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Best way to save monthly

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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

Comments

  • eskbanker
    eskbanker Posts: 36,944 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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....
  • Albermarle
    Albermarle Posts: 27,719 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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. 
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    What are your plans for your savings?
  • Band7 said:
    What are your plans for your savings?
    Not sure really. I just want to accumulate whilst I'm in the position to save. I have a fairly good public service pension so I don t think that is a priority and my mortgage is reletively low. 
    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).
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
     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 it
  •  :# Back to the drawing board!
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