general savings account info

[inversions]

hi,
Just looking for some basic financial advice. My partner and me want to get £40,000 together to renovate out dilapidated house. We don’t want to take out a loan or mortgage (the house was inherited and we don’t want to lumber ourselves with anything like that) and don’t mind it taking several (5 or more maybe) years to finish. But the thing is that between us we currently have about £4000 just sitting in ordinary bank accounts and it seems to me that we can get much better interest if we bother. Neither of us is financially clued up so any basic advice is well appreciated.

We plan on doing it bit by bit. First get an architect in, get the planning, do the roof, do the kitchen extension etc. IE we want to have an account we can draw on or deposit into without hassle. It doesn’t have to have a joint facility; it can be in just one name. It doesn’t have to have a debit or cheque facility. Just better interest than a standard account. What do you recommend?

Thanks for any advice!

[BunjeesPiggiesPoochins]

I have no idea about this kind of stuff, but what about an ISA?

[BunjeesPiggiesPoochins]

I think with an ISA you can put £3000 in and over the course of the year, it gives you a untaxable interest of £300? But I could be wrong...

[inversions]

okay sounds like the kind of thing we are after. Anyone else got more info? BTW I phoned my bank before I posted the first message and got cut off after I agreed to talk to somone about upgradeing my current account, which I hadnt wanted to do anyway. So thats why I'm trying here. At least then I hope to be able to walk into a bank (or whatever) and say: 'I want a such n such' rather than them trying to convince me to get somthing they probobly get some kind of commision on.

[PATRIOT73]

http://www.barnsley-bs.co.uk/savings/isas/minicash.htm

im wiv barnsley
basically iits a mini isa
n u can withdraw any time
nn ddeposit upto 3,000 yearly
tax free

or theres full isa
same as above
but deposit upto 7,.000

[alisonofcoalway]

Hi
With an ISA you can put in up to £3000 each financial year (April to April) but if you withdraw any of that you can't top it back up to £3000 - you then have to wait til the next financial years starts) you do get tax free interest though. If you are looking for something to put money into over 1, 2, or 3 years you can get a Building Society Bond but if you take the money out you often lose any interest.

E-savings generally have quite a good rate of interest but interest is taxable.

You can go on-line to get savings info at any of the major banks / building society websites:
Alliance and Leicester
Nationwide
Barclays
Lloyds TSB
Etc.

They will tell you the current interest rates on their different a/c's and how they work.

Hope this helps

[e_nviable]

I think with an ISA you can put £3000 in and over the course of the year, it gives you a untaxable interest of £300? But I could be wrong...

I wish !

The current (tax-free) interest on an ISA is approx 5% - depending on which Bank/Building Society your money is deposited with.

I cannot stress heavily enough that a public Forum - albeit a VERY good and helpful one - is NOT the place to be asking for financial advice

You really need to speak with an INDEPENDENT Financial Adviser to make the most of your money ........

I can recommend a very good one who has looked after me for the past 5 years Otherwise just check on yell.com for those in your own area.

e

[inversions]

Hi,
dont worrey about asking this kind of thing on a public forum. I mean, I havnt said anything I wouldnt say to a casual friend down the pub. I think that a few months ago I even talked to a taxi driver about it, but I had had a few and cant really remember.

Anyway the general advice I've recieved elsewhere has been: go for an ISA. Which has matched this so far. A financial advisor seems a long way off to me, I mean they must charge and we wont have saveings much above a few thousand until after the house is finished. And thats years away. But I thank you for the advice and will deffinitly consult such a person when, or maybe if, we have enough spare cash to warrent it.

At least when it comes to geting the work done I know a roofer and an electrician very well and am friends with a chap whos brother has his own building company. So heres hoping we wont get ripped off......

[e_nviable]

Hi,
dont worrey about asking this kind of thing on a public forum. I mean, I havnt said anything I wouldnt say to a casual friend down the pub. I think that a few months ago I even talked to a taxi driver about it, but I had had a few and cant really remember.

Anyway the general advice I've recieved elsewhere has been: go for an ISA. Which has matched this so far. A financial advisor seems a long way off to me, I mean they must charge and we wont have saveings much above a few thousand until after the house is finished. And thats years away. But I thank you for the advice and will deffinitly consult such a person when, or maybe if, we have enough spare cash to warrent it.

At least when it comes to geting the work done I know a roofer and an electrician very well and am friends with a chap whos brother has his own building company. So heres hoping we wont get ripped off......

Usually their advice is free...... they earn their fees/commission when you actually buy a product recommended by them as being suitable to your financial position.

You don't have to be 'loaded' to use them. I don't have much money, certainly NOT 000's, but the guy I used recommended where to put it for maximum benefit regarding tax etc. His commission came from the company whose product I purchased.

Good luck, whatever you decide upon.

e

[inversions]

Oh thats cool. I didnt realise it worked like that! I shall look into it some more. Thanks!