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Saving Money - advice needed


Stevo985
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Morning VT.

As per usual my first point of call when faced with a big decision is Off Topic.

So, after buying my first house 18 months ago I've managed to spend basically all my money, and run up a few debts along the way (overdraft, owe my parent s a bit of cash that they lent me for a deposit and a credit card bill)

Now, however, I've taken on a lodger so I'll have a steady flow of cash coming in above and beyond my normal income, which I intend to save so as to pay off some or all of my debts.

Now even though I work in finance, I have an embarassingly low knowledge of banking. I have my normal bank account and that's it, I don't really know what everythig else is/does.

So my question is, what is the best type of account to get the rent I'll be receiving paid into? I've been looking at ISAs, but not sure if I should be going for normal savings accounts or other options I'm unaware of.

For reference, the amount I'll be paying in will be £400 per month (so £400 will be the initial deposit), and I'll need constant access to it for paying off debts as and when I can and for emergencies.

(and before anyone suggests it, I am doing my own research into the matter, but thought I'd ask here as I know there's a few people on here who have knowledge in this area)

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Now even though I work in finance, I have an embarassingly low knowledge of banking.

So it's your fault the economy is in the toilet!

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Please tell me you've taken my advice and go through www.Quidco.com at every opportunity when purchasing anything online?

I think if you'll be spending it / paying off debts frequently you're not going to earn much in the way of interest... that's before you get to the current interest rate we have.

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Please tell me you've taken my advice and go through www.Quidco.com at every opportunity when purchasing anything online?

I think if you'll be spending it / paying off debts frequently you're not going to earn much in the way of interest... that's before you get to the current interest rate we have.

Nice one Tamuff! I have not seen that site before!

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Please tell me you've taken my advice and go through www.Quidco.com at every opportunity when purchasing anything online?

I think if you'll be spending it / paying off debts frequently you're not going to earn much in the way of interest... that's before you get to the current interest rate we have.

Nice one Tamuff! I have not seen that site before!

Best kept secret on the net (although they have started advertising on TV). I've cleared £2k over the years.

Quick example, my home insurance is up for renewal, renewal price was £180 and a quick search around shows Sainsbury's bank to be cheapest at £155. Quidco cashback is £50 so for the sake of logging into my Quidco account, searching for Sainsburys and clicking the link to the sainsburys website I'll get £50 back making the policy a tad over £100 for the year.

Feel free to pm me if you have any questions.

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Aviva - Cashback increased to £65 at Aviva car insurance + 15 weeks' worth of free car insurance and an extra £25 cashback bonus if you take out 2 or more Aviva products in the same calendar month (more details)

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Please tell me you've taken my advice and go through www.Quidco.com at every opportunity when purchasing anything online?

I think if you'll be spending it / paying off debts frequently you're not going to earn much in the way of interest... that's before you get to the current interest rate we have.

Yeah I use Quidco, but I don't really shop online very much so I get a minimal amount back.

It's only my overdraft that I want to pay off as soon as I save enough (About 3 months' rent), everything else can be deferred so I should be able to get some interest over the next few years.

Any "emergency" withdrawals would only be if I overspent for that month so would only be the odd £100 here and there, so wouldn't drain what I'd saved.

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Any "emergency" withdrawals would only be if I overspent for that month so would only be the odd £100 here and there, so wouldn't drain what I'd saved.

I understand, but normally to get any kind of decent interest rate you need to agree to lock the money away for a set period of time without making any withdrawals.

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or, take out a zero interest credit card (12-16 months is quite normal), transfer the debt to that. Build up your savings (whilst paying just the minimum payments on the card). Then once you have enough to clear it do it.

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That's exactly what i'm doing Tamuff. I have a no interest Credit card. It's no interest until July ( I think) at which point I'll transfer it to another no interest credit card.

So that needs to be paid off eventually, but it's not super urgent.

And understand what your saying about keeping my money locked away for the best interest, but I just don't think I'll be able to do that, which is why I was looking at ISAs as lots of them allow unlimited access.

The only reason I want a seperate account is so that I will actually save. If I keep the money in my account I just won't save it, i'll end up spending it. But if it's set to come out of my account and into another one then I'll leave it alone.

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Some of the credit card companies pay money for taking out a card via Quidco, think I got £10 for taking out a Halifax card last year with 16 months @ 0%. Only £10 but better than a slap in the face :D

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Money Saving Expert - a great site for all things financial. Advice on here has saved me a packet over the years, plus they do a monthly email with all the latest info which is well worth getting.

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And understand what your saying about keeping my money locked away for the best interest, but I just don't think I'll be able to do that, which is why I was looking at ISAs as lots of them allow unlimited access.

Bear in mind that your ISA allowance for the year is in total, so if you withdraw from it you lose that part of your allowance.

This years cash ISA limit is £5,640, so if you deposit £2000 and then end up withdrawing it you'll only have £3,640 left, you can never get that £2000 back on your ISA.

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Talking about credit cards im thinking of getting one. Anybody know any good deals currently?

Credit cards are the tool of the devil.

If used responsibly they are absolutely nothing to worry about.

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Talking about credit cards im thinking of getting one. Anybody know any good deals currently?

Credit cards are the tool of the devil.

If used responsibly they are absolutely nothing to worry about.

This

And Si, get yourself on a comparison site like moneysupermarket.

That will let you personalise your search (credit limit wanted, whethe ryou want a balance transfer, how many months no interest you want, interest rates etc).

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