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Best way to save monthly
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joesmith111
Posts: 3 Newbie

Hi all,
I have found myself in a position where for the next 2/3 years I am able to save around 2k per month.
I'm starting from zero, so I was hoping for some advice on how best to save these funds. Was thinking of using a high interest regular saver account for the first year than transferring to a cash ISA year 2 onwards?
Other than a mortgage, I have no debts.
Cheers
I have found myself in a position where for the next 2/3 years I am able to save around 2k per month.
I'm starting from zero, so I was hoping for some advice on how best to save these funds. Was thinking of using a high interest regular saver account for the first year than transferring to a cash ISA year 2 onwards?
Other than a mortgage, I have no debts.
Cheers
0
Comments
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You'd need to use multiple regular saver accounts for £2K/month but these are likely to be best, for the first year at least. In a year's time you can review what best to do with the ~£25K, which may involve up to £20K into a cash ISA but much will depend on what your ultimate plans are for the money, as you do have alternative options, such as paying off some of the mortgage, or investing either within a pension or standalone....1
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In the short term it is sensible to build up some cash savings, but once these reach a certain level, you should then consider whether to start investing the £2k a month. Often adding more to your pension ( if you have one and depending on the type) is a good idea. Or using a Stocks and shares ISA, if you are unlikely to need the money for some years.
Or as suggested overpaying the mortgage is another option. Often it is a good idea to do a bit of everything.1 -
What are your plans for your savings?1
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Band7 said:What are your plans for your savings?
The dream would be to invest in something that gives me passive income, but for next 2/3 it would just be a case of saving (working abroad).0 -
As you have now casually remarked that you are working abroad, this brings an entirely new dimension to it. It most likely eliminates ISAs of any sort, as you are not allowed to contribute whilst abroad unless you are on Government business. You will also find it difficult to open other UK accounts whilst abroad, and some providers require you to close your accounts if you are not resident in the UK.
You might do best looking into offshore accounts. All the larger UK banks offer them, and Skipton Building Society have some nice offshore accounts, too.
You need to also look into the tax rules of your country of residence. Even if you have an existing ISA, they might tax you on it2 -
Back to the drawing board!
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