How to choose a savings account

Sunbakedscobble

In 3 months time I will be coming to the end of my DMP (Very proud to have paid off 34k of debt)

As I have become used to paying nearly 700 a month to my DMP. I don't want to just blow this money each month once I have finished my DMP.

I have never had a savings account really. I think I might like like to distribute my savings into a few places. Once maybe long term that I cannot touch. Then maybe one that can use for short term savings like holidays etc.

Where do I start?

Thanks

InvesterJones

https://forums.moneysavingexpert.com/discussion/6655583/how-to-choose-a-savings-account

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

wmb194

https://forums.moneysavingexpert.com/discussion/6655583/how-to-choose-a-savings-account

Some combination of instant access accounts and inaccessible fixed rate savings bonds. For the best rates look at regular saver accounts but they have limited maximum monthly deposits. Some are instant access e.g., Lloyds' RS' whilst others are inaccessible or have interest penalties for early withdrawals/closure.

https://moneyfactscompare.co.uk/savings-accounts/

Brie

Well done on the DMP!! Nearly time for your happy dance!!!

Meanwhile - when thinking about a savings account think about what you want to achieve as well as where you are now.

Maybe redo your budget (or SOA as in the link below) and see what life actually looks like now rather than when you DMP started?

Maybe you can loosen your budget belt just a bit and maybe you want to think about what you've given up to get where you are now. Maybe one savings account which will be a holiday fund, another for a newer car, whatever.

Do you have enough pension provision (so more into your work scheme perhaps?), do you have a high enough salary to worry about interest (so open an ISA so the interest is tax free?), does your company have any sort of share save or share purchase schemes? (great way to not have the money go into your own bank account to tempt you into spending)

Sunbakedscobble

https://forums.moneysavingexpert.com/discussion/comment/81886878#Comment_81886878

Great advice, thank you. Some great ideas there. Appreciate it

Yorkie1

The advice is often to have 3 - 6 months' expenditure in accessible savings, so don't put all of your money into inaccessible regular savers or pension.

Bigwheels1111

Great new on your journey and getting to the end.

I have an emergency fund in an easy access isa, I can use the money and replace it throughout the year.

And keep my 20k limit intact.

To get the best out of your money I would opt for a few regular savers.

Principality offer 7.36% on £200 a month, for 6 months.

To max it out you open the account on the last day in the month, deposit £200.

Then add £200 the next day ie the 1st.

You then get £1200 in the account in 5 months and 1 day.

So you get max interest for 59 ish days instead of 30 days.

Reg savers get addicted, I got up to 22, now on 17.

All pay over 5%.

Most not all can be closed in a day or so if desperate for the money.