£800 to invest

unknown_786

i have saved up around £800..i know its a small amount...but im a student...and for me its a lot :P and im proud!!

anyway, any advice about the best way to invest this would be much appreciated!!! Im thinkinh perhaps a high interest savings account?

Unknown

jo_b_2

An ISA is usually your best bet before looking at any other types of savings account. Interest is paid gross on ISAs (although that might not be such an issue for you as a student if you don't pay tax at the minute.)

The other high rate instant access savings account include ING Direct (5%) and Cahoot (5.05%). Both offer very good online banking facilities if that is useful for you.

Hope that has given you somewhere to start.

*Edit: and well done for saving £800! There are lots of people on here that would be very pleased to have that much in savings, especially as a student!

unknown_786

jo_b wrote:

An ISA is usually your best bet before looking at any other types of savings account. Interest is paid gross on ISAs (although that might not be such an issue for you as a student if you don't pay tax at the minute.)

The other high rate instant access savings account include ING Direct (5%) and Cahoot (5.05%). Both offer very good online banking facilities if that is useful for you.

Hope that has given you somewhere to start.

*Edit: and well done for saving £800! There are lots of people on here that would be very pleased to have that much in savings, especially as a student!

Excuse my ignorance...but what exactly is an ISA? and are ING Direct and Cahoot fairly reputable banks?

Ember999

An ISA is a INDIVIDUAL SAVINGS ACCOUNT, an a/c which you pay no tax on the interest you earn. In a mini cash ISA you can save up to £3,000 per year currently. The reason it would be best for you to save in an ISA is because you will pay no tax on the interest. However, if as a student you pay no tax anyway, if you are not working or earning below the tax threshold, saving with ING would not lose you money. I save with ING as I like the monthly interest feature and also the online servicing of the account. But I think most on here, myself included would say get yourself an ISA and stick that £800 in to it.

By the way, well done on saving £800....wish I'd had that saved at your age

grumbler

What bank do you have account with? Many banks have their own good saving accounts...

unknown_786

grumbler wrote:

What bank do you have account with? Many banks have their own good saving accounts...

i currently have a hsbc student account....

by the way....before even more people congratulate me...i am actually almost £600 into my overdraft..and the money i have saved is separate....although i could jus pay off my overdraft (which is interest free) i thought perhaps it would be wise to try and increase my savings......so sorry...im just like other students..and do not deserve all the "well dones"

Ember999

It's still a well done! Don't beat yourself up about the overdraft, just devise a plan to pay it off as easily and quickly as you can. As it is interest free, I would suggest you still leave your savings where they are as they are earning interest, and try to pay off your overdraft seperately. I feel having a little in savings is good for the moral and when you have paid off your overdraft, you will have your savings to make you smile.

Ember

grumbler

unknown_786 wrote:

i currently have a hsbc student account...(

Yes, HSBC is not a good bank to save with. They have Online Saver with decent 4.7%, but you lose monthly interest on whole balance every month you withdraw some money ...