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What to do with savings

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
I'm planning to start saving some money by the end of the year (when my overdraft is paid off).

What is the best thing to do with savings?
-Keep in current account (guessing not!)
-Savings account
-ISA
-Shares/Invest

-maybe pay off some more student loan?

I'm saving for a deposit on a house (this will probably take 10 years at least but I have to start somewhere..)

Any advice?

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Savings account or ISA.

    You'll get more interest off those than you will pay paying off your student loan at the normal pace. SLC are also notoriously bad at dealing with over payments so the grief is apparently often not worth it.

    Look around, see who has good interest rates for Savings or ISAs, you may find, even with the tax thrown into the equation that some savings accounts are better than ISAs.

    If you've got the time go into a couple of branches and talk to one of their advisors, don't commit to anything, but get suggestions from a few and compare what they say. Nationwide is one place to go, they are usually very helpful, friendly and explain things in an easy to understand manner.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I would talk to an advisor before doing anything with the money.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru

    If you've got the time go into a couple of branches and talk to one of their advisors, don't commit to anything, but get suggestions from a few and compare what they say. Nationwide is one place to go, they are usually very helpful, friendly and explain things in an easy to understand manner.

    I'm a big fan of Nationwide, never had any problems with them, always been able to deal with any questions i have over the phone or in branch when i've been there

    Aside from that they are always competitive on both loans and savings, their agreed overdraft rate is one of the best on the market and their unauthorised one is average going too.

    I recent report showed that over the past 10 years numourous banks/BS had fantastic rates on savings/loans but these usually only lasted 6months, whereas Nationwides were constantly in or around the top 5 deals, and over the course of 10 years the better option.

    So i'm sure you'll find better deals out there, I think Abbey have a great deal on an ISA at the moment, but unless you can be bothered to constantly switch around to save some extra pence, I'd recommend Nationwide


    BUT i'm certainly no financial advisor, just going by personal experience and giving feedback on a positive experience.

    Can't go wrong with having a shop around and deciding for yourself :thumb:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    If it's the proper student loans where the interest rate you pay back is less then the interest at the bank then better to let it tick over as per normal and put the money in the bank and keep the difference.

    if you save like £1million you can quite happily leave it in the bank and live off the interest for the rest of your life.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    if you save like £1million you can quite happily leave it in the bank and live off the interest for the rest of your life.



    Really? I'm gonna do that then :thumb:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Mr Orange wrote: »
    Really? I'm gonna do that then :thumb:

    well yeah - you have £1million in the bank - get say 5% interest on it then that's £50,000 a year before tax - that's how the super rich live - they have a bulk of cash they never touch and live off the interest.
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