New to savings - the best way to save?

kindanice

Hi all,
We are just about to clear the last of our debts, and will soon be able to save about £800 to £1000.00 per month.

What would be the best way to save this money?

I work part-time but I am under the tax bracket and my partner works full time, self employed.

Should we get an ISA in joint names (if so, what is the limit we can put in together) or should my partner get one in his name and then once we have used up that allowance, put the money in a regular savings account?

Is there an account which pays interest monthly, and then the following month you get interest on your total balance? Had a look at Whatsthecost.com, and it seems to work out the interest monthly and then gives you interest on your balance & interest the next month - is this right?

New to all this savings business and we want to get it right!

Hope all this makes sense. Your advice much appreciated!

grumbler

kindanice wrote:

I work part-time but I am under the tax bracket and my partner works full time, self employed.

Only if you are going to became a taxpayer in the future it is worth opening ISA on your name

Should we get an ISA in joint names (if so, what is the limit we can put in together) or should my partner get one in his name and then once we have used up that allowance, put the money in a regular savings account?

There is no such a thing as joint ISA. Currently every UK resident has £3000 yearly allowance for cash-ISA. Read about 'saving fountain' in 'Starting Saving ' guide. Read other articles in 'SAVINGS' section.

ALL ARTICLES

Is there an account which pays interest monthly, and then the following month you get interest on your total balance? Had a look at Whatsthecost.com, and it seems to work out the interest monthly and then gives you interest on your balance & interest the next month - is this right?

There is no difference for you between monthly and yearly interest.
The only difference is psychological (or emotional) one.
Don't hesitate to ask more specific questions after reading the above articles :wave:

jimclark1967

kindanice wrote:

Hi all,
We are just about to clear the last of our debts, and will soon be able to save about £800 to £1000.00 per month.

Well done on clearing debts - have a drink on me :beer:

JC

kindanice

Thank you very much for your replies: Grumbler - that really helps. Didn't realise how little I knew about saving!

:beer: