Making the most of savings

crystal101

Hello,

I’m very excited for the upcoming year - am debt free (except for the mortgage) for the first time and am now able to start really saving. I have a few hundred aside already, but have calculated I should be able to put aside a few thousand a year. It is currently going into a Lloyd’s ISA which is doing nothing - what’s the best way to make the most of savings? I heard about a Santander account which offers 1.5% but I would need to put my whole salary in there and I want to leave my salary in my LLoyds account and just move my savings to another account if possible!

Thanks

xylophone

There is no reason why you should not have more than one current account.

With regard to the Santander account, there is a pay in requirement but this does not mean that your salary has to be paid into it.

There is a fee for the account which, (unless you receive cashback), means that you do not end up with 1.5%.

https://www.santander.co.uk/personal/current-accounts/123-current-account

Savings rates

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Had you considered a stocks and shares ISA for the long term?

Example
https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/

NedS

If you are claiming either Tax Credits or Universal Credit, don't forget the Government's Help to Save scheme:

https://www.gov.uk/get-help-savings-low-income

You can save up to £50 per month, and after 2 years the government will give you a 50% bonus based on the highest balance you've saved, so if you save £50 per month for 2 years you'll have saved £1200 and the government will give you a £600 bonus. You can then repeat for a further 2 years. Better than the 1.5-2% available on the high street.