Mortgage Free - What to do with £1250 monthly savings ?

Nitrous

Hi All,

I'm newly mortgage free & it feels fantastic !! :rotfl:

Now I need to decide what to do with my £1250 monthly mortgage payments, obviously I want to save the best way possible, I was thinking of:

Opening an ISA for me & my wife taking care of £7,200 in cash maybe another £7200 in shares (is this safe? my dealing with shares so far have been rubbish !!)

Then I was going to look for the best paying savings account:

Kaupthing Edge Savings
6.50% / 6.31% Variable Rate £1,000 / £1,000,000 Monthly None

The first £7,500 I want to use for home improvements then I want to save hard, trying to bag the FULL £15,000 a yr, what would the best way be to save & make my money work for me safely.

Could I make use of my 3 yr old sons savings accounts ?

Advice appreciated...

Kind Regards

Nitrous

dunstonh

maybe another £7200 in shares (is this safe? my dealing with shares so far have been rubbish !!)

Rubbish as in worse than the sector average or index or are you just looking over a short period when there has been a decline? Remember that the stocks and shares ISA allowance doesnt require you to invest in stocks and shares. There are other assets you can place in there as well.

You need to decide what you are investing/saving for. If long term, such as retirement, then stocks and share ISAs and pensions could come into play. If short term, then cash ISAs. Probably a bit of everything at the end of the day.

debbie42

Nitrous wrote: »

Could I make use of my 3 yr old sons savings accounts ?

You can save money for your child, but any interest above £100 per year (on gifts from each parent) is taxed as if it was the parent's.

[Deleted User]

Nitrous wrote: »

Opening an ISA for me & my wife taking care of £7,200 in cash

- The Bradford & Bingley 1 Year Fixed Rate cash ISA at 6.25% AER looks good. No need to worry the rate might drop in a few months time.
http://www.bradford-bingley.co.uk/sa...ISA-issue4.asp

Nitrous wrote: »

Then I was going to look for the best paying savings account:

Kaupthing Edge Savings
6.50% / 6.31% Variable Rate £1,000 / £1,000,000 Monthly None

- Again this looks good, guaranteed at least 0.30% (gross) higher than BoE rate until 01/02/2012. You will need to have a minimum of £1000 in the account though to get this rate.

Nitrous wrote: »

Could I make use of my 3 yr old sons savings accounts ?

- Take a look at some of the threads here:

http://forums.moneysavingexpert.com/search.html?searchid=27087681

- You might want to investigate short term fixed rate bonds, for example:

Icesave 7.01% AER, 1 Year Bond, min £1,000 deposit - meaning the money is tied up for 1 year in this bond but you're guaranteed 7.01%AER.

http://www.icesave.co.uk/fixed-rate-savings.html

- Finally you may like to investigate Index-linked Savings Certificates:

http://www.nsandi.com/products/ilsc/index.jsp

Nitrous

Thanks for all your advice people, some great info !!

I have 6 months of saving for my new kitchen & then I will be hard saving. I think I will do a mixture of savings, I'm mainly looking at a the long term term investment.

Again, many thanks for all your help !!

Kind Regards,
Nitrous.