savings account

[Rubber314Chicken]

don't know much about UK banking, but in the us we have cd's- certificate of deposits. Its basically a savings account where you can't withdraw for a certain period- basically giving the bank more money to have. I know for a long term (5 years) the interest rate is about 5x the rate of a savings account.

 

[dude_se]

thanks, +1 for you.
yea think im going for a savings account. im in no position to be gambling my money on the shares/putting it in a bond. i just wanted a few extra quid to help me through university, and as i had £2500 before i went i figured putting £2000 or something in another account wouldnt hurt, although im assuming its best to still use my current account for day to day withdrawals, or is it best to put everything in the savings, and transfer as and when i need to?

 

[IAntDemo]

my boss has guv bonds, he has 30k in their, now he has more when he put it in.

but then again, the guy is a fully chartered accountant, he knows where to put cash

and you don't risk your cash in guv bongs, who ever told you that must of been mixed up. your money is safe.

 

[David Lindon]

If you are planning to save regularly then a regular savings account will be the best option for you. Halifax recently had a promotion that offered 10% on up to £500/month.

If not then an ISA is the best option because in a regular savings account you pay 20% tax for on a 5% interest, 1% will be taken as tax and you will received 4%. Having said that, you still need to look for the best rate ISA. A&L had a promotion offering a 10% ISA if you changed your current account to one of theres.

When looking at ISAs, beware if it says APR or AER - a 5% ISA AER really means you are getting 4%, its equiveland to 5% because you are not paying tax. If it says APR then that is the rate you get.

 

[tom-knox]

Guv Bongs?

Govermental Crack Cocaine?
Bad way to go with ur investment

 

[JogaBonito1502]

I say invest in a stable stock. My dad invested R$8000 back in Brazil on a local stock. This was quite a few years ago, of course long run. He's made over 800% from that money he put it. It was increasing little bit by little bit and that's how far he's gotten. But if you can't do longterm (3-5+ years), then I think, for the reasons mentioned by Root, you should use a savings account. The simpler it is the best off you will be. There are virtually no risks. Any other thing would be getting more money but also risking a great loss. If you can live with the probability that something will go wrong, then by all means go for the one that makes more money.

 

[Rubber314Chicken]

I'm a fan of CD's, once again, don't know if you have them in the UK, but if you do they are great. Some 3 month CD's will greatly increase the interest you make, and at least here in the US, they are insured just the same as a savings account.

 

[dude_se]

cheers david. btw i was just planning on depositing around £2000 and leaving it at that. possibly more throughout the year if possible, but deff not every month.
A and L offer a 10% account, but from what i understand your balance has to be less than £2500 these all confuse me lol. i think ill just get a savings account with 5-6% AER and leave it at that. after all im going to win which ever one i choose.

 

[Racboy]

Go to moneysaving expert .com..".Martinsmoney" what he doesn't know about saving a bob or two is not worth knowing.Plus its all free advice.Hope you make pounds££££££££££

 

[dude_se]

hmm thanks ill check it out. been meaning to go on sites like that but havent got round to it.