Best way to save money at the moment?

[ncrn]

I'm starting a work placement year in September which means I'm going to have a regular wage for the year, I'm hoping to save some money up so I can do a bit of travelling either before I go back to uni for my final year or after I have completed my final year.

I'm not too clued up on what the best way to save or invest money is at the moment, I do have an ISA but I can only pay into it once a year or it gets taxed so its not too useful for saving money, also as far as I can tell the interest rate has crapped out thanks to the credit crunch.

I also have some money in NS&I bonds, I did win £100 recently and so have had a 20% return over a year, but obviously it is a lottery type thing more than anything so there is no guaranteed return from it, the thing I do like about the bonds is that it isn't very easy to access the money again so its less likely that I would spend it all before I want it.

So is anyone clued up on the best way for me to save money? I'm looking at putting away £100 a month and I also have about £2400 coming in from student loans which I aim to put most of away, it'll come in three instalments in September, January and April. Also if there are any good websites out there to look at that would be helpful too.

Thanks .
____________________
Past: 55 Sym Jet, 91 ZZR250, 03 NSR125R. Present: 97 ER-5.
https://www.nsr125.co.uk - NSR Owners forum.

[Phil.]

With regards to regular savings from your wage i suggest a regular saver account. I'm currently getting 8% from HSBC which has a 250 cap and as you would expect, you can't touch the money for 12 months and if you cancel the payments expect to be essentially fined for doing so. You will not find a better rate for this kind of saving anywhere else.

If you have any savings left over at the end of the month after a regular saver you should look into high interest savings accounts. I'm currently with egg for this. Rates are not great, but much better than my current account.

With your 2400 your choices are either an ISA or a fixed term savings bond. Bonds are taxed so take that into account when shopping round.

https://www.moneysupermarket.com/money/

I currently do all the things i have mentioned above, but i can't recommend any particular bank or account, you just have to do your research. I prefer to go fixed rate on all the accounts when ever possible. This certainly paid off for me when everything went tits up, but with the bank of england having the lowest interest rates for some time, it's probably not a great idea to get fixed at the moment.

[Tonka]

As above ^ all great advice and similar to what I currently do. I'd suggest keeping an eye on this site as there is always good impartial advice that is bang up to date.

You can subscribe for the e-mail and you don't get sent a load of spam for the priviledge!!
____________________
'The core of a man's spirit comes from new experiences'
Suzuki SV650S (Clean); Yamaha XT250 Serow (Dirty)

[chris-red]

Sell anything with tits or pistons.
____________________
Well, you know what they say. If you want to save the world, you have to push a few old ladies down the stairs.
Skudd:- Perhaps she just thinks you are a window licker and is being nice just in case she becomes another Jill Dando.
WANTED:- Fujinon (Fuji) M42 (Screw on) lenses, let me know if you have anything.

[The Disapproving Brit]

Depends on a lot of things. I'm utterly shit at managing my money and grasping the concept that the money in my account shouldn't be spent, so my current approach is this:

- I have an O2 Money card, this is a prepay VISA card which is free to use for anything in the UK if you're an O2 customer. The big advantage is it'll just reject the transaction if you don't have funds, and you won't be charged for this (my bank will allow the transaction and charge me £30 for the privilege)
- I transfer £100 a week onto the O2. That's my living money. All the bills are on Direct Debit, so the rest of my money just stays in my account and doesn't get touched.
- My bank has a 'sweep' facility to clear out any excess funds from my current account. That's set to reduce my balance to £1000 every month, moving any excess into an ISA. That's because I get paid every 4 weeks instead of every month, so £1000 gives me enough to get by on if it gets 'swept' on payday before any bills go out.
- Going out, I carry my O2 card, £20 or so cash, and a credit card with a £200 limit. That gives me about £50-100 cash on hand plus £200 in case of emergency, which is all the credit card gets used for.

That works for me, your mileage may vary.
____________________
Current Bikes: 1983 Honda VF400FD / 2003 Honda VT750 Shadow
Bike Test Passed 18/03/09, Car Test Passed 14/05/13

[GhostRider]

I'd consider taking up drug dealing, if you get caught just pretend you're some scrote from the council estate whos mommy and daddy didnt give him enough attention when you were a child.

Chances are you'll get off scot free!

Failing that, as mentioned, peruse moneysavingexpert as that has shed loads of ways to save money from which bank accounts/ISAs/etc have the best interest rates to 2 for 1 deals at restaurants an shit so at least if you are spending money, you're getting stuff at half price, every little helps an all that.

But seriously you'd be better off selling coke.

GhostRider
____________________
I have all the characteristics of a human being: blood, flesh, skin, hair; but not a single, clear, identifiable emotion, except for greed and disgust. Something horrible is happening inside of me and I don't know why. My nightly bloodlust has overflown into my days. I feel lethal, on the verge of frenzy. I think my mask of sanity is about to slip.

[Clanger]

I keep my eye out for Fixed Rate Bonds, usually by looking in the Money Section of The Times/Guardian. Last year I was lucky enough to find a fund fixed at 7.2 (which was just before everything went tits up in the financial market), unfortunately I didn't put a larger lump into it. But it matured, and gave me a nice bit of interest.
____________________
Be who you are and say what you feel, because those who mind don't matter, and those who matter won't mind - Dr. Seuss