for security.

enthusiasticsaver

I personally would not consider P2P. It is not necessarily safe and potentially not that easy to get your money back. I would say regular savers are your best bet. If you cannot get the current accounts then maybe Tesco internet saver or national savings until you build up enough to invest in fixed term bonds for 1 2 or 3 years.

rathernot

johnnicola wrote: »

Whats peoples views on investing into p2 peer companies.Ive seen Assetz Capital have a 30 day account that pays 4 % minimum?Also quick access account that pays 3.75%

I think you need to decide whether you mean save or invest.

Save means you put £1000 in and know you'll be able to take £1000 out plus some amount of interest (assuming no edge cases around withdrawal penalties).

Invest means you put £1000 in and it may be worth less when you need it.