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....
This is as young as you're ever going to be!
(07-02-14, 06:13 PM)fazed link Wrote: 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 
Women have chocolate men have bikes.....
including ones who like chocolate.... 
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 :pc :o
(07-02-14, 01:43 PM)hightower link Wrote: 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.
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.
An ageing test pilot for home grown widgets that may fail at anytime.
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 Aviva[size=1em]8.75% CUM IRR PRF GBP1[/size], but I'm using as example
https://apps.barclaysstockbrokers.co.uk/...ockId=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.
So that's about 1.1%. Shocking.
Still glad you're happily sorted now
Women have chocolate men have bikes.....
including ones who like chocolate....
You've come in too late Phil grrrrr :lol
Women have chocolate men have bikes.....
including ones who like chocolate....
Started typing that whilst eating my tea and watching the news. Who said men cant multitask, just a bit slow :lol
(07-02-14, 08:44 PM)Phil link Wrote: 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!
(08-02-14, 01:42 PM)Grahamm link Wrote: [quote author=Phil link=topic=11588.msg125427#msg125427 date=1391802248]
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!
[/quote]
All of this investing lark has risks.
The dealing charges for the shares I've bought came to £39, plus £28 stamp duty. So about 1.2% costs so far. Thats all the charges I'll pay until I sell the shares. The Stocks and Shares ISAs have yearly management charges, typically 1.5%? So if your £5000 investment does well and goes up 10% to £5500, next year your yearly management charge will be £82.50. Then if the shares drop the next year, you wont have the same capital growth but did have but have paid a load of money. You will have dividends in the meantime, I haven't a clue what the average of the FTSE 100 is. Some pay 5%, some 1-2%, some none.
If inflation rates stay low I think my preferential shares will be a good investment. I do wonder what the share price will be in 10 years time though. There wont be a demand for the shares if the 8.75p per share isn't actually worth much, and the share price wont be pushed up a lot due to the fixed return. What is certain though, I wasn't getting much interest in the savings account I had the money in.
Next tax year I might do a Stocks and Shares ISA. I'm thinking a fund based around investing in property might be a good idea as the housing market recovers.
2009-2011 I made quite a bit just buying and selling Barclays shares. I kept buying at £2.70 and selling at £2.95 when the markets were fluctuation. Everytime the American President open his gob about Banks the share prices dropped :lol
My step dad bought 87 shares in the National Grid around 1995 when the company was formed from the MEB and whatever. He has had dividends most years. They were £2.05 back then and are now £7.92. Thats way ahead of inflation. The reason why he chose those was just because he was an electrician, nothing else.
Sometimes my head has felt like exploding thinking about it all, and think I should have spent it on another holiday as someone suggested earlier.
(08-02-14, 07:18 PM)Phil link Wrote: The dealing charges for the shares I've bought came to £39, plus £28 stamp duty. So about 1.2% costs so far. Thats all the charges I'll pay until I sell the shares. The Stocks and Shares ISAs have yearly management charges, typically 1.5%?
As mine is a simple tracker fund, it only charges 1%. What I do is wait until the index takes a dive, then chuck a grand in from the Cash ISA.
The best one was when the market dropped below 3,500 a few years ago, that money has now gone up around 80%!
Quote:Next tax year I might do a Stocks and Shares ISA. I'm thinking a fund based around investing in property might be a good idea as the housing market recovers.
Or until the ridiculously over-inflated property bubble bursts.
NB The Bank of England is (at last) ending the Funding for Lending scheme which has been pumping money into the housing market and keeping savings rates low (because the banks haven't had to offer competitive interest rates on savings as the government is filling their coffers). So I wouldn't be suprised to see house prices (especially those in London) finally dropping to a realistic level.
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