I will soon actually have £ to save - any suggestions?

Princess_Jane

Hello,

in three month's time my CC will be paid off and I will be about £200 a month better off.

I'd like to save around £100-£150 a month, with the extra £50 used to give me a little bit room to breathe, as I am on a super-tight budget at present.

I have an Instant Acesss ISA with Nationwide, which I currently use to save £30 a month for Christmas, meaning I lose out on interest every year, which is stupid, so I'm looking for some ideas.

I also have a savings account with ICICI, but I have lost my password, and every time I ring up to get a new one sent out, they say OK, and don't send it, so I am worried if I pay any money in there I won't be able to access it.

Any suggestions? I don't mind not being able to access some of the money quickly if I can split my savings between a 'Christmas' account and a 'savings' account.

Jane

slowlyfading

What I'd do, is put the £100-150 a month in an ISA and get a seperate savings account for the christmas savings. That way, you have more chance of getting the interest in the ISA, and can get to your christmas savings when you need them.

Princess_Jane

thanks.

Can I open an ISA if I already have one?

I know it is best to transfer money between the two, rather than withdraw and re-deposit it.

I was in the PO today sending off some ebay items and noticed they now have an Christmas Club.

Can anyone recommend it?

kipwilliams

hi Jane - is there any chance you will increase the amount(s) you save significantly?

If you won't be saving more than £300 a month in total and you have the self discipline not to draw out more than you should then just put it all in the ISA and draw your christmas money out at christmas. If you can't max the ISA with 'permanent' money then you don't lose anything at all, and you might as well make tax free interest on the christmas money while you have it.

hope that makes sense?

Princess_Jane

Nope, that is my max available.

My wages aren't great and even with no debts I couldn't spare any more, unless I cut out eating and move into a box, LOL.

kipwilliams

so stick it *all* in the isa then, and draw out what you need for xmas. you can't lose your entitlement if you can't use it