Best way to save/invest money?

chez000

Hi,
Ive recently stopped smoking and as a result have a spare £140 or so per month, Ive done some reading around savings accounts, ISAs etc but am still a bit confused.

Id appreciate any suggestions/advice anyone has on how to make the most from this amount of money. I do pay lower rate tax if it makes a difference

debbie42

Well done!

What are you planning to do with the savings? This may make a difference as to how you save/invest.

If you haven't used your cash ISA allowance yet for this year then this is a good place to put up to your max (£3600). Even as a lower rate tax payer, it will save you 20% tax on your interest (unless you'd pay less than this).

[Deleted User]

Agreed with debbie42.

Generally ISA's are a good place to start:

http://www.moneysavingexpert.com/sav...gs-without-tax
and http://forums.moneysavingexpert.com/....html?t=401374

chez000

debbie42 wrote: »

Well done!

What are you planning to do with the savings? This may make a difference as to how you save/invest.

If you haven't used your cash ISA allowance yet for this year then this is a good place to put up to your max (£3600). Even as a lower rate tax payer, it will save you 20% tax on your interest (unless you'd pay less than this).

Thanks for you reply.

Ive not put any money in an ISA ever,
Im not sure what i plan to do with the savings, just dont want to end up squandering it

whu

- congratulations-i agree with the idea of an ISA - its a good way to build up tax free savings over a period of time - if you want instant access you could look at high interest savings accounts like Kaupthing Edge

LucyTheDwarf

Well done on kicking the habit! (Have you got any tips? My boyfriend is trying...)

HSBC's cash e-ISA has a rate of 6.25% at the moment. However, I've an awful feeling it's only open to current account holders... but if you do happen to have a current account with HSBC, I think that's market leading.

Or Barclays tax haven ISA has this rate also, but that includes a 1% bonus... heard lots of bad feedback on that though, in that it takes a LONG time to open - I think they've been rather swamped with applications. You don't need to be an existing customer to open this though.

dunstonh

The above cover savings options. What about investments?

What are you plans for this money? How long will you be looking to leave it?