Savings help- To gain interest or not?
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sophieo16
Posts: 191 Forumite
Hi,
I going around in circles slightly with what to do with a small amount of savings that I've managed to stock pile over the last year or so.
Brief explanation: I currently have £5800 of £6000 saved that I plan to spend on a car. I have 12 months insurance left on my current car (expires 2nd July 2019), so will possibly need this money when that comes to an end (unless I decide to keep my current car if it passes an MOT and is still working for me practically). My car is a 51 reg clio, 92000 miles, no major niggles. Im a climber so i dont need a fancy car. Just something that holds a number of smelly climbers, a dog and a few bouldering pads and rock climbing gear, so along as it runs i'm happy.
The money is currently in an account earning 0.20% interest (A travesty) but is easy to hand if something drastic happens to my car and i need to purchase another quite quickly...which is preventing me from investing for 12 months.
I've been looking at accounts like the Atom 6 month fixed account (1.80% APR) but you only get interest on what you put in, no more deposits allowed etc.
Another option is to add to my Zopa account but its not as easy to get to if i need to act quickly.
My financial situation overall:
- no credit cards
- No mortgage (I rent)
- £1000 emergency fund
- 3-6 month emergency fund (circa £3k)
- Saving for a house after the £6k is there for a car.
Do i add all to Zopa for 6 months? Do I leave the money where it is? Do i look to another route? I begrudge it sitting there earning nothing, I begrudge it only earning £52 in 6 months with Atom..... I don't want to have to use emergency savings if i can't get to car savings...
Any advice would be appreciated.
:beer:
I going around in circles slightly with what to do with a small amount of savings that I've managed to stock pile over the last year or so.
Brief explanation: I currently have £5800 of £6000 saved that I plan to spend on a car. I have 12 months insurance left on my current car (expires 2nd July 2019), so will possibly need this money when that comes to an end (unless I decide to keep my current car if it passes an MOT and is still working for me practically). My car is a 51 reg clio, 92000 miles, no major niggles. Im a climber so i dont need a fancy car. Just something that holds a number of smelly climbers, a dog and a few bouldering pads and rock climbing gear, so along as it runs i'm happy.
The money is currently in an account earning 0.20% interest (A travesty) but is easy to hand if something drastic happens to my car and i need to purchase another quite quickly...which is preventing me from investing for 12 months.
I've been looking at accounts like the Atom 6 month fixed account (1.80% APR) but you only get interest on what you put in, no more deposits allowed etc.
Another option is to add to my Zopa account but its not as easy to get to if i need to act quickly.
My financial situation overall:
- no credit cards
- No mortgage (I rent)
- £1000 emergency fund
- 3-6 month emergency fund (circa £3k)
- Saving for a house after the £6k is there for a car.
Do i add all to Zopa for 6 months? Do I leave the money where it is? Do i look to another route? I begrudge it sitting there earning nothing, I begrudge it only earning £52 in 6 months with Atom..... I don't want to have to use emergency savings if i can't get to car savings...
Any advice would be appreciated.
:beer:
Mortgage Feb 2023- £249,210 MFW 2023 #20: £524.05/£500 (104.81%)
0
Comments
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Have you ever had a Nationwide Flexdirect current account?
If not, you might open one and get 5% on £2500 for a year.
You might open a TSB Plus current account and get 5% on £1500.
If you have 3DDs you might open a Tesco current account and get 3% on up to £3000.
The monthly inputs can be managed by faster payment/same day Standing Orders.
Check terms and conditions.0 -
Have you ever had a Nationwide Flexdirect current account?
If not, you might open one and get 5% on £2500 for a year.
You might open a TSB Plus current account and get 5% on £1500.
If you have 3DDs you might open a Tesco current account and get 3% on up to £3000.
The monthly inputs can be managed by faster payment/same day Standing Orders.
Check terms and conditions.
Ive had both the Nationwide & TSB current account (and still do) so ive used those advantages. Due to the fact I rent with a house mate I have all direct debits coming out of 1 single individual current account that is completely seperate to all other accounts of mine (minus me running my wage through it to get the £3 reward a month for us as a buffer).
Ive tried to do the above again using different banks and their offerings but there doesnt seem to be the same advantage this time around
Ive just opened a First Direct account for the free gift that I plan to eBay/ sell to a family member but minus that, due to the direct debit situation im stumped for interest options. Im not willing with a flatmate to have direct debits coming from left, right and centre. I dont want it going on my credit record that Ive missed payments because something wasn't paid to a correct account
.. ive had missed payments before and ive been left too foot the charge. Mortgage Feb 2023- £249,210 MFW 2023 #20: £524.05/£500 (104.81%)0 -
Not entirely sure what you mean about having 12 months insurance left on your car and needing the money when that comes to an end. If you replace your car you just tell your insurer the new details and they transfer cover to your new car - subject to any change in premium for the type of car you have bought.
If the high-interest current accounts are off the list, there are plenty of easy-access accounts paying around 1.2% - 1.3% and some notice accounts paying around 1.66% (Paragon). See the 'Banking and Saving' tab at the top of this page. You could even stick the cash into an easy-access saver at 1.3% and recycle it monthly at £250 a time into an easy-access regular saver (such as Virgin - 2.25%).
Fingers crossed your Clio keeps going and you don't have to replace it - cars are a money pit.0 -
Terry_Towelling wrote: »Not entirely sure what you mean about having 12 months insurance left on your car and needing the money when that comes to an end. If you replace your car you just tell your insurer the new details and they transfer cover to your new car - subject to any change in premium for the type of car you have bought.
If the high-interest current accounts are off the list, there are plenty of easy-access accounts paying around 1.2% - 1.3% and some notice accounts paying around 1.66% (Paragon). See the 'Banking and Saving' tab at the top of this page. You could even stick the cash into an easy-access saver at 1.3% and recycle it monthly at £250 a time into an easy-access regular saver (such as Virgin - 2.25%).
Fingers crossed your Clio keeps going and you don't have to replace it - cars are a money pit.
Sorry, I should have been more clear. I have paid for a years worth of insurance with my current car which expires july 2019. If something happens with my car before that and i choose to get another then the insurance can be moved over...but its whether i need the money at hand instantly to get another.. currently my dad is the named driver on my car, whereas when a new car comes along i'm just going to be on my insurance alone so that will effect it slightly.
In all honesty my car is a really good runner. mostly driven long distance at weekends as I walk the 3 miles to work everyday, if I can as its not too far at all.
your last suggestion could possibly be a go-er, ill look into it thanks for the suggestion. Mortgage Feb 2023- £249,210 MFW 2023 #20: £524.05/£500 (104.81%)0
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