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    best savings account or isa? Advice appreciated

    I have £1,700 saved and I'm adding £3 a week to it. It's in a Barclays savings account at the moment but I'm looking for advice on the best option to get the most interest out of it. I would like the option to be able to withdraw some of it out if I need to. Also would prefer it not to be a Barclays account. Any advice would be greatly appreciated! Thanks :-)

    26 Comments

    Don't just look at savings accounts / ISAs. Some current accounts pay better rates of return. E.g.Nationwide current account pays 5% up to £2500 so that will see you ok for a while. You do need to pay in £1000 a month, but can pay it out straightaway (which is what I do).

    Check out money saving expert site for really good advice in this area.

    SuffolkLad222

    Don't just look at savings accounts / ISAs. Some current accounts pay … Don't just look at savings accounts / ISAs. Some current accounts pay better rates of return. E.g.Nationwide current account pays 5% up to £2500 so that will see you ok for a while. You do need to pay in £1000 a month, but can pay it out straightaway (which is what I do).Check out money saving expert site for really good advice in this area.

    This is good advice. If you have a standard current account, use it to pay in £1000 from this nationwide account each month, than pay back to the nationwide account the following day (even same day might work but i'm not 100% sure) so that you satisfy their only requirement of paying in £1k a month.

    Cash ISAs are pretty much meaningless now as these days the first £1000 of interest is tax free.

    Consider investing in stocks and shares or a stocks and shares ISA if you are planning to go long term or even an Income fund.

    I have Money in Artemis' Income Fund, and it pays £700+ twice a year off about 35k invested, but also the value of the fund varies too. My fund started with 10k about 15 years ago.

    +1
    MSE is definitely the place to go for guidance on how to maximise your interest.

    Bear in mind that at 1%, you'll earn £17 a year. If you can double that rate, it's another £17 a year. 35p a week.

    You have to judge whether it's worth the effort for such small amount of additional interest. You might be better off finding other things that can earn more - eg giving up smoking/fewer Starbucks/cutting down on alcohol. Any one of these could let you double the amount you save each week.

    for £3 a week, your better off picking a horse each week.

    Original Poster

    Thanks guys for the advice. I don't have much coming in, I'm on minimum wage working 16 hours a week and I'm a single parent so I get a little bit of my rent paid but not much. I pay for everything else except prescriptions and I'm struggling. So there's no chance I would b able to pay a thousand pounds a month into anywhere. I will into current accounts too, thankyou :-)

    Original Poster

    Ps the reason I'm only adding 3 pound a week to is so I don't notice it given the low income I'm on while still allowing me to save. I figure a little is better then nothing

    leah91085

    Thanks guys for the advice. I don't have much coming in, I'm on minimum … Thanks guys for the advice. I don't have much coming in, I'm on minimum wage working 16 hours a week and I'm a single parent so I get a little bit of my rent paid but not much. I pay for everything else except prescriptions and I'm struggling. So there's no chance I would b able to pay a thousand pounds a month into anywhere. I will into current accounts too, thankyou :-)



    Hi. You said you have £1700 already so you do have enough money. All you need to do is deposit that £1700 with Nationwide, and once a month, transfer £1000 of it out and then back in again. That way you qualify for the 5% rate. You don't need £1000 of 'new' money. Just transfer the existing money out and back in again.

    P.s. I like your intentions and if only more people aspired to take these small steps to save, the world would be in a much better place!

    Edited by: "SuffolkLad222" 10th Jan

    Original Poster

    SuffolkLad222

    Hi. You said you have £1700 already so you do have enough money. All you … Hi. You said you have £1700 already so you do have enough money. All you need to do is deposit that £1700 with Nationwide, and once a month, transfer £1000 of it out and then back in again. That way you qualify for the 5% rate. You don't need £1000 of 'new' money. Just transfer the existing money out and back in again.


    Ohhhh I see, thankyou for the good information. I thought it meant add an additional £1000 every month. Thankyou, I will look at that

    Drooler

    for £3 a week, your better off picking a horse each week.



    What? And risk losing £3? Not good advice.

    No-one should be discouraged from getting into the habit of saving. It might only be £3 with low interest rates today, but it all adds up and one day maybe the regular payments will be able to increase and the rates will go up.

    Original Poster

    Drooler

    for £3 a week, your better off picking a horse each week.


