Not me, I’ve always been rubbish with money. Hence I’m asking here, my daughter asking for advice and I have no idea what to suggest. She wants to initially put £500-£1000 in savings and be able to add to it as and when she can. Doesn’t want to be able to access the money easily, for the next 3-5 years at least. What’s the best way, ISA’s and if so what type of ISA ?
It’s a mine field at the moment and the return on traditional savings is shit but playing anything other than traditional savings is a minefield and a huge risk with the markets unpredictably up and down. Some cash ISAs still have better than average rates although very few beat inflation. You will get better rates by fixing for a period but that usually means a lump sum and not drip feeding. https://www.thisismoney.co.uk/money...gs-rates-General-savings-Internet-branch.html This is just one of a number of internet based advice pages. Andy
Tell her to buy a 916, its likely to increase in value more than 1% interest at the bank. Plus she will get brownie points from you as of course you will ride it as her bike manager.
Maybe for even more of a long term investment and not suitable for her needs at this point, but I've just started to whack a wedge of my salary into AVC's, for nothing more than the 40% tax break I get on them.
To save money if your a women stay away from shoes and handbags and if your a man stay single, i'm married so i'm fucked.
Saving rates have been decimated due to the current climate unless you’re happy taking risks which I’m not and hence I’m skint....not much help am I. Sorry Al.
If it’s to save for a deposit on a house then Lifetime Isa is the way to go. Check out Martin Lewis’s MSE site per post #3 above. Premium bonds no, only if you have close to £50k to invest. General savings rates are poor.
Take a look at the new reduced prizes before plumping for these. Median winnings are more relevant than average winnings and a lot less. I’m presently reviewing options for coming out of them. Martin Lewis does not rate them highly!
https://www.bullionbypost.co.uk/gold-bars/1-ounce-gold-bar/1oz-gold-bar-value/ Have a look in the last 30 years when there was a recession or turmoils on the markets..
I am not offering financial advice as I am not qualified. Because bank interest rates are so crap at the moment I have invested in premium bonds. No interest but the potential for returns on money invested.
Interest rates are so crap at the moment, and who knows what will be going on in a few months. Anything she's persuaded to put her money in that has limited access could be a huge and difficult to reverse out of mistake. I would suggest that just for 3-6 months she just banks it each month, perhaps starting a separate account that is only accessible or exists online. That will give her a larger lump to start with when things may have settled down a bit. In a few months the financial institutions will have settled in for the long haul, and will be finding ways to ensure they are more attractive for punters to invest in than their competitors. There will be less money to go around, and they will need to encourage us to give them a bigger share of our money. The separate account is good in many ways. Don't have a bank card for it, and never spend anything from it online, that keeps it safe with the account numbers not going anywhere. Dump all her monthly incomings into it and transfer them back out as she needs them. A small amount of spending money each week and then larger lumps as required. This again is good for security as it limits what can be withdrawn from the more public account by a hacker/scammer. But mainly it makes you question everything you spend, and helps with saving. Nasher.
Unfortunately NS&I have now dropped their rates income bonds dropping on the 24th of November, the others already I think
