Savings advice

[Grandma]

Nationwide put some of my funds in Legal & General ([/color]L&G (N) Tracker Trust A (Acc) )[/size] a few years back, I was a bit dubious as I'd worked in a Bank & knew this could be risky, plus my Mother had lost savings this way, however, they have performed well and increased value to keep up with inflation. As Nationwide not a Bank have more confidence in them.[/size]

[red98]

Got an ISA......but not impressed with it........premium bonds sounds like a good bet.......been thinking about moving my lloyds accounts to the halifax..........bit different to other banks as I think the bank is owner by the customers....unless of course you know different 

The Halifax isn't owned by it's customers, it's owned by Lloyds..... 

The Nationwide is still a building society so is owned by it's customers and there's still a few other smaller building societies around.

thanks for putting me right pat..........i`ll have a look at nationwide and see what they are offering 

[midden]

Although there is a £2 the Santander 123 account pays 3% if conditions are met.  Have to put £500 in to it each month but that can be 100 quid put in and out 5times blah blah blah.  It also gives cash bavk on certain bills paid from it.  So I use my account as savings but transfer the £500 in to cover bills on DDebit which then gives me cash back which more than covers the £2 charge.
If she pays tax on her savings an isa paying 2.5% would be better, opening with max allowed before April then putting rest in after April.     

[pitternator]

whenever anyone considers investing in a company , do remember it isn't risk free. Don't invest any money you cant afford to lose. A 9k lump sum isn't big TBH , but is maybe a persons life savings, so protecting it is key. Isa is a good safe bet for slow growth with 100% protection.

Isa can be set up online. I have a Tesco one which was reasonable interest last year , like kartman says its been reduced this year ...come march there will be better deals as the scramble for cash increases, so probably will switch it somewhere else.... We wont get good interest rates anywhere as so much investment cash goes unused ...

[fazersharp]

Although there is a £2 the Santander 123 account pays 3% if conditions are met.  It also gives cash bavk on certain bills paid from it.   then gives me cash back which more than covers the £2 charge.

Here are some of those conditions -you do not get 3%  here is the small print
1.00%  on your entire balance, once your balance is £1,000 or over.
2.00%  (variable) on your entire balance, once your balance is £2,000
3.00%  (variable) on your entire balance, once your balance is £3,000
(up to a maximum of £20,000).
 
So if you have less than £1000 in there then you get NO interest.
 
  Please whatever cockamamey schemes and swindles or "extras" they come up with DO NOT open an account that you have to pay for.
The banks want all accounts to be fee paying ones, ok you say its only £24 a year and I get other benefits, but I guarantee you that once fee paying accounts take over then the extras will be removed and the fees will go up.
By opening a fee paying account you are sleepwalking into opening your pocket and letting the banks take what they want.
 
 

[midden]

Although there is a £2 the Santander 123 account pays 3% if conditions are met.  It also gives cash bavk on certain bills paid from it.   then gives me cash back which more than covers the £2 charge.

Here are some of those conditions -you do not get 3%  here is the small print
1.00%  on your entire balance, once your balance is £1,000 or over.
2.00%  (variable) on your entire balance, once your balance is £2,000
3.00%  (variable) on your entire balance, once your balance is £3,000
(up to a maximum of £20,000).
 R
So if you have less than £1000 in there then you get NO interest.
 
  Please whatever cockamamey schemes and swindles or "extras" they come up with DO NOT open an account that you have to pay for.
The banks want all accounts to be fee paying ones, ok you say its only £24 a year and I get other benefits, but I guarantee you that once fee paying accounts take over then the extras will be removed and the fees will go up.
By opening a fee paying account you are sleepwalking into opening your pocket and letting the banks take what they want.

Forgive me for my poor education that has  me believing £9000 is more than £3000 and less than £20000
The £2 charge is actually being paid for by santander.  Paying £400  santander mortgage through the account pays me £4 add the other bills , water, phone etc  I'm in profit.  I literally only use the account a (what has now become a high interrest) savings account). Transfering money for the cashback attracting bills to it from my main current account.  Far as I'm concerned it makes perfect financial sense and martin lewis would be proud of me for being paid to save

[fazersharp]

All right -- all right. All I was doing was making it clear that you do not get 3% as your post would sugest.

the Santander 123 account pays 3% if conditions are met.

Ok it works for you now but my warning still stands as later down the line once all accounts are fee paying - you will be out of pocket, so by taking the bribe now you will be paying back later.

[fazersharp]

Transfering money for the cashback attracting bills to it from my main current account.

Im sure that you are aware that transfers from other Santander accounts do not count for interest  - here is that small print
 
transfers from any other Santander accounts do not count towards the monthly funding amount

[hightower]

Has she got a mortgage? If so, you are better (if she can afford to) paying off some more mortgage as savings rates are nowhere near what mortgage rates are - that'll be best value for money I would think.


ISAs are terrible at the moment. Shares ISAs are different though. In the last 6 months I've invested £1200 in a shares ISA, and my balance is £1350 - it's a risk, but find me a savings account that can do that. It's all managed by an IFA and everything so nothing to worry about. Paid about £3600 in total over the years and my balance is closer to £4200.

[midden]

Transfering money for the cashback attracting bills to it from my main current account.

Im sure that you are aware that transfers from other Santander accounts do not count for interest  - here is that small print
 
transfers from any other Santander accounts do not count towards the monthly funding amount

Yeah cheers I am aware, I read every smallprint looking for the negatives.  As for the 3% interest, in the case I was lending advice too it will pay 3%. I didn't spell out all the detail as I wouldn't expect anyone to jump straight in without further investigations of their own.
As for the paying for accounts, if its going to happen it will do so regardless of my boycotting it now so I may as well take the gain now while its on offer, ready to close account as soon as incentives are stopped.
Some would also argue that we are paying for the free accounts as well anyway through the poor interest rates.

