mamoon2

Can any financial experts shed some light on which way to save my money.

I am currently saving £200 per week into my regular RBS savings account.

But i want to get maximum interest, however i've noticed that the 10% accounts have a £250 per month cap on them, which is no good for me as i'm saving between 800 and 1000 per month.

I am saving for a house by the way, so want a high interest saving account with interest paid monthly. As i may not be saving for a year, so annual paying accounts are no ggod to me.

Can anyone help me, any ideas what to do with my money?

Thanks

Mamoon

kingofturds

iTrader: (1)

Paypal it to kotsholidayhomefund@sucker.net and at the end of 12 months you will have a pleasant suprise

Fuzz

YES,

Keep it under the bed and don't tell the thieving tax man.






I'll get my coat

Andy

Chip Sengravy

KOT, how many scoobycrews/clubs are you in? I thought you were a cornish?

kingofturds

iTrader: (1)

I am a cornish am in southwestscoobies ssw and a certian honda forum

mamoon2

C'mon guys, serious answers needed. Don't muppetise!!

I won't earn interest if i keep it under my bed will i!!!!!

Butkus

The best thing to do is go to FT.com to the 'Your Money' section. Click on 'Savings Accounts'. That will list all the options for you depending on how long you wish to deposit the money, what notice period you're willing to give etc.

Remember to use up your ISA allowance first too, as this is tax free. Then put the rest into the highest return account you can find above. It looks like the instant access accounts range from 4.55% to 5.15% gross. Knock off 20% tax, or 40% if you're higher rate.

Good luck with the house :-)

Petem95

Well you might as well fill the 10% account with the £250/month limit, then anything after that put into a cash ISA (£3k max per tax year) - you should be able to get over 5% or more on this (Bradford and Bingley paying 5%), then once the ISA is full put the money into a high interest savings account. Again Bradford and Bingley do a good one paying 4.85% (with instant access, no fees to withdraw, and thats not an introductory rate either).

To see what accounts are best at the time, check moneyfacts.co.uk.

Fixed rate savings accounts are another option if you want a slightly higher return, but remember rates are soon to be heading upwards, so these might not be such a good move at the moment.

Hope that helps!

Mungo

I'm using Bradford & Bingley eSavings - paying about 4.85% which is pretty good considering BoE base rate is 4.75%. Might be other accounts paying slightly more, but usually that is a 3-month starter bonus (might be worthwhile if you can be bothered to keep moving the cash around).

mamoon2

Will i have to pay tax on my savings? Someone mentioned 20%

So that means they will take £2000 of my intended save of £10,000?

I will look into ISA's!

406dude

only on the interest

Petem95

You only pay tax on the interest! 22% if you are a lower rate tax payer.

So putting £10k into B&B's 4.85% account for a year would earn £485 interest, but you would pay tax on that interest, so get £378.30

Chip

Take a risk and buy shares. I did and now dont have a mortgage at all.

Chip

TopBanana

Financial wizardry at its best!

Tim-Grove

I’m in the same position as you. I’m saving about £1K a month (managed to save 1300 last month) to move out and it’s just sitting in my bank account at the moment. I need an account that will let me withdraw money at short notice and doesn’t pay interest annually as it won’t be in there for more than a year.

Chip

Do you have a mortgage?

Comes down to how much of a risk your prepare to take though doesnt it.
Why not invest in blue chip high yielding shares which can pay out about 7-8% with a smaller risk of rises or falls in the share price. More of a long term investment though than 12 months as divs only paid twice yearly.


Saving for a house is usually just not viable as house inflation most years far outstrips bank/building society interest rates so most savers will end up at square one when buying the property.

TopBanana

Nope, nor dor I have a gambling habit

Chip

Still live with your Mum then do you

The people who invested in Equitable Life didnt have a gambling habit either

Chip

TopBanana

Anyone who invests a large enough amount in any one company is taking a very large gamble indeed.

Chip

Very true though I suppose people do trust the banks and building societies more than most.

Chip