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Savings advice


paulyjambo

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Hi guys I'm looking for a bit of advice on saving plans. I am looking to buy a house soon and I'm looking for the best way to maximise my savings. I have ?3K just now but really dont know what type of plan to put it into. I'm also going to be looking to save upto ?500 a month for the next wee while and again I'm a little unsure what type of plan to put this into to make maximum money with minimal risk.

 

Any help is greatly apprecieated! Cheers

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coppercrutch
Hi guys I'm looking for a bit of advice on saving plans. I am looking to buy a house soon and I'm looking for the best way to maximise my savings. I have ?3K just now but really dont know what type of plan to put it into. I'm also going to be looking to save upto ?500 a month for the next wee while and again I'm a little unsure what type of plan to put this into to make maximum money with minimal risk.

 

Any help is greatly apprecieated! Cheers

 

The holy grail !!

 

Well if you ahve 3k sitting there just now you should take advantage of the upcoming tax year. Put your full 3k into a cash ISA before April 4th. Then after April 4th you can put in up to 3600 next year into the same account. Your savings will then be tax free. One of the banks has a decent offer right now where you get 6.5% I think. Have a look at the following site it is pretty good.

 

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

 

If you are saving 500 per month then you will be going above your limit for next year. You could open a high interest account and put it into that. This will not be tax free of course but you can still get decent rates.

 

Also you could think about putting it into NS and I index linked certificates. These are linked to inflation rather than interest rates so could be a winner. You really want to be putting in some large lump sums into these rather than a monthly input though - as they are over 3 or 5 years ( Although you can exit whenever you want but it affects your return). Safest place however as your cash is protected by the Treasury.

 

http://www.nsandi.com/products/ilsc/index.jsp

 

NS and I also do a direct ISA with a decent rate. Not the best but the safest place for you money.

 

As for buying a house soon don't get me started......;)

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Stuart Lyon

Very helpful I have been looking at my options and this has helped clarify things - thanks from me too.

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coppercrutch

No problems.

 

If you are interested in shares and unit truts you can also package these into a tax free ISA 'wrapper'. The rules change this year and the total you can invest between cash and shares in your overall ISA is ?7200. The maximum cash you can put in however is 3600.

 

With this cash wrapper you can put in say 3600 for buying shares, and use your other 3600 for cash. Then you can self select which shares you wish to purchase up to the value of 3600, and buy and sell them at your leisure. This will all be tax free as well on any profits you make. At the moment though any profits will be doing well !! Very volatile so not really the best place for any 'safe' savings. If you fancy a bit of a gamble though it keeps saving interesting !!

 

Most of the major banks do self select share ISA's. Just give them a call or go in and have a chat. You can do all of your trading online which is useful but a little scary !!

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