O/T Cash ISAs/Investment account advice

GreersElbow said:

I've often seen these type of threads pop up now and then on NSC and most OPs are satisfied with the advice given by fellow users, so I thought I would ask myself as I can't afford the financial advisor fees, and given the size of the funds I'm looking to put away, not really necessary.

A little background, I'm going to be studying a masters here in Lincoln; currently working for Anglian Water in a part time capacity, however, expressed my interest in their asset management graduate programme. This would mean relocating to either Peterborough or Huntingdon and as such, requires me to save up for a deposit, rent and additional fees for renting a property.

I am looking to open up an account which would limit my access to the cash I put away, which would be an initial deposit of £1,500 then topped up each month with a portion of my monthly wages. But I don't want to be able to access it like a standard savings account or current account as I know I would dip into it. However, I don't know much about ISAs and have considered the Barclay's investment account, whilst I know it is predominantly for medium term. I'm not looking to make a significant amount of interest or gains on the account, it is purely so I can't touch it as easily as a standard account. Though, an ISA account would be safer as I don't run risk of losing too much if I put it into an investment account.

That said, I'm not sure where to look, some ISAs I have come across don't let you access it for a year and don't allow additional funds put into it, which would not be helpful as I would like to add to it and couldn't say when I would need to access it if I were to be offered a job this time next year, but opened the account in say, August.

I was hoping someone may know more about the subject and to offer a little bit of advice. Anything would be considered helpful!

Thanks!

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LamieRobertson said:

I'm sure the professionals on here can offer you better advice than me...but I would just say that don't forget the new rules that came into force last month, in that you can now earn up to £1000 in interest tax free per tax year ...in view of that cash Isa's aren't quite as attractive as they used to be

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theboybilly said:

I'm not sure what monthly savings you might be able to afford to invest but last year, on top of my ISA, I invested £300 a month in First Direct's Regular Savings Account which gives 6% interest. The maximum you can put in annually is £3600. Santander and othe banks do similar accounts at varying interest rates. You wouldn't be able to open the account with £1500 unfortunately. I realise this isn't what you are really looking for but something like this might be able to run alongside any ISA at a higher interest rate

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LamieRobertson said:

I'm sure the professionals on here can offer you better advice than me...but I would just say that don't forget the new rules that came into force last month, in that you can now earn up to £1000 in interest tax free per tax year ...in view of that cash Isa's aren't quite as attractive as they used to be

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AmexRuislip said:

http://www.moneysavingexpert.com/savings/best-cash-isa

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GreersElbow said:

Literally just having a read on this.

I was wondering, with some accounts you can access your account but there is a penalty, some mention the penalty is the interest for that month; from a literal point of view, interest could be a pound, which is hardly a penalty at all. Or do many come with a fee + interest lost?

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theboybilly said:

I'm not sure what monthly savings you might be able to afford to invest but last year, on top of my ISA, I invested £300 a month in First Direct's Regular Savings Account which gives 6% interest. The maximum you can put in annually is £3600. Santander and other banks do similar accounts at varying interest rates. You wouldn't be able to open the account with £1500 unfortunately. I realise this isn't what you are really looking for but something like this might be able to run alongside any ISA at a higher interest rate

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AmexRuislip said:

I think that depends on what you choose which is best for you as an individual

http://www.which.co.uk/money/savings-and-investments/guides/how-to-find-the-best-cash-isa/

http://www.which.co.uk/money/savings-and-investments/guides/stocks-and-shares-isas-explained/

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Springal said:

Share Centre have some ready made stock shares profiles wrapped in an ISA. Under new ISA rules you can withdraw fairly easily but I'm sure you can get some self control. Can easily add in every month

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chimneys said:

You should point out you have to have a FD current account to access it. In addition you have to pay £1, 000 pm into your current account after 6 months, or its a £10 pm fee.

Total interest you will get if you pay the £300 pm max in for 12 months is £117. Only lasts a year and then you have to move it to a normal savings account (0.05% interest if you keep it with FD). However you can, I think, start the regular saver again.

So a good headline grabber, but not going to make the difference.

BTW not dissing the product, I use it, but £117 pa is neither here nor there to most people.

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GreersElbow said:

Of course, just looking for any additional advice; I've got a meeting with Barclay's to discuss their ISAs, but their community banker mentioned their investment account which I can access without penalty and withdraw from at any time. This fits within what I was looking for, but carries the risk of losing some or in the worst case scenario, all of my money. I'll have a look at your links though, I appreciate it. However, like all investment products, I suspect there's an admin and management fee on top of it.


That's an interesting shout, I'll look into that. I'm not looking to create a portfolio of stocks and shares, that's going to be an ambition of mine post-uni for a rainy day fund. But too early at this moment, but I will definitely look into that. Thanks!


I read into the FD one, liked the sound of it until the required current account. I fall short of the monthly requirement, and don't fancy paying a fee for access to ISA, though a small fee, over time, that's a small chunk of savings gone in fees.

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Springal said:

They are ready made, so you just select the aim. Growth, income etc. No need to build your own

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chimneys said:

You should point out you have to have a FD current account to access it. In addition you have to pay £1, 000 pm into your current account after 6 months, or its a £10 pm fee.

Total interest you will get if you pay the £300 pm max in for 12 months is £117. Only lasts a year and then you have to move it to a normal savings account (0.05% interest if you keep it with FD). However you can, I think, start the regular saver again.

So a good headline grabber, but not going to make the difference.

BTW not dissing the product, I use it, but £117 pa is neither here nor there to most people.

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