Savings advice

[mickvp]

I am a member of the local credit union, and get ~4% on savings. Its also handy if I need a loan but don't want to touch my savings (the credit union im with run a plan which will allow you to take a loan out equal to the value of any savings you have for 3%APR - provided you don't touch what you have invested).

[fazersharp]

Rustyrider you could see where I was going to go with that one, and kindly demonstrated it with your daughters bonds

You know what the real answer is - and we have all with our replies said it. Its that you have to have a little bit of everything.

Now mickvp I guess that I just google it but I am interested in credit unions and need to know more

[mickvp]

pretty simple really mate. mines is basically a normal type of savings account (I can get the money out any time I need/want to). Its run/owned by its members as opposed to an actual bank, and so instead of profits from the investments being passed onto shareholders, they members get paid a slightly better APR as payment.

I have a standing order setup so a small amount each week comes off my wage and goes into it which builds up over time.

your best bet is to contact your local credit union (credit unions have strange acceptance criteria - usually the type of job you are in, or your locality) and they can answer any of your questions as the way they operate can vary slightly between unions in terms of both how they operate, and what financial products they offer.

...or you could just google it :lol

-Mick

[Pat]

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  :rolleyes

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.

[Grahamm]

The mother inlaw has 9 grand sat in a bank doing nothing,making nothing,

so whats a better way to invest this witout risk?

Get as much as possible (ie £5760) into a Cash ISA before the 6th of April, then after the 6th (ie a new tax year) she can put the rest of it in.

This gives instant access, tax free interest and is risk-free as it's covered by the Financial Services Compensation Scheme which protects up to £85,000 in one Financial Institution.

The best Instant Access rate at the moment is 1.75% (but remember that's tax free). You can get 2.05% but that requires locking it away for 2 years. Also the 1.75% may have strings (eg have a bonus for 1 year and then drop down again, so always check for these as you may need to move the money next year).

See Martin Lewis' Money Saving Expert site for more information.

PS Premium Bonds aren't worth it see http://www.moneysavingexpert.com/news/ba...y-worth-it

[Grandma]

Nationwide put some of my funds in Legal & General ([/color][color=rgb(51, 51, 51)]L&G (N) Tracker Trust A (Acc) )[/color][/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.

[red98]

[quote author=red98 link=topic=11588.msg125228#msg125228 date=1391720140]
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  :rolleyes

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.
[/quote]




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]

[quote author=midden link=topic=11588.msg125304#msg125304 date=1391757228]
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.
[/quote]

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]

[quote author=midden link=topic=11588.msg125329#msg125329 date=1391774508]
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
[/quote]
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]

[quote author=hightower link=topic=11588.msg125337#msg125337 date=1391777029]
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