The Student Room Group

£21 grand to save

I have £12k kicking around in a 1% interest, locked away for 12 months post office bond. Due to come out Aug 2015, so if I take it out before I then I lose the interest (minimal at today in Aug 14).

Got another £10k in my current account. Happy to take £9k of this out into long term savings. I'm saving about £800 a month of my salary too.

Got £5k in ISA


So what bank account has the best interest for my £21k? I'm happy to lock it away for 1 year, or even 2 years.

Thanks

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Premium bonds.
I would pour the lot into physical gold personally, though not at it's lowest price in 3 years it is circling there about and with international tension after international tension gracing our news outlets, it will only take one hot incident to make the price soar, if NATO doesn't abbandon its plans to intergrate the Ukraine into its ranks, Russia will keep trying to destabilse its sovereignty and in response NATO will implement more sanctions, and eventually Putin will snap and cut of the gas to Europe, boom economic crisis, gold always goes up in those and rarely settles lower than its value pre crisis, this time next year that 21k could be worth double ...could ...it could also be worth 21k ...or 22k but unlikely less than 21k.
Original post by bubadeeboop
I would pour the lot into physical gold personally, though not at it's lowest price in 3 years it is circling there about and with international tension after international tension gracing our news outlets, it will only take one hot incident to make the price soar, if NATO doesn't abbandon its plans to intergrate the Ukraine into its ranks, Russia will keep trying to destabilse its sovereignty and in response NATO will implement more sanctions, and eventually Putin will snap and cut of the gas to Europe, boom economic crisis, gold always goes up in those and rarely settles lower than its value pre crisis, this time next year that 21k could be worth double ...could ...it could also be worth 21k ...or 22k but unlikely less than 21k.


L2diversify
Reply 4
Original post by Tayfun Tugra
Premium bonds.

Why?
Original post by bubadeeboop
I would pour the lot into physical gold personally, though not at it's lowest price in 3 years it is circling there about and with international tension after international tension gracing our news outlets, it will only take one hot incident to make the price soar, if NATO doesn't abbandon its plans to intergrate the Ukraine into its ranks, Russia will keep trying to destabilse its sovereignty and in response NATO will implement more sanctions, and eventually Putin will snap and cut of the gas to Europe, boom economic crisis, gold always goes up in those and rarely settles lower than its value pre crisis, this time next year that 21k could be worth double ...could ...it could also be worth 21k ...or 22k but unlikely less than 21k.

Was looking more for X bank and Y bank account, Gold seems risky where to store it? Under my pillow?
Original post by FuelBowser
Why?

Was looking more for X bank and Y bank account, Gold seems risky where to store it? Under my pillow?


well 21k is only 27 troy oz, that could easily be held in the form of 27 coins or even 2 or 3 large gold bars.

Sure under your pillow, or sealed in plastic and submerged in an old paint tin, or in the insolation of your attic, the key to precious metal security is not letting people know you have it.
Reply 6
These are my thoughts

I have £5k in a Nationwide ISA-2.0%.

Add £10k from my current account to this, taking me up to the £15k ISA limit, earning 2.0% interest tax free.

Then I take my £12k out the post office and look for a bank that pays more than 1% interest
Original post by FuelBowser
Why?



with the chance of willing a million, thats where id put my cash for a year. Even if you dont win anything, theres no risk in loosing it.

Posted from TSR Mobile
Original post by FuelBowser
These are my thoughts

I have £5k in a Nationwide ISA-2.0%.

Add £10k from my current account to this, taking me up to the £15k ISA limit, earning 2.0% interest tax free.

Then I take my £12k out the post office and look for a bank that pays more than 1% interest


You realise that the 15k ISA limit is deposits per financial year, not total...

Santander offer 3% (taxable) on balances between £3k and £20k on their 123 account + cashback offers.

TSB offer 5% on balances <£2k on one of their current accounts.

If you are willing to spread your money across several accounts you can get some half decent rates.
Original post by FuelBowser
Gold seems risky where to store it? Under my pillow?


This actually made me LOL :biggrin:
Reply 10
Original post by Hedgeman49
You realise that the 15k ISA limit is deposits per financial year, not total...

Santander offer 3% (taxable) on balances between £3k and £20k on their 123 account + cashback offers.

TSB offer 5% on balances <£2k on one of their current accounts.

If you are willing to spread your money across several accounts you can get some half decent rates.

