Page 1 of saving accounts

I know nothing about saving account/options as i am a spend,spend,spend sort of person but i think saving money for a rainy day is not a bad idea. I am a 23 year old male, i dont have a job but will be looking in october with a salary of between £13000-£15000 a year and looking to save between £250-£500 a month.

does anyone have any experience/knowledge they could pass on.

I was looking at www.moneyfacts.co.uk and they say the best saving account
at the moment would be with alliance-leicester www.alliance-leicester.co.uk/savings/index.asp?page=online-saver

what do you guys think

Thanks guys

This item was edited on Thursday, 23rd September 2004, 20:49

Yup, I have only heard good things about the A&L savings account. My mother recently opened one (I know because I did it all online for her!) it took about 5 days to set up due to it`s popularity, but she has had no problems with it.

I personally have a Smile Mini Isa which is good because it allows you instant access to cash and still pays out 5% gross (you need to have a smile current account to get this rate, otherwise it`s 4.25% gross) which is about 4.5% Net (I think!)

If you`re only planning on saving a small amount, either of these will be fine. Once you start saving larger amounts however, it`s time to speak to a financial advisor.

Don`t think of yourself as an ugly person. Think of yourself as a beautiful monkey!

You`re going to save between 25-50% of your monthly income!!???

To be honest your better with something more managable to begin with that you are more likely to stick to, more along the lines of 100-150 per month, and bang it in an account with a notice period so you are not tempted to dip in. Get three months worth of salary in the bank, then forget about it (until that rainy day!), and start a pension with what you were saving.

I`m in the a similar position as you, earning about the same, and it works for me.

Hope this helps.

Whittler

I recommend Aliance and Leiceister, it pays 5.35% interest, which is higher than any other savings account. Max amount you can invest is £25k and you can have access to your money at any time. Easy to set up online too.

Have a look at the Money Saving Expert.

Make sure you start off with a cash ISA, www.if.com, do one at around 5.5% (can`t be bothered to check!), and it`s tax-free interest.

And, however much (or little) you can afford to save each month, set up a standing order straight from your current account into your savings account on the day you get paid, and you`ll hopefully never even miss the money.

Get yourself over to www.moneyextra.com for comparisons on savings.
Also - check out mini-cash ISAs, since you can save monthly with those and their tax free (max annual limit of £3000).

Miles

Quote:
You`re going to save between 25-50% of your monthly income!!???

I live with my parents and dont really have any financial commitments at the moment so at the mo i would be able to do this