[midden]

Has she got a mortgage? If so, you are better (if she can afford to) paying off some more mortgage as savings rates are nowhere near what mortgage rates are - that'll be best value for money I would think.


Ageed,  but only if quick access to money isn't needed. I was told by bank once that I am entitled to have any overpayments paid back to me, so they make perfect saving if prepared to wait for repayment.

[midden]

That said I'm actually better off keeping my money in the 123 account as its 1% cashback on the monthly mort payment (inc the capital repayment portion)

[bri h]

Ive got two kids at university, what does savings mean?

[fazersharp]

I will leave this now --- but with this

if its going to happen it will do so regardless of my boycotting it now so I may as well take the gain now while its on offer,

It wont be just you boycotting it though -- it will be you and me

 
ready to close account as soon as incentives are stopped

And thats what I am saying, because every one will wake up into the new world where every bank are now charging extra fees and NO incentives will be left, and you will say "my god what have I done"

[Tefer]

So how do you buy ISAs ?

Sites like these help to show rates and good deals


http://www.moneysavingexpert.com/savings/best-cash-isa

[fazed]

Most if not all savings accounts of low risk are paying less than 2% inflation is about 2.5% so a NEGATIVE rate of return on just about anything that has tax deducted at source.  Take a look at 'peer to peer' lending which can return 6-9 % try looking at zoopla slightly higher risk but spread over many accounts but much higher interest.  Otherwise you're better off redeeming any long term debt as someone else pointed out, but p2p may be worth a look....

[midden]

Most if not all savings accounts of low risk are paying less than 2% inflation is about 2.5% so a NEGATIVE rate of return on just about anything that has tax deducted at source.  Take a look at 'peer to peer' lending which can return 6-9 % try looking at zoopla slightly higher risk but spread over many accounts but much higher interest.  Otherwise you're better off redeeming any long term debt as someone else pointed out, but p2p may be worth a look....

I was trying to remember the name of this, nearest I got was community banks.  Yes peer to peer seems very good option and you can decide the level of risk too:)

[Oldgit]

Spend it on an bloody good holiday--cos all your doing is paying the friggin banks debts --no interest worth talking about, but at least you could have great memories of a bloody good holiday 

[Grahamm]

ISAs are terrible at the moment. Shares ISAs are different though. In the last 6 months I've invested £1200 in a shares ISA, and my balance is £1350 - it's a risk, but find me a savings account that can do that. It's all managed by an IFA and everything so nothing to worry about. Paid about £3600 in total over the years and my balance is closer to £4200.

Yes, you can make good returns on stocks and shares ISAs, but you can also lose a lot if you invest at the wrong point.

I have a FTSE 100 tracker ISA and I wait until the market takes a big dive, then chuck in £1000 from my cash ISA because the market will recover, it just might take a while so it's a long term investment whilst I've got enough in the instant access cash ISA to cover any contingencies.

[slimwilly]

Well thanks for the replies, my wife was with her today in a meeting in the bank and they transferred the 5 grand max into accessible savings ISAs ,and will move the rest after April. interest is not great but last year she go £25 interest on £9 grand ,, she will only get a hundred now but it is an improvement.

[Phil]

I recently had some money to invest/save, but will need it soon to pay for house improvements. I opened a 123 account last December. Gas, Electricity, water, council tax, TV/phone direct debits all moved to Santander so the cashback pays the monthly fee. Interest paid £39.76 (£9.94 tax deducted at 20%) so I'll have a bit more tax to pay. My current ISA gives 2% tax free.   You have to pay in £500 a month, but this can be from another bank account, eg Barclays. Standing orders set up to move it back and forth.

So if you have all your ISA allowance sorted and want easy access and low risk, the Santander 123 seems to be the best on the market.  Once they stick their charges up, reduce the interest rate, stop the cashback or whatever, I'll move my money elsewhere. I think ALL banks do this on savings accounts, tempt you in with an attractive bonus interest rate than after 1 year the interest rate plummets. You have to keep on top of it, just like car/bike/house insurance. Also companies like Sky/Virgin who put your fees up each year ahead of inflation hoping you dont notice and stick with them.

For stockmarket shares, I went for 'preferential' shares. These are safer than normal shares if the company go under as they are higher up the pecking order. They are long term investments and give a set return. The difference between buy and sell price is large, so you dont trade these regularly.

I didnt buy these Aviva8.75% CUM IRR PRF GBP1, but I'm using as example
https://apps.barclaysstockbrokers.co.uk/Pricing/Pricing/Index?stockId=AV.A

8.75% GBP1 means they pay 8.75% of the issue price which was £1, so will pay 8.75p per share. These shares are currently on the market at £1.34, thats a return of 6.5% on your £1.34. 10% tax on dividends.
If they dont pay the dividend because of lack of profits, they give you extra shares. I'll be keeping these for 10 years or so I reckon.

Just my opinion and what I've done, not financial advice.

[midden]

So that's about 1.1%. Shocking.
Still glad you're happily sorted now

[midden]

You've come in too late Phil  grrrrr 

[Phil]

Started typing that whilst eating my tea and watching the news. Who said men cant multitask, just a bit slow

[Grahamm]

For stockmarket shares, I went for 'preferential' shares.

Unless you know what you're doing, it's much better to get a Stocks and Shares ISA (eg like the FTSE 100 Tracker ISA I have) because these have the lowest charges and it spreads the risk over a wide portfolio, rather than risking all your eggs in one basket.

But shares are, of course, a long term investment and can go down as well as up!