Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • prodda
    • By prodda 14th Sep 18, 1:24 PM
    • 10Posts
    • 0Thanks
    prodda
    Alternative to cash ISA?
    • #1
    • 14th Sep 18, 1:24 PM
    Alternative to cash ISA? 14th Sep 18 at 1:24 PM
    My son has just started his first job & is able to save about 600 per month. He is considering a cash ISA (about 1.3%) in case he needs access to his money but I was wondering whether there are other alternatives?

    At the moment he has a Santander current account (formerly a student account), his wages are paid to this account & he currently has no standing orders/DD's etc.

    Any thoughts would be much appreciated.
Page 1
    • soulsaver
    • By soulsaver 14th Sep 18, 2:33 PM
    • 1,963 Posts
    • 863 Thanks
    soulsaver
    • #2
    • 14th Sep 18, 2:33 PM
    • #2
    • 14th Sep 18, 2:33 PM
    Doesn't sound like he needs to be in an ISA with the Personal Saving Allowance ( above your post) at 1k - so see Top Savings ACs also above your post and consider hi interest current ac, too.
    • badger09
    • By badger09 14th Sep 18, 2:33 PM
    • 6,210 Posts
    • 5,569 Thanks
    badger09
    • #3
    • 14th Sep 18, 2:33 PM
    • #3
    • 14th Sep 18, 2:33 PM
    My son has just started his first job & is able to save about 600 per month. He is considering a cash ISA (about 1.3%) in case he needs access to his money but I was wondering whether there are other alternatives?

    At the moment he has a Santander current account (formerly a student account), his wages are paid to this account & he currently has no standing orders/DD's etc.

    Any thoughts would be much appreciated.
    Originally posted by prodda
    Current accounts and or regular savers.

    Nationwide Flexdirect 5 % on balance up to 2500 for a year and regular saver 250pm also 5%

    Tesco 3% on 3k
    • MallyGirl
    • By MallyGirl 14th Sep 18, 3:19 PM
    • 2,963 Posts
    • 7,967 Thanks
    MallyGirl
    • #4
    • 14th Sep 18, 3:19 PM
    • #4
    • 14th Sep 18, 3:19 PM
    Santander has a 5% Regular saver account for 250 per month. The Nationwide 5% RS is good as it can run to age 23 rather than kick the money out each year and start again
    • AlexandLauren
    • By AlexandLauren 14th Sep 18, 3:20 PM
    • 90 Posts
    • 56 Thanks
    AlexandLauren
    • #5
    • 14th Sep 18, 3:20 PM
    • #5
    • 14th Sep 18, 3:20 PM
    Depending on when he's looking to buy a house he could even use the help to buy ISA as you get the 25% top up but if its just saving until he has a plan in place of what he wants to do with it then regular savers as mentioned by others
    • kidmugsy
    • By kidmugsy 14th Sep 18, 3:40 PM
    • 11,599 Posts
    • 8,124 Thanks
    kidmugsy
    • #6
    • 14th Sep 18, 3:40 PM
    • #6
    • 14th Sep 18, 3:40 PM
    He should have a look at the LISA. If he hopes to buy a house in the next few years, a cash LISA.

    If his horizon is a lot longer he could consider a S&S LISA. (Though I wouldn't personally. Unless perhaps I took it into my noddle to invest in gold.)
    Free the dunston one next time too.
    • Alexland
    • By Alexland 14th Sep 18, 7:06 PM
    • 3,127 Posts
    • 2,463 Thanks
    Alexland
    • #7
    • 14th Sep 18, 7:06 PM
    • #7
    • 14th Sep 18, 7:06 PM
    He should have a look at the LISA. If he hopes to buy a house in the next few years, a cash LISA.
    Originally posted by kidmugsy
    Yes for the money he will not need easy access to otherwise a withdrawal penalty slightly higher than the bonus would apply.

    Alex
    • FatherAbraham
    • By FatherAbraham 14th Sep 18, 8:35 PM
    • 873 Posts
    • 640 Thanks
    FatherAbraham
    • #8
    • 14th Sep 18, 8:35 PM
    • #8
    • 14th Sep 18, 8:35 PM
    My son has just started his first job & is able to save about 600 per month. He is considering a cash ISA (about 1.3%) in case he needs access to his money but I was wondering whether there are other alternatives?

    At the moment he has a Santander current account (formerly a student account), his wages are paid to this account & he currently has no standing orders/DD's etc.

    Any thoughts would be much appreciated.
    Originally posted by prodda
    An Innovative Finance ISA (IFISA) with a mainstream provider could provide access to better returns in a riskier investment via peer-to-peer lending. He could expect a mid-term return of about 4.5% currently.

    A minimum of a thousand pounds is normally required, in order to diversify over at least a hundred individual loan contracts.

    Withdrawals can usually be made on demand for a fee, so this should be seen as a middle-term investment.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,028Posts Today

8,357Users online

Martin's Twitter