Savings and investment

StevenGude

Hi
I've build up a rainy day fund and would like to put it mainly into savings accounts and a smaller proportion into an investment account for long term growth.

I currently have a TSB account at 5% on 1.5k.


For nationwide, it says you have to have £1000 per month going in. Can I Have £2500 In there and then transfer £1000 In one day and out the next back to a holding account?

Any suggestions appreciated.

My pot is 5-10k so reasonably small!! Happy to lock up to 40% away for a while and 5-10% into investment.

masonic

You don't need to wait a day. Don't forget about the Nationwide 5% regular saver. A pair of standing orders between your TSB and Nationwide account would serve you well.

There are lots of options for investing. A forum search will turn up various links to read and ideas to consider.

StevenGude

Hi sorry if this sounds stupid but

Can I get 5% on 2.5k in the flex direct account and 5% in the regular saver?

masonic

StevenGude wrote: »

Can I get 5% on 2.5k in the flex direct account and 5% in the regular saver?

Yes you can have both accounts, both paying 5%. The regular saver is not a one-off rate for a year like the current account, you can open another when the first matures.

StevenGude

Thanks I've applied for this.

Do you think HL would be a good fund platform for a complete beginner like me?

webjaved

StevenGude wrote: »

Thanks I've applied for this.

Do you think HL would be a good fund platform for a complete beginner like me?

Have a look at the different platforms and the fees they charge - then work yourself from there.

I'm with Vanguard at the moment.

eskbanker

webjaved wrote: »

StevenGude wrote: »

Thanks I've applied for this.

Do you think HL would be a good fund platform for a complete beginner like me?

Have a look at the different platforms and the fees they charge - then work yourself from there.

I'm with Vanguard at the moment.

As per point 4 in the copy/pasted text below, I'd always advocate choosing what to invest in before platform selection.

For those considering starting off investing, research the info at places such as:

https://www.moneyadviceservice.org.uk/en/articles/investing-beginners-guide
https://www.hl.co.uk/beginners-guides/investing
http://www.monevator.com
http://diyinvestoruk.blogspot.com/

as well as bearing in mind a number of key points of principle:

1. Only consider investing once you have adequate accessible cash reserves.
2. Only invest if you're happy to commit for at least 5-7 years and preferably 10-15 or more.
3. Diversify - ignore individual shares, etc, and concentrate on collective investments that spread your eggs over many baskets. Global multi-asset funds are a good place to start, available from the likes of HSBC Global Strategy, Vanguard LifeStrategy, Blackrock Consensus and L&G Multi-Index.
4. Choose what you want to invest in before considering which platform to hold it/them on.
5. Keep an eye on ongoing costs for funds and platforms - they shouldn't be the primary consideration but can make a noticeable difference over the long term.
6. If you have headroom within your annual ISA allowance, use this to open a S&S ISA, which then protects (at least some of) your investments from taxation on dividends and capital growth.

StevenGude

I'll do some research, but it's quite difficult for a novice like me to know which fund to go for

badger09

StevenGude wrote: »

I'll do some research, but it's quite difficult for a novice like me to know which fund to go for

No one was born knowing which fund to go for, we all had to start somewhere;)

eskbanker has linked to several useful sites. When you've had a chance to read through them, come back with your questions. Regular posters are very willing to help, but can't tell you what to do.

StevenGude

I've read through the advice on the above links and things make a bit more sense.

My main two questions are;
- My plan is open a stocks and shares isa. Within this can I split my cash into two different funds? Say I make an initial deposit of £1000, can I do £800 into lower risk funds and £200 into higher (maybe 100% equity based) funds
- There is SO many funds to choose from. How do I possibly choose or do I just pick one based on performance?

My 800 I'd like to put into something that is low-medium risks 3/10 (appreciate this likely means lower growth potential). 200 in medium-high maybe 7/10.

Can you suggest any specific funds to look at or a good way of narrowing it down?

StevenGude

It might be worth noting I'm looking at 10 years minimum investment ( currently 27, viewing this as a long term investment to try and get at least part time at 50).