    I'm in no position to be playing a betting game with my income.

    I've not read all the comments above though maybe have a look at the following as well.

    moneysavingexpert.com/

    Original Poster

    SuffolkLad222

    Hi. You said you have £1700 already so you do have enough money. All you … Hi. You said you have £1700 already so you do have enough money. All you need to do is deposit that £1700 with Nationwide, and once a month, transfer £1000 of it out and then back in again. That way you qualify for the 5% rate. You don't need £1000 of 'new' money. Just transfer the existing money out and back in again.P.s. I like your intentions and if only more people aspired to take these small steps to save, the world would be in a much better place!


    Been looking at the nationwide flexdirect account (think that is the one you were referring to). Doesn't it say I'd get 5%interest on the first £2,500? Apologies if I've misread.

    Original Poster

    LemonHead

    I've not read all the comments above though maybe have a look at the … I've not read all the comments above though maybe have a look at the following as well.http://www.moneysavingexpert.com/


    Thankyou I've looked at that, some very useful advice on there :-)

    I think the Post Office have an easy access account that pays about 1% although this is on a bonus rate so after a year it will fall and you'd be wise to move your money then but it is something and I really love your attitude to money, good luck

    kooks65

    I think the Post Office have an easy access account that pays about 1% … I think the Post Office have an easy access account that pays about 1% although this is on a bonus rate so after a year it will fall and you'd be wise to move your money then but it is something and I really love your attitude to money, good luck



    This is true (well almost, the rate is 0.9%) - I have one of these also (I am an avid saver and max out all the best rate accounts :)). The Nationwide rate of 5% is by far the best deal available.

    leah91085

    Been looking at the nationwide flexdirect account (think that is the one … Been looking at the nationwide flexdirect account (think that is the one you were referring to). Doesn't it say I'd get 5%interest on the first £2,500? Apologies if I've misread.



    Says it in very large letters on this link

    Original Poster

    SuffolkLad222

    Says it in very large letters on this link


    Ahh thankyou for clarifying for me. So it's up to 2,500 not over. Thankyou. I'll go in on friday (day off) and see if they have someone available to go through it with me. I have good credit so hopefully they will allow me to open this account. Do u think I should not mention that I'm planning on withdrawing and re-adding the same £1,000 each month?

    leah91085

    Ahh thankyou for clarifying for me. So it's up to 2,500 not over. … Ahh thankyou for clarifying for me. So it's up to 2,500 not over. Thankyou. I'll go in on friday (day off) and see if they have someone available to go through it with me. I have good credit so hopefully they will allow me to open this account. Do u think I should not mention that I'm planning on withdrawing and re-adding the same £1,000 each month?



    I don't think there's any need to mention it, but if you do e.g. for piece of mind, it shouldn't make any difference. I've had mine for 2 months and paid £1000 in and out on the same and earned the 5% interest.

    Just a thought, as it is a current account, you make want to consider using it as such to really maximise your interest. Any money in there for however short length of time will earn you a few extra pence than in a no-interest current account. Money for nothing!
    You may prefer to have the discipline of a separate account for your savings though, which is understandable.

    Check out virgin online is a they were offering a 2.0% for a year

    Original Poster

    tasape

    Check out virgin online is a they were offering a 2.0% for a year


    Thanks I'll do that now, cheers

    tasape

    Check out virgin online is a they were offering a 2.0% for a year



    ​Correct. I also have one of those. I'd recommend the Nationwide account though. when you've reached £2500 or the end of the 12 month bonus period, then is the time to move to the next best deal which could still be the virgin account

    And to complete my set, Leeds Building Society are also offering a good rate too.

    Original Poster

    tasape

    Check out virgin online is a they were offering a 2.0% for a year



    SuffolkLad222

    And to complete my set, Leeds Building Society are also offering a good … And to complete my set, Leeds Building Society are also offering a good rate too.

    im thinking this virgin regular saver is looking good too as it's got the bonus of me not having to bother moving money about every month

    tasape

    Check out virgin online is a they were offering a 2.0% for a year

    SuffolkLad222

    And to complete my set, Leeds Building Society are also offering a good … And to complete my set, Leeds Building Society are also offering a good rate too.



    ​I can understand that. it is easy to set up an automatic payment though.

    Original Poster

    Oh yes I didn't think of that, good idea :-)
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