How can I make money from savings?

I will be getting £5000 each year for 3 years for student finance and most of it will be going into my savings. So, can I get interest from my savings or something of that kind?

Reply 1

OllieDS

Original post by AnEvolvedApe

I will be getting £5000 each year for 3 years for student finance and most of it will be going into my savings. So, can I get interest from my savings or something of that kind?

I don't understand.

How are you getting a spare £5,000 a year off Student Finance that you can bank for Savings?

It's meant to cover expenses, not for you to bank for the future...

Reply 2

rayquaza17

Original post by OllieDS

I don't understand.

How are you getting a spare £5,000 a year off Student Finance that you can bank for Savings?

It's meant to cover expenses, not for you to bank for the future...

Its yours to do whatever you want with it.

OP:
Yes you can get interest from your savings. Go to your bank and see if you can set up a savings account.

Reply 3

OllieDS

Original post by rayquaza17

Its yours to do whatever you want with it.

OP:
Yes you can get interest from your savings. Go to your bank and see if you can set up a savings account.

I disagree. You should be given what you NEED. Not £5,000 a year for you to bank to gain savings and save for the future.

Reply 4

rayquaza17

Original post by OllieDS

I disagree. You should be given what you NEED. Not £5,000 a year for you to bank to gain savings and save for the future.

And I think people shouldn't be judged on what their parents earn, but the OP didn't ask for our opinions.

Reply 5

OllieDS

Original post by rayquaza17

And I think people shouldn't be judged on what their parents earn, but the OP didn't ask for our opinions.

I don't need to ask for permission to have an opinion thank you.

I imagine the OP means they have this £5,000 WITH expenses coming out of it. If they truly mean they have £5,000 after expenses to bank then Student Finance must've messed up somewhere.

And to answer your original question, savings accounts these days are very minimal. You could always look into locked ISA's or Stocks/Shares if you're knowledgeable about that.

Reply 6

rayquaza17

Original post by OllieDS

Student finance doesn't base your finance on how much your expenses are going to be, they base them on how much your parents earn and if you're going to be living at home/living in London.

I get around £5000 from student finance that I save up (I plan to use it to fund postgrad education) because I take my living expenses out of my part time job. Have I not made better use of my money than people who use it on alcohol, etc? Whatever your answer, it doesn't matter because it is mine to do that with; SF have given me a loan that I am obligated to pay back, but what I do with that loan is up to me.

Reply 7

iEatMuFFiNS

Invest in a virtual currency.

Reply 8

OllieDS

Original post by rayquaza17

I don't drink or smoke either and I'm good with money management but I certainly won't have £5,000 a year to bank lol. I was just unsure weather this was before or after expenses. Student Finance seems to make it up as they go along half of the time. And yes the good thing is you will have to pay it back so it isn't free money.

Reply 9

Welsh_insomniac

Original post by AnEvolvedApe

I will be getting £5000 each year for 3 years for student finance and most of it will be going into my savings. So, can I get interest from my savings or something of that kind?

Put 80% of it into a stocks and shares ISA. Use the other 20% for more risky investments. Peer to Peer lending sounds interesting, I might give it a shot and you can earn returns like 7%. I'd research into it :smile:

Reply 10

AnEvolvedApe

I get that much because my household earns WAY WAY WAY under 21,000 a year. And thanks for the help to the non-envious guys here.

Are stocks really something to get into?

Reply 11

RobElB

Original post by AnEvolvedApe

I get that much because my household earns WAY WAY WAY under 21,000 a year. And thanks for the help to the non-envious guys here.

Are stocks really something to get into?

But isn't the vast majority of that money going to go towards your accommodation and living expenses for the year?

Reply 12

The_Internet

Original post by AnEvolvedApe

I will be getting £5000 each year for 3 years for student finance and most of it will be going into my savings. So, can I get interest from my savings or something of that kind?

This requires a bit of trickery, to get the absolute best rates

To get the absolute best rates
Open two TSB Plus accounts, and use your "main" account to "pay in" £500/month in to each of them (I've recently been accepted for my second. Wooh!)

With TSB Plus, they pay 5% up to £2000. You're allowed two accounts ie: £4,000

You also open a Nationwide Flex Direct accounts. Now this wants you to "pay in" £1000/month. You could use the two TSB Plus accounts to "pay in" that amount (and send it back immediately, using standing orders)

You've got £1000 spare. Throw the £1000 at Nationwide. They pay 5% AER up to £2500

I would then throw it in to a Santander 123 account to make even more money

The maths (1st year):
£5000*1.05 = £5250

Tax calculations:

No tax: £250 * 1 = £250
20% tax: £250 * 0.8 = £200
40% tax: £250 * 0.6 = £150

If you dont pay tax, make sure to fill in an R85 form (I need to do that.. )

If you put that in a Santander 123 account, you'd also get an additional £7.50/year OR £6/year OR £4.50

If that £5000 is in there for three years, over that period, you gain

UP TO £5811.77 (max)

This sounds a lot, but in real terms, you're probably up around £487 over three years (due to CPI inflation, assuming that is 2%), which is still not bad I guess

If you don't want to do any "trickery" I guess stick it in a Santander 123 account, provided you pay in £500/month

Original post by OllieDS

I don't understand.

How are you getting a spare £5,000 a year off Student Finance that you can bank for Savings?

It's meant to cover expenses, not for you to bank for the future...

Original post by OllieDS

I disagree. You should be given what you NEED. Not £5,000 a year for you to bank to gain savings and save for the future.

Rubbish. It's a loan and you guys are worse off than us guys. Us guys pay it back at less than inflation, and you guys get screwed over pretty badly... So I'd definitely like to recoup some of that money back!

Also, that money might not be from student finance. They might have got it through other means...

And if any thing, this is a good way TO cover expenses. In real terms, making £487 over three years might cover the OP say if their laptop breaks....

Original post by Welsh_insomniac

That depends where you put it. Zopa pays 5.2% (Expected)

Doing the maths, I've worked out that you can make 4.6% at the banks - "easy access" (Though you do need like £17,500 :biggrin: