Savings account/ISA- where to start?

It all depends what you want to use the money for and when you are likely to need it. But I wouldn't bother with a Cash ISA, the rates are abysmal. There are some current accounts with relatively high interest rates (click here and scroll down to see a list of the best rates).

My suggestion would be to put £2000 into a TSB Classic Plus account. Then, open a Help to Buy ISA (Halifax currently has one offering 4%), you can deposit up to £1200 in your first month and another £200 each month thereafter. Any spare cash put into another high interest current account.

(edited 8 years ago)

Reply 2

username612415

Original post by Snufkin

So...?

I haven't had time to look into it yet, been busy with my current job and getting stuff sorted for my new one :ahee:

I was planning to have a proper read through tomorrow, but thanks for the response :yy:

Reply 3

Oh okay, I just wasn't sure if you had seen it because I forgot to quote you. What is your new job? Sounds epic.

Reply 4

username612415

Original post by Snufkin

Oh okay, I just wasn't sure if you had seen it because I forgot to quote you. What is your new job? Sounds epic.

I'm going to be doing sales/retail work on cruise ships. Boring work (and horrible hours!), but I'll get to travel the world for free for a while so I can live with that :ahee:

Found out yesterday my first assignment will include 34 different ports mostly around the Mediterranean, so not a bad place to spend the summer :yep:

Reply 5

ISAs aren't dead - read Martin Lewis on the matter.

From April ou can earn £1000 interest tax free so aim to build up a 'pot' in a high interest account. If you can lock it away you will get a higher rate of interest.

The benefit of an ISA is that the interest is always tax free so when you have enough saved to over the £1000 interest [and if interest rates rise again that is not that much] they are useful.

If you might want to buy a house then read about the new Help to buy ISAs but check the rules as there are quite a few!

Reply 6

Original post by Muttley79

Huh? There is no Cash ISA which comes close to beating the top current accounts, even if you lock money away. You'd need over £70,000 in the top paying ISA before you went over the £1000 tax-free interest allowance, how likey is that? Cash ISAs are pretty much dead, they're only worth using if you have large amounts of money to save every year in the hope that interest rates go up eventually.

Reply 7

Original post by Snufkin

Have you read Martin Lewis? He is more of an expert that you are.

Interest rates are historically low and once you reach £1 000 interest you shoud put the rest in an ISA ... protected forever there.

If rates go up to 5% you only need £20 000 to be hit for tax.

Reply 8

Did I say you can have both? It is worth reading Martin Lewis - there are massive restrictions on the Help to Buy ISA.

Reply 9

Look them up before you take one out - you don't get the bonus if you don't buy a house with it! You can only buy certain houses ...

Reply 10

You can only put in £200 a month ... and you can't have ever owned a house.

Reply 11

You can't ever assume! I had a house at his age.

He wants to save far more than he'll be allowed in a HTB ISA ... yes he could get one but he needs to read Martin Lewis not listen to people on here who don't know the FULL circumstances.

Reply 12

Perhaps you should read my posts properly before crticising my advice? I don't think I recommended a cash ISA - I said they weren't 'dead' as a poster claimed - there are circumstances where they are OK if you have more than £1 000 interest coming in or when interest rates go up.

We don't know the OP circumstances in detail - so he needs to read advice from an expert like Martin Lewis.

Reply 13

Original post by Muttley79

there are circumstances where they are OK if you have more than £1 000 interest coming in or when interest rates go up.

We don't know the OP circumstances in detail - so he needs to read advice from an expert like Martin Lewis.

As I have already said, you would need more than £70,000 in the current best rate ISA to go over the £1000 allowance. The OP doesn't even have 5k and is in no danger of going over the limit. I'm not going to repeat myself again.

Reply 14

Original post by Snufkin

With respect, Muttley79, I don't think you have a clue what you're talking about. Nowhere on Martin Lewis' website does it say Cash ISAs are better than high interest current accounts. Nor does it say there are "massive restrictions" on Help to Buy ISAs.

ISA interest rates will not go up for a long time, if they ever do, so please stop telling the OP to open one - he shouldn't - it makes no financial sense.

As I have already said, you would need more than £70,000 in the current best rate ISA to go over the £1000 allowance. The OP doesn't even have 5k and is in no danger of going over the limit. I'm not going to repeat myself again.

Snufkin - you said Cash ISAs are dead - that is not true - please stop misreading my posts.

Nowhere did I say the OP should take one out - I said for some people they are relevant.

You need to keep a constant watch on interest rates -

There are restriction on the house you can buy - it must be under £250 000 [more in London] - very little available for that price in some areas even starter homes.

Reply 15

We don't know the FULL circumstances - read my posts again - there is a problem with a RTB ISA where I live as no-one can find a house under £250 000 so you'll never get the bonus! Rates vary as do people's circumstances - the OP may not have said something that is important as the OP may not realise. You are both making massive assumptions.

Martin Lewis DOES give specific advice - do you watch his programme? Have you explored his website in detail?

Reply 16