View Full Version : Saving Monies
I'm considering opening a savings account to put some money away for a car. Now that I'm working, I need to put my money to use and buy my first car!
I think realistically I'd be able to put about £500 a month into it from my expenses. That'll keep from being frivolous (I was considering a macbook pro before the savings account!). And it needs to be one that doesn't have too many restrictions, like not being able to take the money out for x amount of time.
I've only ever had a current account, but I was hoping you guys might offer some advice on the best bank/building society or whoever to give my money to for a few months until I've got myself enough for a motor (then I can start a motors thread for help on that one!!). ta.
http://www.moneysupermarket.com/savings/
^^ pretty much. I still use moneysavingsexpert.com
I would suggest setting up a couple of monthly savers that will drop in a fixed amount in making it painless each month. Even easier with online accounts.
If you haven't already gotten one you can stick £5.1k into an cash ISA and get the interest tax free. If you are look for a car in say 10 months for £5k that's (imho) the best rate.
If you already have paid into one this year then monthly savers normally give the best rates. Nationwide's is 2% after tax if you put in £500-£1000 per month but it drops drastically if you miss a month or empty if of course.
I use the same site as Zirax suggested sometimes, as it suggests though just be careful. While you can get 4, 5 even 8% deals they can be really restrictive in what they let you do.
I'd personally also go for something UK based, or at least check it's covered by the UK £50k guarantee, don't want to stick it in an icelandic account!
If you are earning I'd also suggest getting some basic sort of e-savings account with your bank. I only ever keep a smallish float in my main account, the rest I put into e-savings. Even if it's only a little, and getting maybe 1% in the current rates is better than the 0.1% you get from regular accounts. Online means it transfers instantly between your own accounts (normally afaik).
Yeah i've been looking at moneysavingexpert. I've had a look at the Tesco online saver & egg one that they have listed.
I'll have to have a look at ISAs, don't really know anything about them.
I've not currently got money anywhere other than my HSBC graduate account (although I am trying to switch to a Natwest account following application to them last weekend), as I have to make sure I get that overdraft from my student years paid off.
I'll checkout MoneySupermarket, never used that. thanks.
Blighter
04-07-2010, 23:19
The two things I've done to save money (which are working) are:
- Cut any non essential re-accuring monthly outgoings
- Pay all your bills/services/etc when you get paid, then draw out a budget in cash, and just use that cash for anything you buy.
Personally I have historically just pee'd all my spare cash up the wall on expensive meals and non-essentials. I find that by using cash instead of card it makes things a lot easier to budget as you physically see what you are spending.
edit: Sorry, completely misunderstood your original post :( ;D
Egg are good enough if you keep the account in use. They don't like it much if you don't.
That said, my Egg savings account is dormant and they haven't complained yet, but then my Egg credit card isn't.
I'm still spending too much money, but not like it's going out of fashion any more. Only debts I've got left are the mortgage and rather expensive holiday from earlier this year (which I have savings to cover when the interest-free runs out).
Think I'll copy Blighter and use a budget account. Had one set up for ages but never used it properly. £700 worth of furniture this month won't help matters. ;D
If you don't need to access your money for a while consider a bond for a year or longer because you get better rates. The caveat is you can't withdraw your money during that time, so if you think you might want it for a car or house deposit then you can't have it.
Watch out for a lot of the interest deals on instant access accounts. They are convenient with a slightly lower interest rate but if you withdraw money they sometimes don't give you any interest for that month or you might sacrifice the whole year interest as a penalty. My money is locked up in one and I can't withdraw it yet, even though I could do with a few K out of it for a significant purchase. I've got to wait or I'll lose the already pathetic amount of interest I am going to get. Look for one with unlimited withdrawals if you think you might need it.
Yeah I want to avoid locking it up. I was looking around & there are a few that offer unlimited instant access with no penalties.
The trouble as far as I could see was the requirement to have an account with the various companies already :(
Yeah i've been looking at moneysavingexpert. I've had a look at the Tesco online saver & egg one that they have listed.
I'll have to have a look at ISAs, don't really know anything about them.
I've not currently got money anywhere other than my HSBC graduate account (although I am trying to switch to a Natwest account following application to them last weekend), as I have to make sure I get that overdraft from my student years paid off.
I'll checkout MoneySupermarket, never used that. thanks.
Be aware Natwest customer service is based on Ryanairs model.
Nationwide however... £25 after I complained they cut me off at 7pm after 20 minutes on hold and their lines shut - now that is being proactive.
Nationwide also send most post 'premium' postage or something, it's pretty decent overall. Their 2.75 instant ISA (inc 1% bonus) is pretty reasonable (not the best I admit), and you need a current account I think but mine never has ANY money in it for more than 24 hours and it wasn't an issue to get.
Well I hadn't considered a building society option... Natwest advertising has been very persuasive over the past year or so. They still haven't written back to me yet, so maybe they don't even want me! :(
I'm still waiting on the call Natwest promised me two weeks ago to check if I had any questions on the application (I do). First it was 7pm the Monday but they rang at 7:30pm and I was occupied, then it was going to be Tuesday but they never called back after that. This is after I just wanted to change my address and ended up on the phone almost 30 minutes.
Another good example is the five weeks it took me to get a pin and working card when the card readers came out. Only one card (for the bills account) would work but as it was only used for DDs I didn't know the pin. Request a pin, get a new card, request another pin and it takes 3 weeks to arrive with one of the chase up calls being answered with we never sent one. My Mum has also had issues.
Could just be my family of course :P
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