£100+ a month - What shall I do?

MoonCake_2

Hi Financial Whizzkids!

Hope some of you have some good advice for me!

Due to a recent payrise I have a bit of spare cash left over every month and want to make a conscience effort to save some of it. Ideally, I would like to use £100 a month ish but could push to more and I would quite like to pay this into something I cannot get at too easily.

I am not a fan of premium bonds and a standard savings accounts would be all too easy for me to get at.

I would like as good a return on my money as possible though and would rather take this over the not being able to get at it part! (if that makes sense!)

I am thinking along the lines of something I can pay into once a month and then take the lump out after 3, 4 or 5 years. Does this all make sense and does anyone have any suggestions?

Thanks in advance

MoonCake
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Mikeyorks

Either an 'easy access' ISA .... or put it in a Regular Saver and then cut it across to an ISA each year. With that profile of money ... I'd tend to go for the latter solution.

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Fedz

Most regular saving accounts allow £250 max per month usually by standing order.

If you get paid into a current account with little or no interest, move the money into a savings account and have standing order move the £100 per month from that as opposed to having it sat in a current account earning nothing before it moves.

Most you can also add/top-up to £250 per month so if you put £100 per month in you have £150 available which can be done by transfer between accounts (if you're flush at anytime)

I get paid weekly so I move the regular savings amount into the savings account and have the SO to transfer from that to the regular saver so I aren't loosing as much as I could be if left in the current account.

Always better to exhaust/max out any ISA account first though as this is tax free and the regular savings account is good as a secondary as they're taxable

Hope this helps

MoonCake_2

Thanks for your comments - I will look into your suggestions.

MoonCake
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