2k Savings - What to do?

Darren0410

Ok so basically I have managed to save 2k so far and have it sat in my savings account with Barclays. Its not a special savings account or anything, its just the one attached to my current account.

My Question is what to do with this 2k to make it work for me. I have zero idea about anything like savings or investments etc so I do not want to risk/lose my money.

eskbanker

https://www.moneysavingexpert.com/savings/which-saving-account/
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

yksi

If this the only "readily accessible" money you have, make sure it's not tied up so that you can get hold of it in case of emergency. People often recommend that you have 3-6 months' worth of living expenses in their emergency buffer.

Retireby40

Not enough to start worrying about investing etc. You should always have 6 months minimum buffer in your account for if you lose your job or something strange happens. I would work towards 12 months just because I prefer to be prepared for the worst.

You would find it difficult enough to get an easy access savings account paying 1%. 1% of your £2000 is £20 a year. It makes absolutely no difference to your life whatsoever. 

My advice is just keep saving away in your current account and maybe look towards options that may help you get in the property ladder down the line.

Look into ways you can cut costs like meal prepping and cheaper alternatives which will in turn help you save more money in the long run. Tiny adjustments can go a lot further than some magic bank account.

grumiofoundation

Darren0410 said:

Ok so basically I have managed to save 2k so far and have it sat in my savings account with Barclays. Its not a special savings account or anything, its just the one attached to my current account.

My Question is what to do with this 2k to make it work for me. I have zero idea about anything like savings or investments etc so I do not want to risk/lose my money.

You can get 2%on £1000 with a virgin money current account (also some free wine).
https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/#virginswitch

More switching bonuses are likely to come around at some point in the future - take advantage of as many as you can.

As a side note - it is always a good idea to have more than 1 current account with accessible money in case one is inaccessible for any reason.

Generally you can get slightly better savings rates on regular savings accounts, but this often comes at a price of you not being able to access the only which may not be suitable.

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#banklinkedtable

JMLP

I've just found a way - without tying up £1500.  I have a Nationwide account in my own name which pays 0.25% on £1500.  I could effectively open a joint account (for instance - with my daughter) and get 2% for 1 year - dropping to 0.25% after.  I can only hope that in 1 years time the interest rates for savings improve.  I've looked at cash ISA's etc with fixed terms but none are paying 2% so this is my best option.  It will take some juggling as I already have a single account.  It requires £1000 to be paid in monthly and NOT from a Nationwide account.  I have another bank account that my wages are paid into.  So with the faster payments system I could transfer £1000 into the joint account on pay day (last day of the month) - transfer it back to my salary account - and then transfer it in to my single named account.  I fulfil the criteria and earn interest on up to £1500 in both accounts. One account admittedly is at 0.25% but the other one is at 2%.  

JMLP

PS - this interest is paid monthly. So you don't have to wait all year for your £30!

Mysterz

You might want to look at drip feeding it in to a regular savings account deal?

Brewer20

I don't quite get the T&C's with applying for this Flexdirect account. It says you cannot open another account using the same name(s) if you've previously had the Flexdirect account and had the 2% with that. So what does that mean, change your name on the application before applying, surely not?

JMLP

If you are able to be disciplined and save that much - you could also look at drip feeding into a year long savings account and adding the regular savings to a current account keep your £1500 at the same time.  The reason I was looking at good savings accounts for £2000 was because one of my regular savers just came to an end.
I was rubbish at finances and this site has made me so much better! I now own my own flat and have savings!  Something I never thought was possible 2 years ago. It does take time but it's such a good feeling to see some money in the bank!  Instead of an overdraft charge!
You could chuck that money at a pension too!  If you have a NEST pension scheme and don't want to access that cash - let it work for you on at least the rate of inflation.  But if you want easy access - I think bank/building society accounts are the best option at the moment.  Just be careful in case you have to set up direct debits or switch as part of their criteria.  Nationwide don't require that.  Good luck.

JMLP

You can open another 'joint' account with you as one of the joint account holders - but not another single account.