Savings account

[phantomtek]

When you were younger did you have like a saving account that your parents put abit of money in every so often for you?

Because I have just remembered about mine it has £1100 that I can have when I am 18 or now if it's sensible and I just wondered what you all spent yours on if you had one. Because I am thinking of putting it towards a bike or just leaving it there for when I need tyres or other such items, like a big service.

What did you do?

[Itchy]

Me ? , mr boring crammed it into a high interest savings account (ING then the 4.75% HSBC internet account) to save for something maybe a house deposit or something but nothing long term which traps you into it like an ISA (not strictly traps but take £300 out and your Isa limit for that year falls by £300.

I didn't want o piss it away or anything considering it was 15 years of my mum throwing the odd bit of spare cash into the account.
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[phantomtek]

[instigator]

I was given my account at 16 but it was watched very strictly by my mum (when I say "strict" what I really mean is I hardly spent a thing knowing that she's kick my arse if I spent any unnecessarily). Was only about £400 if that.

Then I got myself a job and started putting money into it and hey presto......about 10 months later, I blew it all on a bike.

[haGGard]

My parents saved £2000 for me which i got when i turned 18. It went straight into an ISA, but when the Reading tickets went on sale, i needed to use money from it to buy them as i had none in my current account, so its had £300 taken from it. I want to get it back up to £2000 again when i have some free money to put into it, then i will forget about it, and use it in emergencies etc...
____________________
chaff mans random tingz on loot
"Why dont you go and weld your face to a moving train, you sack of pus" - tobyr
"ROFL MY TOFFLE I AM TEH 1337 SPELLING MISTAKE FINDER!" - BikerBen

[phantomtek]

I've been looking at these ISA things, what's the deal with them anyway?

I found this site https://www.moneyextra.com/compare/cashisas

And it lets you choose who to go with, I saw one at 5% (PA?) that lets you withdraw anytime and doesn't have a minimum withdrawal.

Anyone care to explain further?

[Robby]

When I was 18 what had been my savings account became my current account and I spent my way through it keeping sane in my last year of school - was about a grand.
TBH once you're earning you can save money pretty fast if you're vaguely sensible with it, and when you're taking home ~1200 a month a grand isn't such a lot of cash any more.

General ISA idea is that you don't withdraw from it. Its all a little complex, but basicaly you can pay up to £3k a year into one, and the savings are tax free.
However, if you paid in 3k, than withdrew 1k, you couldn't pay that 1k back in again until the following tax year - you can only have 3k go into the account per tax year.

[Itchy]

ISAs are to replace peps and tessas (Much more generous than isas)

all the int from them is tax free so with 1K @ 5% you get £50 tax free
max is 3K per year.

its like this April 6th start of a new tax year you cram in £3000 ,

10 days later you find out you need £500 , so you go withdraw £500
, 1 day later you find you only need £50 , you can't put back the £450 that you took out in the same tax year.

Since ISAs only allow 3K movement of cash per year and 4K of shares , some building societies are better giving 5.45% but you have to pay tax and they have restrictions on withdrawl ie Halifax does a 5% one but hafta pay tax AND needs 90days before taking out.
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[phantomtek]

Ok, from that I can see that £50 a year isn't really that much to bother having the money stored away from me so I don't think I'll put it in there.

What job did you get for £1200 + a month Rob?

My Mum actually said to me to use it for touring Europe or Britain, or using it in the Summer to go watch MotoGP at different venues, but I think I'd rather store it or use it on something that I won't lose any of it on.

[Itchy]

Premium bonds? , you get inflation about 2-4% , and a 1-million 2 1 chance of winning a million quid each month for free.

cept they lock in your money for ages.

EDIT

Don't believe the hype of the 8% HSBC or the Barclays 10% , they have so many T&C and so many restrictions that you can only get a few quid after a year rather than say cram in £10000 and get £1000 back
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[McJamweasel]

Don't use it on crappy stuff like tyres and servicing - thats boring and it won't feel like you've had any use out of it.

Your mum's suggestion is a good one. You can do a good tour of Europe on £1100.

In the meantime, ING have a good internet savings account. 4.5% with no daft tie ins - you can have your money as and when you want it.
____________________
BCF: Be yourself, just don't be an arse.

[Itchy]

well don't spend it on your ER5 who knows when it'll die , unless you mean spending £5 on some petrol to torch it , 1.1K would go nicely towards a CB500 though.
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[karen_moomin]

[phantomtek]

So if I jam the cash into an ING savings account, I will get £50 a year, that's if it stays at £1100.

[Itchy]

[phantomtek]

[karen_moomin]

[Itchy]

[phantomtek]

[karen_moomin]

[Itchy]

my sister had tons of premium bonds and won sod all , and don;t forget by buying them you are propping up an evil regime.
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[phantomtek]

[karen_moomin]

[phantomtek]

You make a good point. Have you won anything Karen?

[karen_moomin]