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Critque my savings please!

VFR-Rider
Posts: 119 Forumite
Okay... the title covers it but I'd quite like a 2nd (3rd, 4th, 5th etc!) opinion on if I'm doing the right thing with my savings...
Okay now I'm not going to disclose balances as that could lead to a "mine's bigger than yours" scenario, just a monthly amount so here goes:
Mini cash ISA (Icesave 6.10%) = Maxed 2007 (3600 sitting in current account waiting for April 6th)
Abbey Regular Saver (7.25%) = £250 a month (just opened & 250 is maximum a month)
Halifax Regular Saver (7.00%) = £250 a month (just opened & 250 is maximum a month)
Yorkshire Regular Saver (6.85%) = £500 a month (in process of opening, 500 is maximum a month)
ICICI HiSave (6.15%) = ~£125 a month this is my "anything else" pot.
I am a higher rate tax payer and I'm saving for a house. I think a 2 year lock-in for any finances would be okay... so can anyone see anything I should be doing instead?
Many thanks for any constructive criticism!
Okay now I'm not going to disclose balances as that could lead to a "mine's bigger than yours" scenario, just a monthly amount so here goes:
Mini cash ISA (Icesave 6.10%) = Maxed 2007 (3600 sitting in current account waiting for April 6th)
Abbey Regular Saver (7.25%) = £250 a month (just opened & 250 is maximum a month)
Halifax Regular Saver (7.00%) = £250 a month (just opened & 250 is maximum a month)
Yorkshire Regular Saver (6.85%) = £500 a month (in process of opening, 500 is maximum a month)
ICICI HiSave (6.15%) = ~£125 a month this is my "anything else" pot.
I am a higher rate tax payer and I'm saving for a house. I think a 2 year lock-in for any finances would be okay... so can anyone see anything I should be doing instead?
Many thanks for any constructive criticism!
saving, saving, saving!
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Comments
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Looks good to me... I guess hope house prices drop in the meantime0
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As a high rate tax payer, you might want to consider other tax efficient options such as National Savings bonds. Lock in might be a bit longer than your 2 year horison.
Depending on your attitude to risk you could also go for a stocks and shares ISA but maybe one linked to bonds rather than equities?
In terms of next years ISA allowance you might want to look for a fixed rate? If the economy really is heading for a rough spot, then interest rates are likely to fall fast and a fixed rate will protect your interest earnings.
Leeds have just launched and RPI + 2.5% ISA too if you think inflation will stay persistently high.
Nice bike by the way!
R (also a VFR rider)Smile, it makes people wonder what you have been up to.
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You may be able to transfer cash ISA for a better rate."A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
As a high rate tax payer, you might want to consider other tax efficient options such as National Savings bonds. Lock in might be a bit longer than your 2 year horizon.
NS&I have 3-year and 5-year Index-Linked savings certs which are tax-free. Currently they are paying RPI + 1.35% (equivalent to over 9% before tax for a 40% tax payer).
HOWEVER...the money is not locked away - you can get at it whenever you want. During year 1 no RPI component will be paid if you withdraw. However, during years 2 onwards you WILL get most of your interest paid (the quoted 1.35% on top of RPI is an *average* rate as it is stepped up slightly each year). It's still a great return before the term is up.
e.g. with the 3 year product, if you withdraw during year 2 you will get RPI+1.1% for year 1 and pro-rata RPI+1.3% for every full month beyond your anniversary.
Maximum investment in each issue is £15K (with the 3 year and 5 year products counting as two issues) and NS&I periodically release new issues - IMHO these are much better than regular saver accounts if you can hold for at least a year.
HtH
Reestit MuttonFor anyone wishing to contact me privately to ask me a question, can I ask that you email me directly as my PM box is often full.0
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