No I didn't realise that

So I should take my £12k, add £3k from my current account and put that in an ISA

Then I have £7k left in my current account which I'll take £6k out and put with Santander as 3% looks good
Take the gold option seriously. Store it in a safe at a bank.

Posted from TSR Mobile
Reply 12
Original post by Tayfun Tugra
with the chance of willing a million, thats where id put my cash for a year. Even if you dont win anything, theres no risk in loosing it.

Posted from TSR Mobile


The 'risk' is of losing part of it through inflation. Statistically Premium Bonds do not pay out the same percentage increase as a decent cash ISA and nowhere near the same amount as stocks and shares,

Also: lol at the guy suggesting you chuck it all into gold.
Original post by FuelBowser
No I didn't realise that

So I should take my £12k, add £3k from my current account and put that in an ISA

Then I have £7k left in my current account which I'll take £6k out and put with Santander as 3% looks good


I would open two TSB current accounts at 5% and put £2k in each (£4k) then open a Nationwide account which is 5% for the first year and put the rest in there (£2k). You need to pay in £500 to each TSB per month and £1k into nationwide per month, but that can just be done by standing orders between the three accounts.
ISAs are no brainer.
Crap interest rates now BUT open one now and one every year and your return will be tax free forever, whatever your personal income tax rate or whatever the interest rate.
Don't open one and you lose that year's opportunity forever.
Interest rates will NOT stay low forever.

Al these fancy bank accounts require direct debits set up, minimum monthly payments and are fully taxable. Only useful after ISAs are maxed out.
(edited 9 years ago)
Original post by balotelli12
Al these fancy bank accounts require direct debits set up, minimum monthly payments and are fully taxable. Only useful after ISAs are maxed out.


Depends on how long you want to keep the money locked away. No point putting it in a 2% ISA when you are thinking of buying a new car with it in 2 years time.
Reply 16
Original post by Runninground
I would open two TSB current accounts at 5% and put £2k in each (£4k) then open a Nationwide account which is 5% for the first year and put the rest in there (£2k). You need to pay in £500 to each TSB per month and £1k into nationwide per month, but that can just be done by standing orders between the three accounts.


Original post by balotelli12
ISAs are no brainer.
Crap interest rates now BUT open one now and one every year and your return will be tax free forever, whatever your personal income tax rate or whatever the interest rate.
Don't open one and you lose that year's opportunity forever.
Interest rates will NOT stay low forever.

Al these fancy bank accounts require direct debits set up, minimum monthly payments and are fully taxable. Only useful after ISAs are maxed out.

I see we have 2 schools of thought here. I'm a lower rate tax payer so I the tax free ISA isn't as useful to me as a higher rate tax payer. Gross salary £28k, take home £1650 a month.


I'm thinking:

1) Bump my 5k ISA up to 20k with my post office bond and my current account

2) Open 2 TSB Current Accounts and put £2k in each and put another £3k in a Nationwide account, leaving my current Natwest current account with next to nothing in it.

3) Keep my salary being paid into Natwest (£1650 a month) and use 1 standing order to send £1k a month from there to Nationwide and then 2 more standing orders sending £500 a month from Nationwide into each TSB account.

4) When the TSB accounts start to exceed £2k, i just send the money back to Nationwide


Thoughts? :smile:
Original post by FuelBowser
I see we have 2 schools of thought here. I'm a lower rate tax payer so I the tax free ISA isn't as useful to me as a higher rate tax payer. Gross salary £28k, take home £1650 a month.


I'm thinking:

1) Bump my 5k ISA up to 20k with my post office bond and my current account

2) Open 2 TSB Current Accounts and put £2k in each and put another £3k in a Nationwide account, leaving my current Natwest current account with next to nothing in it.

3) Keep my salary being paid into Natwest (£1650 a month) and use 1 standing order to send £1k a month from there to Nationwide and then 2 more standing orders sending £500 a month from Nationwide into each TSB account.

4) When the TSB accounts start to exceed £2k, i just send the money back to Nationwide


Thoughts? :smile:


Nationwide 5% is on balances up to £2.5k , so any over that I would move to the Santander 3% (or any other interest account)
Reply 18
Original post by Runninground
Nationwide 5% is on balances up to £2.5k , so any over that I would move to the Santander 3% (or any other interest account)

Thanks

I take it 2 current accounts with TSB is the most you're allowed to have too?
Original post by FuelBowser
Thanks

I take it 2 current accounts with TSB is the most you're allowed to have too?


Yep

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