Best financial move

encnew

For around 3 years I've had a lloyds "standard saver" account which I transfer around £300 per month from my deposit account into. The £300 per month is not fixed some times it's less sometimes slightly more. Also any "spare" cash goes into this account.

Also (for many years) Ive had a Santander isa account this account receives a nominal £5 per month direct debit. There's about £1500 in the isa account.

I'm considering, increasing the isa deposits to £200 per month and reducing the lloyds to £100 per month. Also , maybe transfering £5000 lump sum from the lloyds savings account into the isa.

I appreciate the sums involved are not massif but can't help feeling my savings are currently stagnant.

Is this a sound move ? Or would you recommend something else?
Thanks in advance.

Zanderman

You don't mention what interest rates you're getting - but a lloyds 'standard' saver probably doesn't get a great rate and neither do most ISAs.

You might be better looking at better interest rates for both - have a look at https://www.moneysavingexpert.com/savings/ for info

MEM62

You need to differentiate between savings and investments.

Savings = short term and OK to hold in cash
Investments = Longer term (5-years plus) and better suited to S&S.

It is up to you how you balance the two. For me, I 'invest' with no particular plan to touch the sum. I did recently as I gave up my company car and needed to purchase my own vehicle. It was the first withdrawal I had made from my S&S investments since opening my ISA over ten years ago but it was very useful to have the money there to buy a car without having to take out finance.

I 'save' for the more regular larger expenses such as holidays, spending on the house etc. I also keep a float / emergency fund in the savings pot of around six months living costs for unexpected expenditure or changes in circumstances.

You could and probably should increase what you put into your S&S ISA but consider what you are comfortable with. £200 per month is maybe not unreasonable in your circumstances. Bear in also that none of this is cast in stone and you can always adjust / rebalance as your life circumstances change.

Zanderman

MEM62 wrote: »

You need to differentiate between savings and investments.
Savings = short term and OK to hold in cash
Investments = Longer term (5-years plus) and better suited to S&S.
It is up to you how you balance the two. .........
You could and probably should increase what you put into your S&S ISA..............

My interpretation of the OP's post was that they were asking advice about savings, not investments. They don't mention an S&S ISA.

The way the OP is referring to their existing savings arrangements suggest they are not well-versed even in savings options, so I'd suggest they might be very wary of investments.

The OP posted a similar question back in 2014 https://forums.moneysavingexpert.com/discussion/comment/65448779#Comment_65448779 - which also suggests they are looking for advice on savings, not investments

MEM62

Zanderman wrote: »

My interpretation of the OP's post was that they were asking advice about savings, not investments. They don't mention an S&S ISA.

The way the OP is referring to their existing savings arrangements suggest they are not well-versed even in savings options, so I'd suggest they might be very wary of investments.

The OP posted a similar question back in 2014 https://forums.moneysavingexpert.com/discussion/comment/65448779#Comment_65448779 - which also suggests they are looking for advice on savings, not investments

You are quite right. My misinterpretation.

AnotherJoe

encnew wrote: »

For around 3 years I've had a lloyds "standard saver" account which I transfer around £300 per month from my deposit account into. The £300 per month is not fixed some times it's less sometimes slightly more. Also any "spare" cash goes into this account.

Also (for many years) Ive had a Santander isa account this account receives a nominal £5 per month direct debit. There's about £1500 in the isa account.

I'm considering, increasing the isa deposits to £200 per month and reducing the lloyds to £100 per month. Also , maybe transfering £5000 lump sum from the lloyds savings account into the isa.

I appreciate the sums involved are not massif but can't help feeling my savings are currently stagnant.

Is this a sound move ? Or would you recommend something else?
Thanks in advance.

I woudl recommend you save into accounts with higher rate interest than you are likely getting though since you dont say what you are getting now its hard to comment further.

encnew

Zanderman wrote: »

My interpretation of the OP's post was that they were asking advice about savings, not investments. They don't mention an S&S ISA.

The way the OP is referring to their existing savings arrangements suggest they are not well-versed even in savings options, so I'd suggest they might be very wary of investments.

Correct, savings not investment.

encnew

AnotherJoe wrote: »

I woudl recommend you save into accounts with higher rate interest than you are likely getting though since you dont say what you are getting now its hard to comment further.

Well yes, that's what I'm thinking. TBH, I'm not even sure what interest I'm currently getting on the savings and isa account. Will check properly at home.

chockydavid1983

Yes, you definitely need to know what you're getting to know if you can do better :-). It's likely you will be able to though since you generally need to shop around for the best deals, as is the case with everything.

encnew

AnotherJoe wrote: »

I woudl recommend you save into accounts with higher rate interest than you are likely getting though since you dont say what you are getting now its hard to comment further.

So the lloyds savings account and the Santander isa are both 0.2%.