Best option for a 16 yo

thewizard

OK, so heres the deal. I am 15, and turning 16 in october. I have a fair amount of money saved in a Halifax Save4It Account, and I want to start putting my money away to get the most out of it. I don't want to gamble with the stock market, at least not in the near future because I don't want to end up with no money for when I leave school. I will be staying on for sixth form at the school I am in now, but I will have a part time job.

I also have a current account which I will have a debit card for when I turn 16.

Basically what I want to know is, what is the best thing to do with my money, do I go for an ISA (but I have more than £3,600) or a savings account, or both.


Any ideas...?

Lokolo

Ok if you are only planning on having it until you leave school (for uni? or are you planning on going into work?) then a regular savings account is good enough. Just fill in an R85 form and you will get tax free interest (do you earn under £5430 a year? If not its a different matter, please say!)

Thats basically it, look around for savings account on this site:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts

Any questions keep asking

dwh_3

If you're planning to keep the money for a while (i.e. as savings/money to have after you start earning at least £6000/year), it's probably worth putting it in an ISA before the end of the tax year (April), because then any interest you earn on it won't ever be taxed (unless the law changes).

thewizard

thanks Lokolo and dwh, I don't earn more that £5430 a year yet, but I may do in the future.

I was thinking, if I put £3600 in an ISA before April 5th, ive got it in the ISA then with the money in it. So when I do finish uni, and I can no longer escape paying interest with an R85 form I have the money in the ISA.

Because I would end up with more than £3600 in an ISA by then so I would be getting tax free interest on may £10,000 at around 20. (If all goes to plan).

I hope that makes sense, and please correct me if I'm wrong

Energize

Don't forget about the student loan money/grants/bursaries/scholarships you will recieve for university.

bradc

After the Save4It their other accounts seem pretty poor

What other accounts are there? I was looking at the Nationwide accounts.

Thanks,

Lokolo

5.27% isn't that great. there are others which are higher than this.

How much do you have to save?

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#topaccounts

theres a list, choose, make sure you fill in an R85 form and you will get tax free interest.

Lennys_Shinpad

thewizard wrote: »

OK, so heres the deal. I am 15, and turning 16 in october. I have a fair amount of money saved in a Halifax Save4It Account, and I want to start putting my money away to get the most out of it. I don't want to gamble with the stock market, at least not in the near future because I don't want to end up with no money for when I leave school. I will be staying on for sixth form at the school I am in now, but I will have a part time job.

I also have a current account which I will have a debit card for when I turn 16.

Basically what I want to know is, what is the best thing to do with my money, do I go for an ISA (but I have more than £3,600) or a savings account, or both.


Any ideas...?

Oh my word, I am very impressed with your financial maturity. When I was 15 I was spending all my paper-round money on football betting and Hooch. Well done you.

Once you've made your decision, put the money away, forget about it and concentrate on having a good time!

bradc

5.27% isn't great I know but there seems little other choice until I reach 18. Any ideas? I have checked on websites such as moneysupermarket.com but Nationwide seems the best for me at the moment.

thewizard

bradc wrote: »

5.27% isn't great I know but there seems little other choice until I reach 18. Any ideas? I have checkout on websites such as moneysupermarket.com but Nationwide seems the best.

A cash ISA would get you a higher interested rate than that

The Barclays Tax Haven Cash ISA would give you 6.25% for the first year and around 6.08% after that